The research arm of the Huobi cryptocurrency exchange linked growing interest in blockchain-based games to the direct influence of GameFi’s development.
😍😍😍The latest research report:How New Institutional Economics Explains the Rise of #GameFi has been published.@HuobiGlobal
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— Huobi Research (@Huobi_Research) December 28, 2021
GameFi entails the use of NFTs, DeFi and other elements within the Play-to-Earn concept.
Experts noted that, at the end of 2017, the popular Ethereum-based game CryptoKitties reached peaks of 140,000 daily active users and 180,000 daily transactions. Yet within a few months both metrics fell by more than 90%.
Experts noted that from June 2021 there was a rapid rise of blockchain-based GameFi projects. As an example they cited the NFT game Axie Infinity. A few months after launch, its daily revenue reached $9.72 million, surpassing Tencent’s Honor of Kings.
“Dapp rankings show that five of the nine top applications are GameFi. Since the summer of this year, the number of unique users in the sector has surpassed DeFi,” the experts noted.
The Play-to-Earn concept is not new. It has long been part of the gaming industry, for example in World of Warcraft or League of Legends. Yet, in the researchers’ view, the success of the new generation of blockchain games is driven precisely by GameFi elements that enable transferring earned value into the real world.
Huobi Research highlighted the main factor of success: lower transaction costs within the in-game economy.
Experts from Huobi Research highlighted two main factors behind this: free trade in game items and in-game currencies. A third important element is securing ownership rights via NFTs.
“This is not only a competitive advantage that traditional game developers never had, but also a reflection of the true value of blockchain technology in the gaming industry,” said Huobi Research.
Earlier, the annual revenue of the Web 3.0 metaverse sector could reach $1 trillion in the near term, according to Grayscale Investment.