Games

GameFi industry to see $2.8 billion valuation in six years

The GameFi industry holds massive potential for growth within the next six years, according to a recent report.

A recent report from Absolute Reports projects massive growth for the GameFi industry within the next six years. 

The research has the play-to-earn nonfungible token (NFT) game industry with an estimated value of $2.8 billion within the time span from 2022–2028. Moreover, the compound annual growth rate of the industry is 20.4% in the same six-year period.

This forecast comes in the midst of a raging crypto bear market, which leaves little room for projects and industries with no substance. The report highlights the leaders in this field of play-to-earn game development which include Sky Mavis, Dapper Labs, Decentraland, Immutable and The Sandbox.

Furthermore, it breaks down GameFi by type, console and market region.

Though it’s not only the report which points to a favorable future for the Web3 gaming industry, as research from Cointelegraph also highlights interest from venture capitalist investors during the down season. For example, Animoca Brands recently acquired three companies within the GameFi space.

Another analysis shows an uptick in users of blockchain-based games despite market conditions. Both WAX and Binance Smart Chain saw steady community numbers with 2.94 million and 2.49 million users.

During market downturns, projects that remain carry with them a level of apparent utility. Blockchain-based games are a simple, accessible, and engaging way for this to be seen. It is for this reason that gaming has always acted as a gateway for new users to interact with the crypto space.

However, as Web3 continues its development, experts highlight that GameFi will need to adapt as well. In a recent conversation with the founders of Crypto Raiders, they urged developers to prioritize fun over “financialization” when continuing to develop platforms.

Chipotle takes ‘buy the dip’ literally with new $200K crypto giveaway

The restaurant chain will give away Bitcoin, Ether, Solana, Avalanche and Dogecoin through an online game.

United States-based fast casual restaurant chain Chipotle has started an online game which will give customers the chance to win more than $200,000 in crypto.

In a Monday announcement, Chipotle said that, through July 31, fans would be able to play its “Buy The Dip” game using their rewards accounts. The company will give away $45,000 in Bitcoin (BTC), $10,000 in Ether (ETH), $13,750 in Solana (SOL), $14,250 in Avalanche (AVAX) and $14,250 in Dogecoin (DOGE) via the game.

“We want to build the next generation of Chipotle fandom by connecting with the Web3 community,” said Chipotle chief marketing officer Chris Brandt.

The restaurant chain gave away $100,000 in BTC in April 2021 as part of a promotion for National Burrito Day. In June, Chipotle announced its roughly 3,000 restaurants in the United States would accept 98 cryptocurrencies as payment through digital payment provider Flexa.

Other major fast food chains in the U.S. have organized similar crypto giveaways as the space grew. In November 2021, Burger King partnered with Robinhood to give away BTC, ETH and DOGE as part of customers’ purchases. McDonalds’ China arm started a campaign for customers to win 188 nonfungible tokens in celebration of its 31st anniversary, while its U.S. operations later filed multiple trademark applications suggesting an entry into the Metaverse.

Related: How can the Metaverse help the food industry?

Many users have been buying dips in the price of Bitcoin following significant volatility in the entire crypto market. Chipotle said it would give prizes based on the exchange rate on the day of the award rather than at the end of the campaign. ProShares, on the other hand, recently began offering investment vehicles with exposure to shorting BTC amid many reports a crypto winter had arrived.

Blockchain-based games see an uptick in users despite bear market conditions

Data shows blockchain-based gaming protocols registered a steady uptick in daily active users and transactions despite the current bear market conditions.

Bear markets are always tough, but one of the positives is they clear the clutter and this allows legitimate projects to stand out. 

While most investors are focused on the latest centralized finance (CeFi) and decentralized finances (DeFi) scandal, the blockchain gaming sector has quietly weathered the storm better than other niches of the market.

Total number of unique active wallets interacting with smart contracts. Source: DappRadar

As shown on the chart above, all sectors of the market have experienced a noticeable decline in active users, but the gaming sector has proven to be the most resilient at retaining users as the bear market intensified.

Transactions continue to rise

Further proof of the continued engagement by gamers can be found by looking at the number of transactions occurring in the top sectors of the market.

