We see every public blockchain trying to challenge Ethereum’s dominance as the DeFi space boils. However, after the success of the Axie Infinity game, people started to show interest in the game market again with the “Play To Earn” trend. Right now, after DeFi and CeFi, all eyes are on a new concept called “GameFi”. So what is GameFi? Let’s learn about this and its implications for altcoin projects through today’s article…
What is GameFi?
Combining the words Game and DeFi in one name, GameFi is the gamification of financial mechanisms where users can earn money by playing games. Another popular term for this industry is the Play to Earn model. On the surface, the keyword is “game”, but at its core, “finance” is the most important thing for blockchains.
How does GameFi work?
The GameFi craze has changed the simple game system. It has provided users with the opportunity to win lucrative prizes and gaming is no longer a waste of money, it’s actually about making money. The 2021 NFT summer has turned into a GameFi summer with several games taking crypto as a backdrop and taking token prices by storm.
With the increase in the price of the AXS token, it is impossible not to mention the Axie Infinity frenzy. Data from DappRadar shows over 271,000 active users on Axie Infinity over the past 30 days. This popular crypto gaming platform on Ethereum has brought in more than $220 million in the last 30 days, making it the top revenue generator among all DeFi protocols and blockchains, including Ethereum, according to data from Token Terminal.
The GameFi environment offers developers endless opportunities to create a new universe and world filled with creatures, events, objects and even in-games with their own hands. Players are presented with endless possibilities to monetize in-game events and take advantage of the many gaming benefits. The catches range from thrilling action and captivating graphics to original meme-based fun that hides plenty of instruments to earn real money.
Value is the core concept of GameFi
Many GameFi apps, hidden behind the simplicity and cuteness of the characters in the game, indirectly introduced the players to the complex but simpler financial mechanism while collecting everything in one thing. In the case of GameFi, it all comes together to take away the boredom and change the complex mechanics of making money by playing games. Value is the core concept of GameFi, where “playing” seamlessly translates to “work” and “win”.
Cryptocoin. com, rewarding players with cryptocurrencies of real value is a unique idea to attract more people. As NFTs become coveted items that can be used to lubricate the gears of a DeFi mechanism, they gain real value and begin to attract more than the attention of avid collectors and fans. As GameFi blurs the lines between games and finance, it appears to be starting to not only emulate, but even surpass, the real world of the in-game. As investors increasingly buy and sell decentralized financial assets in virtual stores, GameFi and DeFi may become one over time.
GameFi altcoin projects are dazzling!
To some, the combination of gaming and cryptocurrency may seem like the perfect marriage. However, there are admittedly mixed opinions. “Crypto is looking for a kidollargeous market use case,” said Andrew Tu, director of quantitative trading firm Efficient Frontier. Gaming is an industry that people have been excited about for a long time. This is the first crypto space that the average Joe without a great understanding of crypto or Blockchain can join. While Axie Infinity has proven to be a compelling use case for blockchain gaming and has paved the way for new entrants to the space, not every copycat can make it perfect.
Therefore, with the success of Axie, we are likely to see major gaming companies such as Activision Blizzard or EA (Elektronik Sanadollarsar) enter the space and bring blockchain games to kidollars in the coming years. But there will also be those who use this craze to create fake games, scam investors and gamers. Therefore, be very careful when deciding to invest your money in any project! There are also risks for the hot GameFi industry, given how quickly it’s growing. Therefore, according to experts, you should do detailed research before investing in game-oriented altcoin projects!