One of the areas where the blockchain market is expanding the most, and where experts predict great strides towards mass adoption of these new technologies, is in the gaming industry. The global market for blockchain-based games reached a value of $128.62 billion in 2022, and it is expected to grow from $154.46 billion in 2023 to $614.91 billion in 2030.
This market growth has also been attributed to the COVID-19 pandemic, which forced much of the population to stay indoors for extended periods, resulting in a significant spike in gaming platform traffic and usage, as well as in the search for online earning opportunities, thereby introducing many people to the world of blockchain and cryptocurrencies.
Blockchain technology has revolutionized the gaming industry by opening doors to many opportunities, enabling transparent transactions and innovative gameplay mechanics. One of the most interesting factors that blockchain has introduced in this sector is undoubtedly the ability to earn while playing, paving the way for a new business model called “play to earn.”
The play-to-earn process, of earning while playing, is made possible through the tokenization of any game element (be it a character, an object, or a specific feature), allowing the creation of real assets, each of which will have real economic value. Each asset (which is effectively an NFT) can then be bought, traded, or sold at a market-imposed value, based on scarcity, utility, and supply and demand. Another play-to-earn mode that doesn’t solely involve tokenizing assets is the ability to receive rewards in cryptocurrencies, which are often native coins of the various platforms themselves, created to reward users and establish an internal “economy” within the game.
Among the play-to-earn games that have garnered significant attention and user base are Axie Infinity, Sandbox, and Stepn:
Axie Infinity is arguably the undisputed king of this category, with a game that involves battling one’s characters in an arena, which are non-fungible tokens (NFTs). In addition to the presence of NFTs, Axie is characterized by the presence of two tokens: an in-game token, Smooth Love Potion (SLP), which allows players to earn rewards from gaming, and a governance token, Axis Infinity Shard (AXS). Currently, the AXS token is used to pay fees for Axie breeding and for purchasing certain items within the game. Axie Infinity currently has around 300,000 active players, with over 2 million NFTs bought, recording record sales, some even reaching 300 ETH (approximately 1 million at the current exchange rate).
Sandbox, on the other hand, is the largest blockchain-based metaverse, boasting more than 853,000 unique players since its inception, with an average of 5,000 daily active users and even more than 30,000 during peak times. Sandbox also has its native token, SAND, which has a respectable market capitalization of $1.5 billion and has seen virtual land sales totaling billions of dollars since its inception.
Both of these games were created on the Ethereum blockchain. Now, let’s explore Stepn, a revolutionary app that has combined the worlds of gaming and fitness, launched on Solana. Users can earn NFTs and tokens simply by exercising, thus contributing to a healthier lifestyle and carbon neutrality. Using a dual tokenomics model, which includes the governance token GMT and the utility token GST, players must demonstrate physical activity to receive rewards in the form of these two native tokens and NFTs. At its peak, the game recorded approximately 100,000 daily active users, generating significant media buzz that also led to a collaboration with the renowned brand Asics and recently with Adidas too.
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