Play-to-earn games are the catalyst for this upward phase in the markets

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If you’re familiar with the cryptocurrency space and regularly keep an eye on what’s going on in the ecosystem, then you’ve felt the excitement during Bitcoin’s (BTC) rally to $ 63,000 in mid-April. This excitement is currently being caused by the bullish mood that crypto enthusiasts and stakeholders are currently in. And that bullish sentiment is a result of the gaming niche.

Lots of people say it’s Decentralized Finance (DeFi) season and I can’t even disagree with them any other way because the facts are there for all to see. DeFi-based, non-fungible token (NFT) games are pumping to record highs and they continue to get a lot of people to adopt them and play those games every day.

The answer is really simple. That’s because these people not only have fun playing, but they also earn rewards during playtime. Furthermore, these aren’t just in-game results, these rewards can be exchanged for fiat currencies and spent in real life. The video game industry is currently in a massive growth phase. Today the industry is valued at around $ 170 billion and is expected to grow to $ 268 billion worldwide in the next five years.

Related: Play and Earn is the secret to mainstream NFT gaming adoption

The play-to-earn phenomenon

I think game developers have found a sweet spot here with the play-to-earn model of gaming. First of all, what is this about? Play-to-earn simply gives gamers and gaming enthusiasts control and ownership of in-game assets, which allows these players to further increase the value of those assets by actively playing the game. Players in this business model create value for the game developers and other gamers by participating in the in-game economy. As a reward for participating, they will receive in-game assets. These assets range from in-game resources such as gaming tools, weapons or cryptocurrencies to other in-game assets that can be tokenized on the blockchain and even sold as NFTs. Because of this, the play-to-earn business model has proven itself when used with blockchain games. The total sales of the play-to-earn game Axie Infinity closed in July to 120 million US dollars. At the time of writing, the rest of the top ten apps on Token Terminal’s list totaled around $ 41 million, while Axie Infinity grossed over $ 215 million.

When players play the Axie Infinity game, they earn the indigenous Small Love Potions (SLP) token, and these tokens are required by players to breed new Axies that are topped up by Axie. Axie also charges a 4.25% fee for buying and selling Axies on the platform. Players can also choose to sell SLP tokens to other players on an open marketplace if they choose to cash out those tokens.

Play-to-Earn Games and Developing Countries

It sounds shocking and maybe even funny, but here’s the reality: an average gamer can earn around 4,500 SLP per month, which is around $ 1,200. As a result, people in countries like the Philippines and Vietnam are quitting their main jobs to devote themselves to playing Axie. The game is both time consuming and strategic. Not only do players need to carefully breed their Axies to develop certain skills, but they also need to earn energy that will allow them to keep playing the game by completing quests. It is worth noting, however, that there are workers in these countries who consider this a part-time job rather than a main job.

Axie states that there are more than 350,000 daily active players on the platform. This may sound ridiculous to some people, especially non-gamers, but the nice thing about it is that it has helped many people through the financial troubles caused by the ongoing global COVID-19 pandemic.

Related: Science fiction or blockchain reality? The OASIS “Ready Player One” can be built

Blockchain games, which started out as a small, home-like industry by individuals selling their products online, has quickly grown into a full-fledged industry providing jobs to people in developing countries. In order to maintain financial stability and regular paychecks, people in Venezuela have reportedly turned to gold farms in various games on the blockchain. They sell their digital assets to western gamers and this is mostly their main source of income.

Commenting on the recent boom in the play-to-earn gaming model, especially Axie Infinity, Orion Depp, managing partner of Master Ventures, said: their real finances until they tried. It just shows how life changing and revolutionary crypto continues to be, this time in a fun and entertaining way. “

I couldn’t agree with Orion’s position anymore. People are literally being rewarded for putting their time and effort into a game while having fun. It sounds so simple, but this is a game model that works and changes many lives. Some other examples of the play-to-earn model of games that are just as successful as Axie Infinity are Splinterlands, GamyFi, Step Hero, and CryptoBlades.

A few more examples

Splinterlands is a blockchain based card trading game in which players essentially compete for a limited number of Splinterlands native tokens Dark Energy Crystals (DEC) and rare NFTs. The game created in 2020 managed to build a really strong fan base. In a fantasy world made up of six mighty kingdoms battling for control of Splinterland, Game of Thrones fans will find it very easy to fall in love with this game. Just like with Game of Thrones, there is a prophecy that foretells the coming of a common and more powerful enemy who will force the six kingdoms to come together and fight for survival.

Splinterlands’ use of in-game collectibles and NFTs puts it in a very unique light, and since it’s built on the blockchain with an algorithm that prevents the results of fights from being tampered with (not even the game developers can touch it ), it’s considered one of the best play-to-earn games out there right now.