Total number of transactions sent to smart contracts. Source: DappRadar

With a current count of 173.17 million, the number of gaming-related transactions is significantly higher than any other sector of the market, with the second closest sector being decentralized finance with 8.86 million.

As for which protocols contribute the most to the transaction count, WAX, Hive, BNB Smart Chain (BSC), Solana (SOL) and Ronin are the most active, led by WAX with a current transaction count of 158.23 million.

Total number of transactions per protocol. Source: DappRadar

While the total value transacted remains dominated by exchanges, a growing number of users currently active in the crypto ecosystem can be found in the gaming sector.

WAX and BSC attract new users

Data shows that users are specifically drawn to WAX and Binance Smart Chain, which saw 2.94 million and 2.49 million users.

Total number of unique users per protocol. Source: DappRadar

Alien Worlds on WAX and BNB Chain currently holds the top spot with 196,700 users, followed by Splinterlands with 147,820 active users. It’s also worth noting that the top three games in terms of active users operate on WAX.

Top 6 games by the number of active users. Source: DappRadar

While it has fallen far down the list, Axie Infinity (AXS) has consistently been one of the most active games for the past year and a leader in terms of the value transacted.

Related: Volumes surge 205% in Axie revival as co-founder claims project is ‘healing’

Despite the sharp correction in blockchain gaming-related altcoins, gaming has proven to be one of the more resilient sectors in terms of retaining active users.

This fact, combined with the rising popularity of the gaming industry, suggests that it’s one sector that has the potential to lead the way into the next bull market.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Play-to-Earn vs. Move-to-Earn explained

The key differences between play-to-earn and move-to-earn explained. Are you ready to earn money while you play and move?

P2E vs. M2E Games

The key differences between P2E and M2E are the rewarding system and the revenue model. 

As you can tell, there are some differences between the P2E model and the M2E model. Both of them are so much more than virtual gaming, that’s for sure. 

P2E is expected to transform from a trend to a mature concept. The gaming industry is exciting, but it should not be forgotten that relaxation and community engagement should remain central. Real gamers care more about the game and the graphics than about the revenue model.

M2E is also gaining momentum in the scene. For users who struggle to get enough exercise, a revenue model could be just the motivation they need. However, the move-to-earn concept is still at the beginning of its journey, so we will have to wait and see what the future brings.

What are the examples of move-to-earn (M2E) games?

Examples of move-to-earn games are STEPN, Sweatcoin and MetaGym.

As the move-to-earn industry is getting bigger and hotter, it’s time to make you familiar with some of the M2E games. The most well-known example of M2E is probably the Solana-based move-to-earn project STEPN (GMT). 

STEPN is a Web3 lifestyle app with integrated SocialFi and GameFi functions. The project is born to make users healthier and wealthier by putting each foot in front of the other. Founders are really aiming to be the number one M2E project in the Metaverse space and even won the Solana Ignition Hackathon in 2021. 

If users want to start using STEPN, they need to invest in a pair of STEPN sneakers by buying an NFT. When you accomplish the first step, it’s important to move and track your steps with GPS. The earned in-game valuta can be exchanged for crypto later on. 

The second project is kinda similar to the first one: Sweatcoin. Users earn their coins by running, walking and most of all: sweating. Every 1000 steps you take will get you a reward in SWEAT, the platform’s native currency. 

With their slogan, “It pays to walk,” they want to decrease the billions of dollars of cost in healthcare by making people healthier. Users can exchange the rewards they earned for products, make a donation or convert them into a currency of their choice. 

The last example of the M2E projects is MetaGym. MetaGym is easy to join with the possibility to earn money while moving your body through an app and even a smart-watch application. Users get to utilize GameFi, FitFi and SleepFi functions while making themselves sweat to earn MetaGym Coin (MGCN), the platform’s own token. 

MetaGym wants to help the world become a healthier place, but they’re not afraid to give you the chance to earn some money while doing it. Users earn cryptocurrencies while completing tasks like finishing cardio or strength training or getting some satisfying sleep.

What are move-to-earn (M2E) crypto games?

Move-to-earn combines moving, gaming and earning crypto on the blockchain.

