Just recently, in September this year, Fortune Business Insights released a report showing the possibilities of the blockchain gaming market growing at a CAGR of 21.8% by 2030. The market size, which was valued at USD 128.62 billion in 2022, was expected to reach USD 614.91 billion in 2030. Of course, North America – known for its dynamic tech scene – emerged as the global leader, with a market share of about 23.87%.
So why do you really think the gaming industry has been opening up to this technology? If you are among those asking themselves such questions, then you are just in the right place. If you are a tech-savvy person, you can actually agree that getting updates on such trends can be quite helpful. Consider, for instance, how the price of Bitcoin keeps changing, needing you to stay hooked to charts frequently. So, here, we will look at various reasons why blockchain has been taking up the gaming sector by storm and uncover more fascinating insights.
What is fueling this growth?
Do you really know the 2017 CryptoKitties game that allowed you to breed, own and exchange kitties as assets? Well, that was just the beginning of what would be the norm a few years later. As more gamers continued to show love for such games, more developers started incorporating blockchain technology into their ecosystems. No wonder you can now enjoy play-to-earn games.
Can you imagine that in 2023, these types of games surpassed $107 million? Although compared to the more than $400 billion video game market share, this value is quite high. It only shows you that play-to-earn games have much more potential in the coming days. In fact, according to a 2022 GDC report, 27% of developers confirmed that they were interested in NFT and crypto and might incorporate these technologies in the future.
This sector has, however, not been without challenges. Last year, estimates revealed that at least 3 in 4 crypto games failed and that the average annual failure rate could go to as high as 80%. Crypto’s volatility stood as the predominant reason for this failure.
Top blockchains for crypto gaming
Just as you have seen, from the first crypto game in 2017, many others have come up. This is thanks to the blockchain infrastructures that have made this possible. For instance, towards the end of 2023, there were about 340 crypto games on the BSC blockchain alone.
Polygon followed closely with 240 games, while Ethereum and Wax hoasted 196 and 118, respectively. This is without forgetting Solana, which had about 21 games.
It might be worth noting that GameFi projects only accounted for a small percentage of these games. The BSC chain, for instance, had less than 10% active GameFi projects. However, things were a bit different with Wax. The network had approximately 90% active GameFi-related projects, accounting for 58% of the nearly nine million dollars in GameFi transactions.
What are some of the popular blockchain-based games?
The Sandbox
If you are looking for a way to monetize NFTs on the blockchain, you may want to consider this game. The Sandbox operates on an Ethereum blockchain that allows you to participate in decentralized environment. You can buy digital land using SAND tokens and as well design and build your own games and experiences.
The whole idea is about prioritizing ownership and monetization. For example, by using the Game Maker tool, you can customize game mechanics without necessarily employing extensive programming skills. Plus, you have the opportunity to integrate different blockchain-based assets through partnerships, making the gameplay even tighter.
Something that you may want to take notice of in this game is another token referred to as LAND. Although SAND tokens allow for different operations, like developing NFTs and engaging in governance activities, LAND is a bit different. Just like the name suggests, it is used to represent virtual land, which can go up to 96 square meters. With LAND, you can fully own and control your virtual lands.
Sorare
For those who love fantasy-themed games, you probably have encountered Sorare. Developed in 2018, Sorare features three sports: baseball, football and basketball. By 2022, this game had received more than three million registered users, with 260,000 engaging actively every month. The numbers could have actually increased because by late 2023, the number of monthly active players had gotten to about 300,000, according to Medium.
When participating, you’ll need to compose and manage virtual teams, each with five players alongside player cards. The cards are usually rare and unique and cannot be duplicated. Teams will then be ranked according to how players perform in the real world – just like it is in traditional fantasy sports. As more players welcomed Sorare, more investors were drawn to it. Just in January last year, we saw the English Premier League partner with Sorare over the official Premier League-licensed NFTS.
Parting words
Who does not want to game in an environment that is safe, private and transparent? Absolute no one. These are just a few of the benefits that the blockchain technology offers gaming. It is no wonder why Fortune Business Insights anticipates that the blockchain gaming market share will increase more and more. And who knows? Maybe as more players welcome crypto games, the figures might even surpass the projections made by this research institution.
