Blog NFTs GameFi: The Future of Gaming or Doomed to Fail?

GameFi: The Future of Gaming or Doomed to Fail?

date June 2, 2022 time 5 min read 237 views

You’ve probably heard of DeFi, and you’ve almost certainly heard of gaming. Well, now we have a way to merge the two of them together, and it’s called GameFi: A decentralized way of gaming that’s full of earning opportunities. Let’s take a look at whether it’s likely to stick around.

The bullish crypto market between 2020-21 and the number of gamers left with time on their hands during the pandemic provided the perfect opportunity for crypto gaming to flourish, and so GameFi was born. Yet as the world moves on from the pandemic and the May ‘22 crypto crash, the industry is facing some challenges—will it survive?

We’ll run through what GameFi is, some of the top GameFi projects in the market right now, and whether we think it has a future.

What is GameFi?

As the name suggests, GameFi merges gaming and finance. What’s less obvious is how this is possible. GameFi platforms give players the chance to make money online as they play. If you spend a lot of time in the crypto space, you might have come across play-to-earn games already, and the two concepts have a similar meaning.

If you’ve ever dreamed of being paid to play games, learning what GameFi is should be a game-changer.
If you’ve ever dreamed of being paid to play games, learning what GameFi is should be a game-changer. (Source: Unsplash)

Most of the time, you earn money in GameFi projects like completing certain tasks, such as winning a battle, but it’s sometimes possible to make passive income too. Plus, GameFi may incorporate other staples of the blockchain world, including mining, staking, and yield farming.

Although almost every game that has ever existed gives players a way to earn some kind of in-game token they can exchange for items—even Sims can go to work and earn “money”—GameFi is different because you can take its tokens out of the game and into the real world. You can then convert them into other cryptocurrencies or even fiat currencies.

This is possible due to the incorporation of non-fungible tokens (NFTs). Players can receive their “rewards” in the form of NFTs as they play, then exchange them for cryptocurrencies on NFT exchanges, after which they can use the funds as they wish.

Top GameFi projects

If you’re excited about the prospect of GameFi, you probably want to know where to put your money—or where to start gaming yourself. Here are a few to watch.

Axie Infinity

Axie Infinity is one of the hottest games in the crypto world right now, if not the hottest, with its native token AXS now in the top 50 cryptocurrencies for market capitalization. It’s partly responsible for getting the GameFi trend going in the first place.

On Axie, gamers purchase “monsters” in the form of NFTs and use them to battle against other players. The winners then receive rewards in the form of SLP tokens (or sometimes AXS tokens depending on their rank). There are other ways to earn money too, such as “breeding” the NFTs they already have or lending the NFTs they bought out.

Stepn

Stepn is a little newer on the scene than Axie Infinity, but it’s quickly established a name for itself. The novel concept merges reality with the metaverse: Gamers purchase NFTs that represent different sneakers, and then download the Stepn app on their phone so it can track their exercise (in a similar way to a tracker app like Strava). The more they exercise, the more they earn—assuming they bought the right sneakers.

Stepn is one of the most exciting GameFi projects around right now.
Stepn is one of the most exciting GameFi projects around right now. (Source: Stepn)

Similar to Axie, there’s a way to “mint” your sneakers to create more NFTs, and Stepn may be launching a way to lend out sneakers in the future.

Xchange Monsters

Xchange Monsters is a little different from Axie Infinity and Stepn because, rather than being another game that offers a way for its players to earn through a game, it’s an entire GameFi ecosystem.

It offers a platform that various game developers can launch their games, along with useful features like its own NFT marketplace, a payment gateway, a wallet application, and more. This makes it much easier for the game developers to launch their products. It also provides a great discovery platform for users who are just getting into GameFi, along with greater convenience. 

Does GameFi have a future?

Now, we come to the ultimate question: Is GameFi just a passing fad, or is it worth paying attention to?

In the third quarter of 2021, NFT games made $2.32 billion, suggesting a bright future. It continued to attract investment in 2022, with many believing it could be the next DeFii and a key part of the metaverse. Yet despite getting off to a strong start, GameFi may now be facing some growing pains. 

After the crypto crash, some are panicking—like most other cryptocurrencies, the values of STEPN’s GMT and Axie’s AXS suffered. It may also face regulatory challenges along the way or resistance from those in the traditional gaming world. In November 2021, the CEO of EA Andrew Wilson said NFTs could be the future of the industry, but had to backpedal due to backlash from fans and his team, suggesting many are suspicious of GameFi and may view it as a way for dodgy teams to get some quick cash from investment. 

And as with any emerging market, it’s hard to pick winners at this stage. A new technology, platform, or project could pop up that blows everything else out of the water.

Yet unlike purely speculative crypto projects, GameFi platforms are offering something tangible.  People have always loved games in some form, so it’s fair to say that video games involving opportunities to make real money stand a good chance of surviving. Plus, as the market expands, they could have entire economies functioning within them—including wealthier players outsourcing their tasks to others for money.

If you find yourself siding with the believers, maybe we’ll see you in the metaverse some time.

Earn NFTs with MyConstant

GameFi is just one of the many applications of NFTs. That’s why, at MyConstant, we believe in the metaverse enough to have launched our own NFT offering. We’re also giving out NFTs and guidance on how you can score NFTs as rewards when you reach certain milestones.

We also have a range of cryptocurrency and USD products that can help you take your crypto further and earn interest on crypto up to 14% APR, or you can deposit your crypto in our multi-cryptocurrency wallet (and even earn interest on stablecoins).

Other benefits of our platform include:

  • 24/7 customer service.
  • Rates as low as 6%.
  • Early repayments for lower rates.
  • Instant matching.
  • Storing and borrowing against over 70 different cryptocurrencies.

Sounds good? Sign up today and receive a free $4,000 bonus trial.

Share this article

George Schooling

George Schooling

Buy MCT token with ease and enjoy the staking rate of up to 12% APR

Tags: what is gamefi gamefi projects

0 0 vote
Article Rating
guest
0 Comments
Inline Feedbacks
View all comments

Related Articles