Move-to-earn boomed during the height of the COVID-19 pandemic. People were mostly at home, sitting and spending their time behind the screen. Since it’s essential to move frequently for your health, M2E got really popular. It’s a new way to reward users for getting up and starting to move while using technology. Every move you make, you will earn cryptocurrency. 

Maybe over the years, this M2E trend will transform into FitnessFi instead of GameFi, because of this concept’s potential and people’s willingness to be healthy and stay active due to the health problems created by the recent pandemic.

What are the examples of play-to-earn (P2E) games?

Axie Infinity, Aavegotchi and The Sandbox are examples of play-to-earn games.

One of the most known examples of crypto games is Axie Infinity which is based on the Ethereum blockchain. It’s a combination of video gaming and blockchain gameplay elements. On some days when the economy was thriving, the NFT marketplace was a booming business. Millions of dollars were being traded and Axies, the magical creatures, were being sold for thousands of dollars each. 

Aavegotchi is another example of a P2E game. It describes itself as an open-source community-owned NFT gaming protocol. Users can go on adventures as pixelated ghosts, which is reminiscent of the Tamagotchi games. You can earn tokens with minigames, trade Aavegotchis or start with rarity farming. 

Another game in the P2E industry is The Sandbox. This platform offers its users a unique game experience that gives them a sneak peek of what the Metaverse probably will look like. Users can play, create, build and own the future. While enjoying the immersive experience, users can monetize the game by creating, investing and earning in-game assets.

Related: What is Vulcan Forged (PYR) and how to make money playing it?

What are play-to-earn crypto games?

Play-to-earn (P2E) crypto games are giving users the opportunity to earn in-game assets that can be exchanged for cryptocurrencies.

P2E is a new component of the GameFi ecosystem. Normally, users are gaming online while using apps or websites like Minecraft and Roblox. But, the P2E trend takes it all a little bit further. 

By using blockchain technology, it’s possible to combine gaming with the benefits of crypto. Traditional gaming allowed participants to relax, enjoy the graphics and spend some time off with friends. From now on, you can enjoy gaming with another important aspect of life: earning money. 

It’s essential to play on a blockchain to earn crypto tokens or nonfungible tokens (NFTs). Additionally, you don’t necessarily have to invest in expensive NFTs to earn crypto and be part of the in-game economies and business models. 

Related: How will GameFi and P2E blockchain gaming evolve in 2022? Report

Former head of TikTok gaming leaves Web2 to build core Web3 protocol

Jason Fung said he hopes to solve interoperability problems with Metaverse development through his new company Meta0.

Cointelegraph had the opportunity to chat with Jason Fung, former head of gaming at TikTok, about his new company Meta0, why he decided to make the leap into Web3 and what he feels the future has in store for him. 

The former gaming head expressed an elevated level of excitement, proclaiming that it was Day One for the fledgling Metaverse technology startup. Fung explained that he plans to bring his wealth of knowledge and experience in gaming and software development to achieve a grander version of what the Metaverse could be.

“Many Web2 companies are trying to figure out how metaverse fits into their business models. What does it mean to transfer the ownership of assets to users and to be more decentralized? Is it worth the risk associated with giving up control and ownership? There are legal considerations among others to think through before moving that direction.”

Fung said that Meta0 aims to encourage others in the Web2 space to begin making moves into Web3 and join the effort to build the Metaverse while solving real-world problems.

Related: Nifty News: NFT and Web3 gaming console to launch in 2024, Chinese firms to check ID for NFT buying and more

His career focus has been on tournament platforms and esports, though he worked on mini-games and created new player experiences while at TikTok. He explained that his deep interest in gaming and blockchain helped him to identify the issues facing Metaverse development in its current iteration.

He spoke about interoperability as one of the major issues facing the Metaverse, namely between implementations, protocols, technologies and companies involved with developing this space.

When asked about the newly announced Digital IF Interoperability Consortium, he called it a step in the right direction, noting that there are very few standards at the moment. Fung told Cointelegraph, “We want to make blockchains to work together and communicate with one another. We evaluated what are the pros and cons of different blockchains and the best use cases for interoperability.”

“Meta0 allows game developers to build different parts of their games on different blockchains simultaneously. Cross-chain interoperability will come into play. Some of the developers we are talking to now appreciate our multi-chain game development approach.”

