NFT games could become The Catalyst to drive Web3 mass adoption

ChainPlay

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2 years ago

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The introduction of NFT games took the web3 space by storm. What started with a simple play to earn game like CryptoKitties has generated more than 1,500 blockchain games to choose from. Each crypto game has its own style, economy, story, and gameplay mechanics that separate it from other NFT game titles.

NFT utilizes blockchain technology to achieve what it does – enable users to earn monetary rewards as they accomplish objectives within the game. Blockchain technology has improved various sectors of society, particularly traditional finance and gaming. This has led to the birth of DeFi (Decentralized Finance) and GameFi (Gaming Finance).

Arguably, these are the most prominent sub-sectors derived from blockchain technology. DeFi combines the rewards derived from traditional financial features and integrated them with decentralization to offer a brand of finance without the middleman. Meanwhile, GameFi integrates traditional gaming features with web3, creating a decentralized digital economy where people can socialize, compete, and interact online with friends or strangers like The Sandbox.

The Sandbox users socialize in digital worlds

However, one of these sectors has proved itself not only fit for transitioning many into web3, but this sector has proven resilient despite numerous industry-breaking events such as the Terra debacle and FTX collapse. Taking a deeper dive into this phenomenon will reveal exactly why NFT games are the most suitable sector to catalyze web3 mass adoption.

NFT Games are Fun and Easy

When people first hear about terms such as blockchain, Bitcoin, and Cryptocurrency, it often invokes a sense of confusion from most people. A global research study revealed that over 60% of its respondents don’t understand crypto, indicating that this is the primary difficulty in transitioning many to engage in blockchain projects.

If you look into one of the most used projects in DeFi, most of them require a steep learning curve before you can fully reap the benefits of many DeFi protocols. Terms such as yield farming, staking, and APR are technical terms that serve as the foundation for decentralized finance. Investors will have to familiarize themselves with technical terms before confidently engaging with DeFi projects.

Osmosis Decentralized Exchange

This is where NFT gaming truly shines as the most suitable to onboard many into crypto. Crypto games serve as the most suitable industry to onboard many due to their easy-to-understand and to get into mechanics. 

Crypto games such as Blast Royale are simple yet fun shooter NFT games. It combines the massively successful gaming genre of battle royale and integrated a reward system from play and earn crypto economies. You create an account then you join a game, and if you win you receive rewards such as in-game tokens or cosmetic skins.

Blast Royale Gameplay

Even if they were to complicate the system such as adding tokens, players would find it fun to accumulate and learn how this system works. Additionally, the movement toward play and earn experience even provide an option to users who want to enjoy the game without cryptocurrency.

Furthermore, Chainplay’s State of GameFi report suggests that 3 in 4 investors joined crypto primarily because of GameFi.  In other words, 75% of investors were introduced into the world of web3 via NFT games.

Many of them joined the market within the last two quarters of 2021, corresponding to when GameFi users rapidly rose due to hype and the COVID-19 Pandemic. NFT games have driven investors into web3 before, and it certainly is going to do it again.

Axie Infinity Rapid User Growth

A perfect example of GameFi user growth would be the massive success of Axie Infinity. The popular pokemon-like NFT card game might not be the first crypto game ever made, but it was the one that placed play to earn games on the map. It was so massive that the game had 2.78 million users at its peak.

Axie Infinity Gameplay

Axie attracted many investors through the attractive prospect of profits and interesting game mechanics. Moreover, the game had a cute art style, showcasing adorable creatures called Axies. Players would typically earn in-game currency($AXS) for accomplishing quests and defeating other players.

Axie’s case is the most potent example of how easy it is for people to dive into NFT games. The game was a major hit with SEA countries like the Philippines, and many of its users claim that this was their very first blockchain game.

NFT Games are the Most Resilient 

NFT games have proven to be the most resilient among all blockchain industries since the bear market. Crypto market tragedies such as the Terra debacle and FTX collapse led to catastrophic events among investors and sent ripples toward the entire cryptocurrency market.

However, despite increasingly dire conditions, these events have only left minimal effects on the top Blockchain games. NFT games had an average of 800,875 daily unique active wallets in November. Users only decreased by a measly 12% post-FTX collapse
 

Image source: Dappradar

Moreover, Blockchain games and metaverse projects raised $534 million in the last few months. Indicating that bullishness toward NFT games is unfazed whether the spotlight is on a bear or a bull.

During Terra’s collapse, DeFi and NFTs dropped by a significant 14.8% and 12.2% meanwhile GameFi and NFT games increased by 9.51% despite the turn of events. Looking at the data alone, it would be understandable why this would confuse some. Isn’t NFT games also based on cryptocurrencies like DeFi or CeFi?

The resiliency the crypto gaming industry has shown is an attest to their engagement with their investors. The trust they put forth onto a gaming project does not hinge on profitability, but rather on fun game mechanics, engaging lore, appropriate engagement with the community, and many more.

NFT games prove to be the most resilient since the nature of their projects is based on fun, not speculation. Even if the market goes up, down, or sideways, a gamer wouldn’t care less about the token price however an investor would. A well-designed NFT game would have a user base primarily composed of gamers, immunizing them from the harsh effects of market volatility.

Conclusion

The problem of reaching mass adoption has been the primary goal of every builder within the decentralized economy. Although other industries provide a much-needed demand in their respective markets, NFT games are the industry that’s most suitable to drive web3 mass adoption.

Combining its easy-to-understand nature, fun learning mechanics, gentle learning curve, and resiliency, NFT games are capable of transitioning millions of people into cryptocurrency and blockchain. Currently, builders have realized that fun & interactive game design should trump poor earning mechanics. It’s undergoing a transition from its early play to earn age to a play and earn in-game economy design.

It’s safe to say that no matter how many bear markets or whichever large crypto exchange decides to go under next, GameFi will continue marching forward innovating every step of the way.