Unraveling the potential catalyst that could usher in the next wave of crypto enthusiasts.
As the crypto community maneuvers through the challenges of the ongoing bear market, the quest to attract new users becomes paramount. Among the myriad options under consideration, one contender has captured the attention of the crypto squad and other aficionados – Gaming.
Crypto gaming offers a distinctive set of advantages over traditional games, introducing concepts like ownership of in-game assets, the ability to earn real income, and seamless cross-game interoperability.
The allure of this potential was underscored towards the end of the 2021 bull run, primarily fueled by the success of Axie Infinity. While Axie’s Play-To-Earn (P2E) model faced challenges due to token inflation, it undeniably sparked heightened interest and investment in the sector.
Despite the bear market’s dampening effect on initial hype, the crypto gaming space has quietly evolved and matured in the background.
Types of Games
1. Web 2.5 Games
– Target Audience: Mainstream gamers
– Features: Traditional gaming experience with integrated crypto elements, such as NFT-based in-game items.
– Examples: Deadrop, Illuvium, The Fabled.
2. Web3 Games
– Target Audience: Existing crypto users
– Features: Core gameplay loop and experience tied to crypto, often requiring interaction with a blockchain.
– Examples: Axie Infinity, Worldwide Webb, Pixels, The Beacon.
3. On-Chain Games
– Target Audience: Crypto power users
– Features: Entire game logic resides on-chain via smart contracts, offering unique properties like composability and immutability.
– Examples: Dark Forest, Lattice’s OPCraft, StarkNet’s Influence and Realms.
Types of Gaming Assets
1. Console Tokens
– Function: Tokenized gaming ecosystem, serving as currency within the gaming ecosystem.
– Examples: IMX (Immutable X), RON (Ronin Network), MAGIC (Treasure DAO), Prime (Echelon), GALA (Gala Games).
2. Individual Game Assets
– Features: Varied assets within each game, including governance tokens, rewards tokens, PFP collections, utility NFTs, and more.
– Approach: Optimal exposure strategy differs for each game based on its unique design.
– Risk: High-risk, high-reward for investors, akin to the hits-driven nature of the gaming industry.
3. Supporting Infrastructure
– Role: Essential for a game and its economy’s success, including marketplaces, game launchers, developer tools, and asset issuance protocols.
– Opportunities: Limited for the average user but likely to expand in the public markets as the space matures.
Promising Game Ecosystems
1. Immutable X
– Features: Layer 2 gaming platform using StarkEx, providing gasless and near-instant transactions.
– Ecosystem: Games like Gods Unchained, Illuvium, Guild of Guardians, Ember Sword.
2. Treasure DAO
– Concept: Ecosystem connected by the MAGIC token, aiming to create a decentralized Nintendo.
– Games: Bridgeworld, The Beacon, BattleFly, ZeeVerse.
3. StarkNet
– Type: zkRollup settling to Ethereum.
– Games: Realms, Influence, and other on-chain games with low-cost transactions.
4. Other Gaming Ecosystems
– Examples: Ronin (hosting Axie Infinity), Myria, Polygon, Avalanche, Solana, and emerging ecosystems like Echelon, Trident DAO.
Playing the Long Game
The crypto gaming landscape is vast, catering to different audiences with distinct assets and promising ecosystems. This guide only scratches the surface, emphasizing the need to closely monitor gaming developments in the months ahead.
While the timing of the industry’s boom and the standout winners remain uncertain, keeping a vigilant eye on the gaming sector is a wise move. The nascent space holds immense potential, and the coming months could reveal transformative shifts and opportunities within the crypto gaming realm.
