(Commonwealth Union)_Blockchain-based video games have become more prevalent in the gaming market over the past several years. While there were early examples like the 2017 introduction of CryptoKitties, the trend has really taken off with well-known gaming studios even looking at the technology.
The market value of blockchain games was approximately $25 billion at the start of 2022, and even in the midst of a bear market, it doesn’t appear to be declining anytime soon. Blockchain games and nonfungible tokens (NFT), which have recently been very tightly entwined, and have become the two most stable segments of the cryptocurrency market this year, according to the analytical firm DappRadar. This has led to the emergence of a new economic phenomena.
Axie Infinity, a well-known game, serves as an arresting illustration in this regard. Last October, the token price of the project soared above $150, giving it a valuation of more than $9 billion. The game’s daily audience reached almost 2 million individuals during that time.
First off, the majority of blockchain games are played in browsers and are made with HTML5 and WebGL technologies, which have greatly increased the possibilities for browser game development. These games refreshed browsers while simultaneously enabling NFT withdrawals to external markets and the connection of crypto wallets without any regulatory restrictions.
Second, there is no direct competition for blockchain games since the traditional PC gaming industry still views the blockchain as an illogical or even “toxic” environment. This offers small studios, which are now unable to generate substantial gaming franchises, a significant development head start. Developers may immediately support the expansion of their game worlds without incurring debt or inflating working capital thanks to the in-game economy’s quick launch.
Finally, because players may make money in blockchain-based games just by participating, games based on this technology are primarily about money. Users earn tokens for performing activities and spending time in the game, which they can subsequently invest in or exchange for real money.