The company recently completed a private token sale that raised approximately $ 3.6 million, with industry leaders contributing to the token survey that revolved around the SPS token. Examples of crypto funds and players that have contributed include Enjin, Polygon, Gate.io, Alpha Sigma Capital, and Blockchain Founders Fund.

GamyFi is based on the Elrond blockchain and is an esports gaming platform that encourages sports fans, gamers and crypto enthusiasts to use their skills and knowledge on the platform. These players will be rewarded with exciting NFTs and in-game assets. The GamyFi platform uses blockchain technology to ensure a fair platform for everyone while being fast and secure. The platform has the GFX token as an in-game currency that is used to reward users and conduct transactions.

There are currently five applications running on GamyFi.

  • Fantasy sport: Users can create their own fantasy sports team and players can earn points when they perform well in real time. Fantasy sports on GamyFi include soccer, baseball, cricket, and soccer to name a few.
  • lottery: Users can buy lottery tickets with GFX and join the pool of other entrants to win the mega prize.
  • NFT marketplace and games: Here users of GamyFi NFTs and games collect, play, buy or sell.
  • PVP multiplayer games: This option allows GamyFi users to sync with real-time multiplayer games and custom rooms that can be created. Users can play with their friends or against other GambyFi users.
  • Forecast market: Here GamyFi users can predict the results of events, sports games and elections. If their predictions are correct, they can join the winning pool.

Step Hero is the first NFT fantasy-themed RPG game on the Polygon Network – with extremely low fees and instant transactions – making it the perfect combination of DeFi and NFT games. The ecosystem enables its users to enjoy the game while making profits. The action takes place during a post-apocalyptic war between the heroes led by Archangel Gabriel and the army of shadows led by Lucifer – the demon lord. Players play the hero roles and their missions include fighting the villains in battles while building their energies by collecting in-game assets, making money called STEP coins, and leveling up their characters.

The entire Step Hero ecosystem consists of the Step Hero RPG game, the NFT marketplace, and the Heroes Farming. Step Hero also goes beyond its game limits with a strong community that helps players on the platform invest in activities that encourage them to make money from the game.

Players can earn income in the following ways:

  • You can sell in-game assets such as self-made weapons, healing potions, and power-pulse potions in the marketplace for cash.
  • You can earn prizes as soon as you win player-versus-player (PvP) battles.
  • You can upgrade your characters and trade them later. The more unique and powerful their characters, the more profit they make.

CryptoBlades is a play-to-earn game where players take on roles to fight monsters, participate in raids, craft unique weapons, and trade their in-game assets on any open marketplace. CryptoBlades players will be rewarded with the SKILL token, depending on their skill and persistence. Developed by the game development company Riveted Games, CryptoBlades is elegantly designed to prevent bots. High and low grade weapons are listed on the Marketplace, and the higher the value of a weapon, the more SKILL tokens users will receive when they gain victories. At the time of writing, CryptoBlades has over 300,000 active users and has resulted in over 100 million transactions on the Binance Smart Chain in less than two months since launch – resulting in a mass adoption of blockchain protocols at an unprecedented level.

While digital gaming has no limits, it has really picked up speed in the Philippines, hit hard by the global COVID-19 pandemic, with a 9.6% GDP decline in 2020, the largest annual decline in the world ever since data collection began in 1946. Play-to-earn games on blockchain have allowed people to make money while locked in their homes.

The game was endorsed by big names like Binance, IGN, and Steam, and received the Binance Most Valuable Builder II program. In addition, the Cryptoblades team has a fully decentralized system with over 50 developers and a GitHub that is open to player participation and has huge bounty rewards for finding bugs to improve the game.

Play-to-earn and the future of blockchain gaming

Play-to-earn games are the latest innovation in the blockchain gaming industry. It will revolutionize how people interact with the economy of their favorite games. It has ensured and adopted the concept of an open economy to ensure that players who add value to the gaming world are financially rewarded. This, in turn, has seen some kind of domino effect in the crypto markets as a lot of people visit these games (regardless of how game oriented they are) to play and make money.

The markets are on an uptrend as these games are being invested by both large institutions and private investors. This is really DeFi season, and I expect it will be for a while as more games gain recognition and traffic. This would lead to more investments that ultimately depend on the market. The immediate future is green and it would be wise to participate in these games to earn.

This article does not provide investment advice or recommendations. Every step of investing and trading involves risk, and readers should do their own research when making a decision.

The views, thoughts, and opinions expressed herein are those of the author alone and do not necessarily reflect the views and opinions of Cointelegraph.

Evan Luthra is a Top 30 Under 30 Tech Entrepreneur and Blockchain Expert with an Honorary Doctorate. in decentralized and distributed systems. His companies StartupStudio and Iyoko invest in the companies of tomorrow and help build them up. Evan is a sought-after speaker at various universities and conferences around the world.