Meta0 is also working closely with Waves Labs, the growth engine for the Waves Ecosystem, in an incubation program to help raise awareness and assist the new company and its initiatives. Fung said that they are set to announce a Waves Fund in the near future. He commented that Waves is a great incubator, making dreams and realities come true.

Meta0 hopes to bring games to Web3 in an effort to solve the interoperability issues currently seen in the Web3 space. For developers, this means an API and SDK that can integrate directly into games. For gamers, it means easier access to Web3-based gaming. For Jason, he told Cointelegraph it means a bright new beginning, saying “There is a lot more to tell of this story.”

Mind games: Bitcoin education at an escape room in Lebanon

At a Bitcoin-themed escape room in Lebanon’s capital Beirut, it’s all fun and games until you take the orange pill.

Bitcoin (BTC) sets people free. At least, that was the story at Lebanon’s first Bitcoin-themed escape room in Beirut. 

Lebanese Bitcoiners from the group Bitcoin du Liban took on the latest Bitcoin education challenge — Bitcoin Escape the System. The best part? The team of four snuck out of the escape room in the fastest time to date.

For the uninitiated, an “escape game” or “escape room” is a team game where players work together to solve puzzles, clues and conundrums usually based on a theme such as spies, zombies and now, Bitcoin. As per the name, the mission is to “escape” the site of the game within a certain time.

Sooly Kobayashi, MENA advisor for Swan Bitcoin and a moderator at Bitcoin du Liban, told Cointelegraph that “All of us (except one) had never played escape rooms before. We entered the room without relying on our Bitcoin knowledge.”

However, they likely had a slight advantage over those new to Bitcoin. The escape game’s themes revolve around fiat money, time-chain technologies (commonly referred to as blockchain), SHA-256 (the Bitcoin hashing algorithm) and self-custody.

The escape artists: @marco_bdl @Sooly_Kobayashi @Thomssmn @al3apodcast @BitcoinduLiban. Source: Sooly Kobayashi

While the escape game is a bit of fun, according to Sooly, it’s another example of the Lebanese Bitcoin community’s creative approach to onboarding more Bitcoiners. Sooly, who is also a moderator at Bitcoin du Liban, told Cointelegraph that “education is challenging in a country that hasn’t invested much in this sector.”

“And with a history filled with instability, the Lebanese population has been busy surviving in economic restlessness. Hence, Bitcoin education needed a creative modern approach.”

As shown in the following graph, government education expenditure in Lebanon pales in comparison to that of Argentina; a country that also sufferers from critical problems relating to inflation and instability. It’s therefore on the people to take financial education, and creative orange-pilling techniques, into their own hands with grassroots activities.

Source: Sooly Kobayashi

Indeed, Bitcoiners from Lebanon to Slovakia are taking Bitcoin education by the scruff of the neck, seeking to spread the word of sound money. Bitcoin books, games and even family-friendly days out are spaces for Bitcoin veterans or those new to the tech to learn in ways that suit them best.

The team solving one of the puzzles during the escape game. Source: Kobayashi

For the escape game, due to the at times high-stress, adrenaline-fuelled nature of escape games (if you know, you know), it’s possible that participants absorb information quicker and retain it longer. As a result, a Bitcoin-themed escape game could be a quirky yet quick way of educating people about Bitcoin. Sooly explains:

“It’s been scientifically proven that humans learn better in two scenarios. First, when we are emotionally driven. […] Second, when we are expected to pass on information to someone else, our minds tend to focus and memorize knowledge better.”

Related: Jack Dorsey and Jay-Z collaborate on Bitcoin Brooklyn educational program

To date, the escape room founder, Said Nassar, an international business engineer, had only seen a “few” Bitcoiners play the game. Despite the Bitcoin-friendly appeal, the game had been enjoyed by newcomers to Bitcoin, or “no-coiners,” as they are sometimes known. 

Sooly adds that some of the players are “shitcoiners,” including individuals interested in Ethereum (ETH):

No one would play this escape room and not learn about Bitcoin.”

