The gaming industry is a multi-billion dollar market traditionally dominated by giants such as Atari, Sony, Microsoft and Nintendo.

Throughout history, these leading companies have strived to offer entertaining gaming experiences to attract new players and increase their market share.

However, non-fungible tokens (NFTs) attempt to give players a financial incentive to play games in the form of NFTs as well as provide an engaging gaming environment.

Known as Play to Earn (P2E) games, these games are played in the Metaverse, which is essentially a fantasy world. The P2E game model requires platform users to be financially rewarded for playing time and effort. As a result, the model has a chance to grab a piece of the $ 175.8 billion global gaming market, which is expected to grow to over $ 200 billion by 2024, according to a Newzoo report.

Minh Doan, co-founder of Warena, a dedicated NFT game, told Cointelegraph more about the importance of this model. He said:

“Today we call the game model of making money on the blockchain GameFi – a combination of a decentralized economy and game mechanics – has become a real sensation in the market due to the fact that during the game users receive tokens that can grow tens or even hundreds of times more expensive.”
Protocols in the NFT gaming sub-sector have gained a lot of popularity when it comes to users and volumes. The associated tokens are also very well implemented. The original Ethereum-based Axie Infinity (AXS) NFT token was charged per subsector. The token has received 83.35% in the last 90 days, 706% in the last 180 days, and over 73,000% growth from year to year.

According to CoinMarketCap data, AXS is currently on its way to the $ 120 streak and has climbed to one of the 25 largest cryptocurrencies by market value, making it the only NFT gaming-related token to have dropped. The platform itself has shown fantastic growth in the number of users and volumes since its launch. There was $ 2.6 billion in trading activity on the platform with 836,149 traders, according to Dappradar. The platform has also announced an action plan for its original token.

Related Topics: Metaverse, play-to-win, and the new financial model for games.

Cointelegraph spoke with Alex Salnikov, co-founder and product manager of Rarible, an NFT marketplace, who spoke more about the drivers of such remarkable growth in NFT gaming platforms, both in terms of volume and users. He said:

“This growth is in line with the broader acceleration of the NFT market and seems to mark the diversity of NFT use cases. Overall, there has always been a trend towards gamification in cryptocurrencies, and this is in line with the concepts of NFTs, which are closely associated with an interactive and engaging community experience. ”
He also added that the value proposition of blockchain technology is understandable and artificial in the gaming industry, including P2E expertise and in-game assets with obvious origins.

NFT gaming platforms are growing
While Ethereum is the most widely used blockchain network for the distribution of decentralized applications (DApps), there are many other blockchain networks in the NFT gaming ecosystem such as Binance Smart Chain (BSC), Polygon, Hive, Harmony, Solana, and Flow. It has also gained a large user base along with growing volumes.

According to Salnikov, “Polygon is generally considered one of the main game blocks due to its EVM compatibility, high throughput and low gas costs. It is also the leading sidechain of Ethereum, which means it is connected to the main NFT – the first layer ecosystem. ”

Cointelegraph spoke with Jesse Reich, co-founder and CEO of Splinterlands, one of the leading user-friendly NFT gaming platforms, about choosing a protocol for the Hive Network to build their game. He said:

“People think our choice of Hive was strange from the early days, but it has a freemium structure. Players can register using their username and password and get started. It is difficult to replicate the POW blockchain with gas charges. ”
In October, Binance announced a $ 1 billion fast-track fund for the overall development of the BSC ecosystem. Popular games on BSC such as MOBOX: NFT Farmer, Faraland, ZOO Crypto World and CryptoBlades will undoubtedly grow as a result of this fund, which has led to the massive adoption of the network.

Despite the notable growth of many platforms and networks in the NFT gaming subsector, the long-term supply of these games may be questioned given that players from the traditional gaming environment are used to playing very well-designed games. These games also have great gaming systems as most of them are supported by large companies that have a lot of resources and infrastructure to develop.

Source: CoinTelegraph