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Is the GameFi boom over? How will it evolve next

December 16, 2021
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Is the GameFi boom over? How will it evolve next

GameFi track growth slows

Entering December, the growth trend of the GameFi track, which has been hot since the second half of this year, has fallen sharply. Some chain games began to collapse or their currency prices fell sharply, and even some well-known GameFi projects were not spared and suffered heavy losses one after another. Such as CryptoMines, Cyber Dragon, Metamon, Farmers World, etc. Whether it is from the transaction volume of in-game Tokens and NFTs, or players and users, they have all dived one after another.

The Block data display. At present, the transaction volume of NFT assets in blockchain games mainly comes from five games, Axie Infinity, Sorare and Alien world, CryptoKitties, and Gods Unchained, but they have gradually declined after entering December. As of the most recent data on December 12, the total transaction volume of NFT assets was USD 21.36 million, which is 90% lower than the high of USD 219 million. Even the leading chain game project Axie Infinity, which accounted for 90% of the total transaction volume, also saw its transaction volume cut in half, falling to 19.23 million U.S. dollars, a 90% drop from the peak of 215 million U.S. dollars.

Before the GameFi track was in an overheating stage, the entire market was supported by irrational funds and new influx of users to support the value of the project. When the market began to adjust, and even fluctuated with the fluctuations of the entire encryption industry, the value of game assets and currency prices in the GameFi project began to gradually return to their true prices.

But fortunately, after a brief ebb, there is not nothing left in the GameFi field, and there are still many projects praised by the industry. For example, the leading project Axie Infinity, after widely popularizing the concept of Play to Earn, successfully ignited the GameFi boom. Many residents of Southeast Asia even started to make a living by playing this game due to the lockdown restrictions of the new crown epidemic. The other chain game, Thetan Arena, has injected more playability into the game. It is no longer about paying too much attention to benefits and ignoring the originally important playability of the game. Therefore, it has won the favor of a wide range of players. One month later, it has exceeded 6 million users.

Decentralized Web3 game

How will current GameFi games evolve, and what has changed compared to traditional games?

In the field of traditional games, there are many drawbacks in both the game’s mechanism design and the ownership of assets. Games are often controlled by developers and third-party operators, and the data lacks transparency. Once the game manufacturer changes the game parameters, it will cause substantial damage to the interests of the players; at the same time, the players cannot have the ownership of the game assets, and their transactions Behavior will also be severely restricted. On the other hand, for players, playing games is just a simple entertainment and pastime, which cannot bring actual benefits to them and lacks investment value.

In the field of encryption, games built with blockchain technology can well solve these centralization and data opacity issues, and players can obtain their ownership through game assets issued by NFT, and play to earn in the game. Bring real benefits to yourself.

While GameFi is still evolving and iterating, it is not yet known what the game form of Web3 will look like in the future. It is a general trend to solve the transparency problem by uploading part of the data in the game to the chain, and whether GameFi can bring stable income to players, and really realize the real earning while playing is still a big test that plagues many project parties.

In addition, is the ownership of assets in the game the most important? Take the legal currency as an example. We have the ownership of the legal currency in our hands. They are unique, traceable, and even tangible. However, the value behind these legal currencies is constantly fleeing from us with inflation. Perhaps for Web3 games, ownership is still not the most important thing. Without the empowerment of decentralization, there will be no decentralized ownership.

In the future, Web3 games may still be dominated by DAO. From the initial idea of ​​a game, to the development and production, and promotion and promotion, it will be completed by the fans of the game, and then based on everyone’s contribution. Allocate the corresponding Token and NFT assets in the game.

Fortunately, the giants in the traditional game field have also seen this trend, and have poured in to accelerate the progress of this process. Among them, the large game manufacturer Ubisoft has already laid out encrypted games in the early years, not only has released a number of blockchain games, but also recently launched a game platform that supports NFT. And Andrew Wilson, CEO of Electronic Arts, has also expressed his interest in NFT and Play-to-Earn, and described that this may become an important part of the game industry in the future. In addition, Twitch co-founder Justin Kan also announced that it will launch a Solana-based game NFT market.

What the game form of Web3 is, maybe it is still being explored. But it is also constantly approaching its true appearance, and this will require everyone to explore together.

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