For some Bitcoiners, there’s an irony to exiting a Bitcoin escape room. To some, the whole world may already feel like an escape room, and Bitcoin is the only way out. The Bitcoin Escape the System joins a fledgling list of Bitcoin-themed escape rooms, including The Bitcoin Heist in Macedonia, and the DIY Bitcoin escape room, Badass Daddy’s Bitcoins. 

P2E gaming is in a rut, but Axie Infinity (AXS) could rebound for 3 key reasons

AXS could recapture its former glory if market participants view the launch of land staking, increasing activity on the Ronin bridge and upcoming roadmap targets as bullish catalysts.

Play-to-earn gaming was one of the breakout sectors of the cryptocurrency market in 2021 and the trend was led by Axie Infinity (AXS), a mobile, blockchain-based game where users collect, breed, raise and battle nonfungible tokens (NFTs) called Axies for monetary rewards. 

As the market topped and then entered what has become a deep bear market, AXS price retraced from an all-time high near $170 to its current price at $15.20 following several setbacks, including a $600 million hack of the Ronin sidechain that hosts the game. 

AXS/USDT 1-day chart. Source: TradingView

Currently, the future of P2E gaming remains in question and advocates are watching closely to see if this former unicorn had turned the ship around. Let’s take a look at some of the developments taking place within Axie Infinity and determine whether any of them are bullish for the short and long term.  

The launch of land staking

The most recent development to arise out of the Axie Infinity ecosystem is land stake parcels as a method for earning AXS tokens.

Based on the stats provided by the Ronin Chain explorer, land staking has been popular among holders and at least 87% of each of the different levels of plots have already been staked.

Axie Infinity land statistics. Source: Axie Infinity

In addition to the success of land staking, several land plots recently sold for over 130 Ether (ETH) each, which suggests that the level of interest in the game is still high.

While land owners have been excited about the new income opportunity, some community members have concerns about what effect the daily rewards of 11,194.62 AXS will have on the price of the token as the supply inflates.

The platform also offers AXS staking with a current yield of 72%, but only 38.47% of the current circulating supply is being staked, which indicates that a majority of the supply is available in the open market and could potentially be sold off.

The Ronin bridge reopens

The recent reopening of the Ronin bridge could also be another positive sign for Axie, especially considering that it had been disabled following a $600 million hack in March of this year.

According to Axie Infinity, the assets on the bridge are “fully backed 1:1,” and the project added 11 new validators, circuit breakers and the two external audits were completed. All user funds that were lost have been reimbursed, making members of the community whole.

The reopening of the Ronin bridge and the launch of land staking has had a noticeable effect on the volume transacted, according to data from DappRadar.

Axie Infinity statistics. Source: DappRadar

These developments have also prompted a slight uptick in the number of daily users and transactions on the network, but these figures remain well below the 2021 highs of 744,000 users and 6.7 million transactions.

Related: Battle-hardened Ronin bridge reopens following $600M hack: Finance Redefined

The community responds positively to the current changes

Community reactions to the recent developments have been mostly positive, with many eager to re-engage with the game now that it has finally moved past a few major bumps.

According to early Axie Infinity investor and Cointelegraph contributor Alyssa Exposito, “land staking has brought about a surge of energy that the community needed after we lost a huge amount in the treasury fund.”

Exposito also mentioned the Axie creator program that enables community members to build out games on the software development kit (SDK) as something that is exciting users of the platform, “Especially with the integration of RON as a means to engage and transact on the network.”

Exposito highlighted the ecosystem’s effort to get community members more involved with governance and building on the protocol as the developments that the community is most excited about.

Exposito said,

“I think once people begin to see and take notice of how the project enables and helps fund other creators to build on top of it, it’ll gain more traction on the possibilities of blockchain gaming.”

The main concerns discussed by members of the Axie community revolve around the circulating supply of AXS, how staking rewards affect the circulating supply and price, and the various token lockups and vesting schedules that could lead to large sales and price dumps in the future.

Generally, the protocol has taken the necessary steps to recover from the Ronin hack and it seems to be keeping up to date with the major milestones outlined on its roadmap. Aside from what the project can do internally, its fate is largely tied to the fate of the P2E sector as a whole.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Here’s how the Metaverse enables inclusivity for genderqueer people

Avatars in the Metaverse are slowly becoming queer-friendly as adoption grows and more projects cater to people with gender dysphoria.

