TK Ventures Report Reveals: NFT Market Skyrockets 122x, Gaming Industry Set for Revolutionary Change

ChainPlay

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one year ago

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According to a recent research report from TK Ventures’s Crypto Market Report, the market for non-fungible tokens (NFTs) has seen explosive growth, increasing by 122 times to $12.2 Billion by late 2022. 

NFTs in 2022

Notably, the market for NFTs faced a decline in 2022, showcasing an overall decrease in active traders and a gloom in volume after an early peak. However, the report notes that despite this setback, 4 out of 5 investors still believe in the future potential of the NFTs, citing Collectible, Gaming, and Domain name as the three most favorite reasons for engaging with the technology.

Despite the challenges, this indicates the growing interest and acceptance of NFTs as a valuable and unique form of digital ownership. It remains robust and continues to thrive as we step into 2023.

Explore full Crypto 2022 Report here.

GameFi as Strongest Use Case

The report also found that gaming is the strongest and most popular use case for NFTs,  finding that 3 out of 4 investors have entered cryptocurrency because of GameFi (sources: ChainPlay.gg). This indicates the growing popularity of decentralized gaming and the potential for profit it holds. 

GameFi as the primary use case
 

Furthermore, profits were cited as the primary reason for this trend, with 51% of respondents mentioning that profits were the biggest motivation for Investing in GameFi.

However, the report also noted that fear of rug pulls, or sudden and unethical withdrawal of a project's funds, remains a major limitation for many investors.  The lack of oversight because of decentralization allowed fraudsters to profit from the NFT game project scams.

Investor barrier in Web3 Games

Traditional Corporations Coming to Web3

The report also indicates that traditional corporations are increasingly entering the web3 gaming space, suggesting that the industry is poised for even more growth in the coming years. 

Web3 users compared with Epic Games and Steam

As of 2022, the market share of GameFi is significantly less than traditional games. Web2 games currently have 245 times more on Google Play and 180 times more active users on Steam, demonstrating how young the Web3 gaming industry is.

While having a small market share in relation to the overall gaming industry, it has continued to exhibit a growing interest from traditional companies, suggesting that web3 games may soon see mass adoption. Distribution and Service companies are moving into Web3 gaming with Game Publishers and Indie Game Studios showing the greatest interest in the transition.

Industries' interest in Web3 Gaming Industry

A major limitation to NFT adoption was reported to be its speculative properties, with 45% of respondents believing that it is the biggest reason gaming firms hesitate in its integration. 

Overall, the research report provides valuable insights into the current state and future potential of the NFT and web3 gaming market. 

It is clear that NFTs and web3 games are rapidly gaining traction and are set to revolutionize the gaming industry in the years to come but they must overcome their limitations and challenges accompanied by their negative reputation.