GameFi’s Big Year by the Numbers: What Does it Mean For Filipinos?
This year, GameFi has become one of the fastest growing trends in not only the crypto space but also the gaming industry. Find out the figures and statistics behind GameFi’s biggest year and why it’s here to stay.
According to DappRader, blockchain games have generated as high as $480.7 billion in transactions this year.
In July 2021, the leading GameFi project Axie Infinity posted a daily revenue of $18.48 million, surpassing the daily revenue of Tencent’s top mobile game "Honor of Kings.”
The top 100 game companies accounted for 94% of the gaming industry’s total revenue in 2020. GameFi provides an opportunity to reconstruct the relationship between players and developers.
According to DappRader, blockchain games have generated as high as $480.7 billion in transactions this year. From March to July, daily active wallets on GameFi increased by 700%. In July alone, the blockchain gaming market exceeded 780,000 players and attracted almost $1B dollars, a staggering increase compared to $72 million from the previous year.
Recently, Axie Infinity surpassed NBA Top Shot, setting a record high cumulative transaction volume that exceeded $1B dollars. On August 18, AXS had a market cap of $4 billion and a 132% price increase since the start of the year. However, AXS has also generated more gas fees this July compared to other popular cryptocurrencies like Ethereum and Bitcoin.
According to Token Terminal, a DApp data statistics company, Axie Infinity protocol had 4.2 times the revenue of the 2nd to tenth in the total network protocol revenue combined. In July 2021, the leading GameFi project Axie Infinity posted a daily revenue of $18.48 million, surpassing the daily revenue of Tencent’s top mobile game "Honor of Kings.”
Blockchain Games vs. Traditional Games
Many traditional games use a freemium model, combining free-to-play with premium items and features at an extra cost. Some examples include the Japanese mobile game, "Ni No Kuni: Cross Worlds," the famous "Pokémon Go," and the highly profitable "King of Glory." These games were able to generate a revenue of $100 million in eleven days. Game developers earn income through selling game props. However, one drawback is users may feel forced into paywalls hindering their progression.
There are other traditional games like "Roblox," which allows users to create their own games and items which can be sold to other players for in-game currency. However, users still don’t have full access to their creations and are unable to transfer them across different ecosystems. The game companies collect most of the revenue and player interests aren’t a top priority. With blockchain games, all the in-game rewards are encrypted assets that people can freely buy or sell on the chain. Almost all or most of the income is for the players. For game developers, the industry is heavily concentrated at the top. Half of the market share is controlled by NetEase and Tencent, creating immense pressure for both medium and indie game developers. The cost of getting customers has continuously increased while the pay rate and profitability are minimal in comparison.
In 2020, the top 100 game companies listed an increase in their total revenue by 23%. These businesses accounted for 94% of the gaming industry’s total revenue for that year. Blockchain games provide an opportunity to reconstruct the relationship between players and developers.
Axie Infinity’s Economic Model
While Axie Infinity has an economic model that is self-sufficient and logical, the tokens generated from in-game activities come from a completely closed financial loop.
SLP Supply and Demand
Axie battles have produced more SLPs than the amount of burned SLP for breeding pets, causing an imbalance in supply and demand. Players who spend the price for breeding pets can suffer losses in an asset that can lead to an unwanted chain reaction.
Axie Infinity has an economic model that the crypto market can profoundly affect the price of SLP and AXS. It is not just about the game. If you want to improve your capabilities in defending risks, the official has considered the continuous enrichment of the game scene that enhances the value of the NFT pet Axie.
Axie has many updates in the works, including resource recycling, workshops, land games, increased AXS income (AXS pledge) and increased SLP and AXS liquidity (Ronin on-chain DEX). With these measures, the story can enrich the economic model's income and allow asset liquidity to become uninterrupted.
According to Nezoo’s Global Game Market Report, there are more than 3 billion gamers. By 2024, that number is projected to increase to 3.32 billion gamers, with game revenue reaching up to $218.7B.
GameFi is one of the best ways blockchain can get into the mainstream world. It enables people to see that revenue, IP, and entertainment can vaguely combine and break boundaries. GameFi chain games have a future that can provide hope and break down the walls of the conventional gaming industry.
Join the GameFi Bull Market in the Philippines with Axie Infinity on Binance Smart Chain NOW.