In the wake of the rising popularity of games like Fortnite, Roblox and Minecraft and the concept of the Metaverse, the ability of “avatars” to escape unpleasant realities, or simply have fun, is emphatically relevant. It warrants a discussion on digital citizenship and the “inclusivity” of individuals and their identities in the virtual realm, and it provides new meaning for those with gender dysphoria or who identify as genderqueer.

In the real world, there is a known bias against those who do not identify with the sex assigned to them at birth. According to a recent study, approximately 2.7% of adolescents in the United States identify as trans or gender diverse. Extrapolating this to the global population, more than 200 million people likely fall into this category and come under pressure from societal exclusion, suppression of identities and marginalization, as well as a lack of awareness, access to facilities, security and safety.

Recent studies have also revealed the therapeutic abilities of gaming avatars for many queer people, who suffer from higher rates of anxiety and depression due to the need or obligation to identify their gender, as there are people who prefer not to do so.

Related: Pride in the Metaverse: Blockchain tech creates new opportunities for LGBTQ+ people

What does an avatar really bring to the table?

An avatar is a digital human representing you in a virtual space that you can share with other individuals for various types of experiences. It is a personalized graphical illustration, character or alter ego representing a user on their computer. In many ways, creating an avatar is a good way to solidify one’s own personal image or persona. The designs of these alter egos have been accentuated by the growing market for games that create roles for individuals participating.

An avatar functions as a digital place where transformations occur, and it becomes a location for desires. The virtual body acts as a person’s digital twin and remains closely connected to their physical body, which becomes the basis for the virtual body’s identity. An avatar can be represented either in a 3D or 2D form, depending on the platform the person is on.

Customization is key

For people still trying to figure out their own gender identity — or affirming one — the avatar’s appearance becomes an important starting point to test out who they really want to be. Hence, being able to customize the avatar is key and facilitates gender identity expression and consolidation. This gives people a good way to explore and validate their identity.

When choosing an avatar’s appearance, we make some aspects of our desires visible. Gamers and Metaverse residents alike have the ability to choose their gender and select from a dozen preset options for body type, facial features, expressions, hair color, facial hair and more. Metaverses and games are also providing gender-neutral clothes, preferred names and the use of pronouns. These customization options give users the liberty to act in the manner they truly feel in real life.

This is far from what they can experience in real life. So, in many ways, an avatar facilitates the process of identity creation by providing diverse possibilities that are reflective of a user’s gender expression. This unique method of curating one’s avatar is the real freedom of expression without any discrimination.

Related: Digital identity in the Metaverse will be represented by avatars with utility

Identity consolidation

An avatar can have a fluid identity. This means that a user can change their avatar’s appearance, gender and personality at will. This allows a person to physically emulate what they want to be in the future. For many people, coming out as a queer is preceded by a private acknowledgment of their identity. This virtual embodiment is, in manner, practicing and anonymously testing out the gender they really experience.

This can be constantly refined with more virtual experimentation and help finally consolidate their identity for real-world interactions. Genderqueer people can also anonymously meet and interact with similar people and create online support networks. Games can also enable an avatar to create stories and improvised interactions with other players, thus helping in setting up a real-world scenario.

Moving with yourself

This journey to self-realization and gender identity primarily affects young people. An avatar gives them the option of working with themselves in the virtual world to understand their true nature and build on that identity. A tool to create real-looking avatars, such as Buddy from Trace Network, can enable a person to choose their identity and consolidate their own real likeness in the future, complete with gender, body type, gender-neutral apparel and more.

An avatar in a game or metaverse allows users to explore, develop and rehearse their identities in a relatively safe environment without facing discrimination, negative encounters, bullying or isolation. This is the best way to start as “out” and express oneself without fear and with head held high!

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Lokesh Rao is the co-founder and CEO of Trace Network Labs and has over 12 years of experience in the enterprise tech space, helping global fashion companies acquire and implement technologies in more than 20 countries. Since 2017, Lokesh has been actively involved in building solutions for enterprises using DLT and blockchain. With Trace, he is building a technology platform that will enable lifestyle brands to launch multichain and multiverse products, using NFTs for “digital twins” — aka user avatars in the metaverse.