The Value of the Crypto Gaming Market is Expected to More Than Double to Over $20 Billion in 2023 As Games Adapt and Improve.
Crypto gaming may be an unfamiliar concept to many, but there are signs it is becoming more mainstream. Following the success of ‘Fortnite’, more games are being created that are free to play, with the profits being made from in-game sales. With many gamers being young and tech-savvy, this has naturally led to them using cryptocurrencies for their purchases. This has led to game developers designing games specifically for crypto users.
Using blockchain technology for game assets has a number of benefits. The most significant advantage is having items transferable across games. A Worldwide Asset eXchange (WAX) survey showed that 62% of gamers would be more likely to invest in digital assets if they were transferable between games. Using blockchain would tie the assets to the player, not the game. The security features of blockchain would also reduce fraud, theft, and hacking.
Crypto gaming can take many forms. The simplest is Play-to-Earn (P2E), where players earn cryptocurrencies and NFTs by playing that can be sold for real money. ‘CryptoKitties’, created in 2017, was one of the first to do this. The aim of the game is to breed, trade, and collect cats. An NFT represents each unique cat. However, P2E games suffer from poor and repetitive gameplay that results in gamers losing interest and means the games rarely have sustainability.
Crypto gaming has moved away from the original basic games and now offers more developed gameplay with attached communities. Games such as ‘Alien Worlds’ have basic gameplay where players can earn by Trilium mining and by going on missions. There are also weekly elections on each of the six planets to choose members of the Syndicate, who then decide on proposals. This has helped to create a community, and getting involved with voting helps to build long-term interest.
One of the most popular crypto games in 2023 is ‘Axie Infinity’. It is a blockchain game with an in-game economy based on Ethereum. The aim of the game is to collect Axies which are cute, digital pets that vaguely resemble axolotls. Players have to breed and raise their pets and even create kingdoms for them. Body parts and features are randomly assigned and you have to choose the best way to combine the options you have. They then battle other Axies, with each one being an NFT. Data from BeInCrypto shows that ‘Axie Infinity’ has over 300k active users. The game has a lot of similarities to both ‘CryptoKitties’ and ‘Pokemon’ and that familiarity seems to have helped to make it very well-liked.
Another blockchain game that is leading the market in 2023 is ‘Gods Unchained’. The game can be compared to both ‘Magic: The Gathering’ and ‘Hearthstone’. It is an online trading card strategy game built on the Ethereum blockchain. There are more than 400 cards available and to play you buy a random pack of cards. You can buy, sell, or trade individual cards on a marketplace. Players start by choosing a god from the 9 available and then create a deck of 30 cards. You can then engage in skill-based multiplayer battles, with the aim being to reduce your opponent’s health to zero. There are also tournaments to participate in and a campaign called ‘Blessing of the $GODS’ you can join. All the in-game assets are NFTs and players have complete ownership over their items. The developers of ‘Gods Unchained continue to improve and expand the game regularly with new features and content. Gods Unchained has over 450,000 registered players and it has recently joined Epic Games Store. This combined with plans to make it available on mobile devices means the game should continue to grow.
For players looking for something more creative, there is ‘The Sandbox’. This game will seem familiar to ‘Minecraft’ fans. It is a multiplayer game where users can build their own worlds with unique in-game objects. Players can design games or items and then sell them.
It is based on the Ethereum blockchain. The land is a NFT and players can create unique worlds and rent space to others. The game has 1 million unique players and 4.5 million user accounts with registered wallets. A recent update of ‘The Sandbox’ meant that now players no longer need a crypto wallet but can instead register for an account with just an email address and password, widening its appeal.
The latest development in crypto gaming is Free-to-Own (F2O) games. Players are given NFTs and crypto in the game instead of having to earn them. The game’s owners make money as a percentage of the game economy. In effect, the game is co-owned by both the players and the developers. The theory is that players will be invested in the game so they will promote and champion it. The developers will only see a profit if the game succeeds, with many users exchanging their NFTs and crypto. As there is no need to purchase an NFT or tokens prior to playing the game, F2Os appeal to first-time blockchain gamers who are not familiar with crypto.
While this may seem very speculative crypto gaming is growing rapidly. A recent report from DappRadar and the Blockchain Games Alliance showed that a total investment of $739 million was made in blockchain gaming and metaverse projects in Q1 2023, a 12.95% increase from previous quarter investments. Trading activity in virtual worlds closed the quarter at $350 million. Over 67,000 virtual land transactions were recorded in March, nearly half of the quarter’s total of over 143,000. Crypto gaming saw a slow start to 2023 but it is expected that it will show rapid growth and expansion.
While some cryptocurrencies have been created specifically for a game, mainstream digital coins are still the most used. Bitcoin is the most widely used, but it does have some drawbacks when used for crypto gaming. “We have found that Monero is popular with crypto gamers,” says Nathalie Roy, owner and creator of Monero Wallet, XMRWallet.com. “Monero’s speed and low fees appeal to gamers who often need quick and cost-effective transactions. Monero also provides complete anonymity, making it a good choice for users concerned about their transaction privacy.”
With so much money being made in crypto gaming, it is no surprise that traditional gaming companies are moving into the market. One of the most high-profile is the upcoming Final Fantasy game from Square Enix, that will include NFTs. Square Enix is also releasing a new RPG built around blockchain technology featuring 10,000 collectible NFTs called ‘Symbiogenesis’. As more mainstream game developers embrace crypto gaming, its popularity will only increase.