Play-to-win video games have gained enormous popularity in recent years, offering real-world economic incentives to those who play them.
By completing tasks, battling other players and progressing through various levels of the video game, players are rewarded with in-game assets such as virtual lands, avatars, weapons, costumes and NFTs that can then be taken out of the video game and traded or sold in markets.
There are many blockchain-based video games on the market today; however, some of the most popular are: The Sandbox, Splinterlands and Gods Unchained.
But, perhaps the best known and most influential title in this space is Axie Infinity.
A two-dimensional video game that consists of creatures called "Axies", which are, essentially, NFTs that can be bred and used to fight other Axies. Through fights, players can earn crypto tokens called "smooth love potion" or SLP.
At its peak, Axie Infinity players around the world were earning thousands of dollars a month for playing just a few hours a day.
According to DappRadar, the video game became the No. 1 NFT collectible in 2021 even though it was never available in popular app stores and was also never promoted by the video game industry.
But as quickly as Axie ascended, it ran into big problems and its popularity plummeted.
Likewise, the entire GameFi market, where these play-to-win video games exist, has taken a downturn.
As recession fears continue to weigh on the entire economy, the once hot cryptocurrency space has cooled significantly, and blockchain video games were the hardest hit initially.
But, GameFi is expected to be one of the first to recover from this downturn, as indicated by recent venture capital funding data compiled by popular crypto-focused news site The Block.
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- This article about Binance was written by Luca Escobar [@PepeBNB] for APfinanciero. We hope you enjoyed reading it and that you learned something new.
