Diversifying your crypto portfolio can be an effective way to manage risk when trading and investing. GameFi promises to be a leading trend in crypto this year with a number of popular titles, supportive communities and thriving economies.
As with all crypto, ensure you research a GameFi project fully before investing in its token. GameFi coins can help diversify your portfolio but never invest more than you can afford to lose, as an asset’s value can go down as well as up, especially in a volatile market.
CryptoSlate published a well-researched report on the GameFi industry, comparing finance and investment figures from 2022 against 2021, to paint a picture of the growth GameFi experienced. The report included findings such as:
GameFi funding increased by 83% compared to 2021, with $5.4B in investment compared to $2.9B.
Despite the bear market, big-name studios either continued to, or began to, venture into GameFi.
The biggest fundraising event happened in April when Epic Games, the studio behind Fortnite, raised $2B led by Sony for its metaverse project.
BNB attracted the largest number of new projects in total, with 296.
Game + Finance = GameFi
GameFi is a portmanteau of ‘Game’ and ‘Finance’ and it refers to the intersection of gaming and decentralized finance (DeFi) using blockchain technology.
Many games have their own native tokens that play an essential role in the functioning of the in-game economy, but also serve a purpose in the wider DeFi and Web3 ecosystem.
GameFi allows users to earn digital assets for playing and engaging with games. These digital assets typically come in the form of cryptocurrencies, non-fungible tokens (NFTs), and other blockchain-based rewards.
GameFi projects aim to provide a way for gamers to monetize their in-game assets and skills. This incentive not only helps users to become invested in the game and its world, but is also creating new avenues for people to earn income. Similar to the user-generated content approach of Web2, in the Web3 sector of GameFi, this Play2Earn model is self-perpetuating.
Players are motivated to expend more time, effort and resources into playing their favourite games, which in turn results in a more vibrant in-game world and an increasingly engaged and active community.
Popular GameFi projects
There are a range of great blockchain-based games but some of the most popular include:
Splinterlands ($SPS token): A digital collectible card game in the vein of Magic The Gathering. Splinterlands operates on the Hive blockchain. Players earn crypto rewards by playing the game, buying and selling cards on the marketplace, and participating in various tournaments.
Axie Infinity ($AXS token): A blockchain-based game that allows players to collect, breed, and battle creatures called Axies. Players earn cryptocurrency rewards for winning creature battles, which can then be used to buy, sell, or breed new Axies.
My Neighbor Alice ($ALICE token): A multiplayer builder game that allows players to buy and own virtual land, create and customize their own virtual world. Players can earn ALICE tokens by completing quests, trading virtual assets and participating in the governance of the platform.
The role of NFTs in GameFi
NFTs play a crucial role in GameFi economies, as they are used to represent in-game assets, such as weapons, characters, armour and other virtual items. These NFTs can be traded on marketplaces, enabling players to monetize their in-game assets and earn income from their gameplay.
The Play2Earn model is a popular incentive for users to get involved in GameFi projects. In this model, players earn rewards in the form of cryptocurrencies or other assets, which they can then trade for real-world currency. This creates a way for gamers to earn income while playing games, creating a new source of income for people with gaming skills.
Overall, GameFi projects are creating new opportunities for gamers and providing a new avenue for the adoption of cryptocurrencies and blockchain technology. They are helping to bridge the gap between traditional gaming and decentralized finance, and have the potential to become a significant part of the wider cryptocurrency ecosystem
Top GameFi projects to put on your research list
There are some exciting new GameFi projects launching on Binance this year. Put these on your research list to stay one step ahead in 2023:
RobotEra: In this sandbox-like planet-building metaverse game, players are robots, managing their own land and contributing to the creation of the world with multiple revenue streams.
Meta Masters Guild: Promising to be the largest mobile gaming guild in Web3 with a plethora of fun games and playable NFTs.
Tamodoge: Tamagotchi but DeFi - this memecoin Play-to-Earn platform will allow users to mint, breed and battle their your own unique NFT pet in the metaverse
Calvaria: An epic Play-to-Earn battle card game where users duel, earn and upgrade their cards to become the ultimate force on the battlefield.
Battle Infinity: This GameFi platform is a whole ecosystem hosting numerous P2E battle games that are integrated with their metaverse world called 'The Battle Arena'.
~ Zac Colbert, The Crypto Journo
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