Play to earn is quickly becoming a thing in many gaming spaces, where players can either have winnings in NFTs or crypto. Gaming has existed for a long time, and many people have had their moments with a console or have used their phones to play a game. The significance of gaming to the world economy is noteworthy, as in the UK; over a billion dollars went into gaming in 2021.
People play games for different reasons, while some do it as a pastime. Others have found gaming a fulfilling career. The global gaming industry is now shifting focus into the metaverse, which promises real-world experience in the virtual world. Cryptocurrencies will help power the new world via gaming tokens, which transform into rewards that can exchange hands in the blockchain for money.
Earning gaming tokens could be an alternative for those learning how to trade BTC and those trying their hand at other investments. Diversification is the best way to get into the world of investment.
What is the State of Gaming Tokens
Gaming is significant; it might help give the crypto industry the validation it deserves. In 2021, the total valuation of the gaming industry stood at about $17 billion–a figure that will probably go higher in the next decade, owing to the increasing affordability of gaming tools.
The mouthwatering figure is still short of over the $1 trillion valuation of the overall crypto industry. However, when separating Bitcoin, which is the largest by market cap from the number, the gaming tokens have significant sway on the crypto sector.
More games are adopting their characters into NFTs and using crypto as rewards, meaning that non-gamers looking to make more money will shift their efforts into buying popular characters to sell them later to other budding gamers.
Games have used play-to-earn to encourage people to reach the final levels of their games. Those who cannot do so might have to buy gaming figures with more capabilities to reach the last levels.
Gradually, as people get used to virtual spaces, the cryptocurrencies that pulled them in will become more valuable. Those without the crypto will not have a way to trade to get their favorite characters.
Axie infinity, a notable player in the crypto and gaming space, has made over a billion dollars in the recent year. The company combines NFT assets, which are gaming characters and play-to-earn. The two endear more to the players. Crypto collected in the game helps build other resources that improve the game continuously.
How Does Crypto Gaming Work?
Crypto gaming combines a variety of issues that makes it profitable for the creators, while also regarding the needs of the players.
Most crypto gaming sites run in decentralized spaces, meaning they use the blockchain to interact with the players. Gamers have the authority to do as they desire with their tokens and NFTs earned in the game. They can choose to trade them on trading platforms.
The marketplaces provide the NFTs, which are gaming characters. Players can use the NFTs to reach higher levels and put them back in the marketplace at a higher price. In addition, gamers can take their gaming personalities into other NFT marketplaces to sell them to a larger audience and at a higher price.
Axie Infinity is an example of a game that has embraced digital assets. Playing to certain levels opens the player to more opportunities of earning tokens, and even to sell their characters. The tokens are tradable in the blockchain just like any other crypto and are usable in the game to buy diverse characters to complete certain levels.
The current situation of Gaming Tokens
Since the launch of ETH, utility tokens have been on the rise. People have appreciated them because they help fuel a technology that powers decentralized apps, and even NFT marketplaces. Gaming tokens also have utility.
Statistics show that about 2 million people play crypto-based games every month. Alien world, Axie Infinity and Splinterland take the largest share.
About 22 million Asians take part in crypto gaming. While Europe and the Middle East take the second and third spots.
While the figures do not highlight any threat of an immediate dominance of gaming crypto. The potential in the North American and European markets is exceptionally high. Africa also has a notable number of people taking part in crypto gaming, meaning that globally, crypto gaming has a significant chance to dominate the crypto space.
Gaming tokens are a notable threat to the established crypto that are tradable in PrimeXBT and other platforms. If the metaverse becomes big as widely expected, the gaming community, which totals millions, will switch to using gaming crypto. However, soon, the crypto industry will not notice a substantial change. The big coins will dominate for a while.