Where NFT games and virtual economy overlap

Non-fungible tokens (NFT) can be said to have transformed from an inconspicuous part of the field of encryption and blockchain to a greater importance in popular culture. In fact, as cryptocurrencies and decentralization seem to permeate social, political, and economic conversations, the apparent hype surrounding NFTs seems to be incentivizing more adoption of digital currencies.

In the NFT field itself, games are often considered a possible use case for the commercialization of digital collectibles.now at Game to earn NFT, There seems to be an increase A coincidence of games, blockchain and virtual economy.

Within this convergence point, projects such as Axie Infinity have achieved significant growth by combining the satisfaction of gamers from playing games with the opportunity to receive monetary rewards in the form of cryptocurrency. With this increase in popularity, the token valuation of these NFT games has also increased, which in turn drives more sponsorships.

NFT games to make money games may be the next major economic activity in the crypto matrix. The significant increase in the popularity of the model may see the market go hand-in-hand with other components of the cryptocurrency business (such as mining, mortgages, and transactions), at least in terms of value creation potential.

Axie Infinity worth $1 billion

August 9th, Axie Infinity (AXS) cross The historical trading volume of 1 billion US dollars has consolidated the game’s position as one of the main projects in the current bullish NFT era. According to reports, between July 9 and August 9, sales of NFT games exceeded 1.4 million, with sales of approximately US$780 million.

Data from Similarweb shows that the Axie Infinity website Rank As of the end of July, among the top 1,200 websites in the world, the website’s online traffic has increased nearly five times in the past six months. Twitter On August 6, Axie Infinity revealed that its daily active players had exceeded the 1 million mark.

This milestone announcement with 1 million users gave us a glimpse of the growing popularity of Axie in a short period of time. Just as the Axie token price has increased by 18 times since the beginning of June, the game’s user base has also grown by 1,000% during the same period. Since mid-May, AXS and other similar tokens have reversed the downward trend of cryptocurrency prices, which is the growing appeal of the wave of games to earn NFTs.

The significant growth of Axie in the past two months has made NFT games one of the most valuable crypto projects in the industry. As of this writing, AXS ranks among the top 40 cryptocurrency assets by market capitalization, and price trends indicate that it may break the $100 mark in the near future-a move that will bring the token’s year-to-date performance to the north of 18,700%.

Microeconomics of playing games

Many cryptocurrency and blockchain use cases usually face the problem of “mainstream adoption”-their new protocols and operations will gain widespread interest in and outside the cryptocurrency field through this path. For irreplaceable tokens, playing games to make money may be the key to reshaping the narrative of digital collectibles and blockchain games.

On the one hand, the ability to earn rewards in the form of cryptocurrency by playing games may create economic incentives for potential adopters, whether they are casual players or hardcore gamers. There are even data showing that games like Axie Infinity are becoming a profession for young people, especially those living in countries affected by the current economic recession caused by COVID-19.

related: “I am a miracle”: Interview with Axie Infinity NFT

As early as May, Cointelegraph reported that Axie Infinity players from the Philippines could Become a homeowner from the proceeds Generated by playing NFT games. According to data from Similarweb, as of July, the Philippines accounted for almost half of the platform’s total global network traffic, and the website ranked 33rd among the most popular websites in the country.

Axie Infinity was developed by Vietnamese game studio Sky Mavis and is very popular in Southeast Asia. NFT games also have a lot of sponsorship from South America, especially in Argentina and Brazil.

Since the summer of 2020, earning NFT through games seems to have ended its life and attracted more interest from game customers. This steadily growing interest, coupled with the current NFT mania, may help to push such blockchain games to a higher level.

In a conversation with Cointelegraph, Dragos Dunica, the co-founder of the decentralized application analysis platform DappRadar, commented on the integration of decentralized finance (DeFi) and games, and pointed out:

“Now, we see the integration of DeFi mechanisms and game mechanisms to promote interaction and use. The most popular games are creating environments where users can not only have a unique NFT, but also use it to earn rewards within the same platform.”

According to Dunica, the current trend is the beginning of a “real revolution” in games and decentralized applications (DApps), which is likely to flow into mainstream games. “For example, the concept of using in-game items as tradable NFTs will really change the rules of the game,” Dunica added.

Data from Axie Infinity of DappRadar Dashboard From more than 3.1 million sales, the game’s historical sales are approximately 1.4 billion U.S. dollars. Since its establishment, the gaming platform has also accumulated more than 416,300 traders.

Irreplaceable transformation: a new kind of virtual existence

The popularity of blockchain-based games to make money games may also provide another window to examine how NFTs seem to change digital interactions. As Craig Russo, Innovation Director of PolyientX, NFT Vault and Market Agreement, told Cointelegraph:

“Earning revenue through games is a high-potential area in the NFT field. We have seen some good market verifications, which has caused most game-related token prices to soar. However, playing money-making games is very niche. Before the level of adoption is comparable to non-blockchain game fields such as e-sports, a large number of mainstream game ecosystems need to be entered.”

Russo and Dunica both stated that they expect NFT games, especially the types of games earned, to become an indispensable part of the evolving meta-universe. Russo said, “I believe that games earned by games will become one of the main pillars of emerging Meta universe.”

Russo believes that NFT and the wider DeFi space have the potential for extensive interaction:

“The ability of users to earn token economic cash flow by putting work into the game will become the basic driving force of this new virtual existence. I am particularly interested in the crosstalk between NFT and DeFi, which will drive the next major in the NFT market Turning point of growth.”

He said that projects like Ape In, an NFT-driven virtual world, have focused on a “consumer-friendly” approach to DeFi by introducing features such as staking out game characters. For Russo, these measures to improve NFT liquidity will help convert irreplaceable tokens into more productive assets, further expanding its on-chain utility.

related: Blockchain games have been struggling to compete with traditional games…until now

For Dunica, the transition to a digital lifestyle is accelerating. He told Cointelegraph, “The idea of ​​spending time in a virtual environment is not as strange as it used to be.”

Therefore, given the growth of platforms such as Axie Infinity and the potential for ownership retention provided to gamers, NFT’s play-and-make games may provide a channel for “the first truly mass-adopted use case in the blockchain space.”