Blockchain Gaming

Rise of Play-to-Earn Models in the NFT Gaming Industry

TL;DR Breakdown

  • NFTs with Virtual reality are revolutionizing how to play games.
  • Play-to-Earn models run on smart contracts to grant ownership of digital assets to gaming participants.
  • There are two major ways of obtaining liquidity in decentralized gaming

The growing integration of NFTs with Virtual reality is revolutionizing how to play games. You’ve probably heard of the Metaverse how games like Minecraft can allow you to purchase virtual land using a non-fungible token.

The token could also be earned as an in-game reward or bought; and then used to conquer more virtual civilizations, control more power, and become a dominant player.

CryptoKitties pioneered a new age of decentralized NFTs gaming. The platform’s massive traffic caused a downtime on Ethereum a while later after launching.

What Is the Play to Earn Business Model?

Play-to-Earn models run on smart contracts to grant ownership of digital assets to gaming participants. The in-game assets are awarded according to a set of predetermined conditions. Ideally, the assets gain more value as more players get into the game. Usually, the assets or rewards are pegged to a non-fungible token, and players can exchange them for dollars on a decentralized exchange.

NFT Liquidity in Gaming

There are two primary ways of obtaining liquidity in decentralized gaming, both enabled by NFTs.

  1. Buying & Selling Non-fungible Tokens – Gamers can create, buy and sell NFTs through the play-to-earn model. For example in Axie Infinity – players can breed magical creatures called Axies and use them to battle other gamers. The Axies are usually different and players track the ownership of each creature through the blockchain. Players can also breed the Axies and sell them at a higher price, thereby creating an open economy for decentralized gaming. The player’s marketplace hosts NFTs collectibles such as power boosts, cosmetic items, and weapons.
  2. In-game rewards – A game such as Mbox which was recently launched on Binance LaunchPool uses a free-to-play model to reward players with cryptocurrencies. Players can also stake their cryptos on the liquidity pool to earn more staking rewards.

The resulting open economy makes gaming more beneficial and financially rewarding to enthusiastic players. In the future, the popularity of these games is likely to hit a fever pitch and drive the price of NFTs higher and higher. Remember, you can trade or HODL the earned tokens on cryptocurrency exchanges such as Coinbase or Binance and earn more from these assets.

Axie Infinity Token AXS Shot by 1000 Percent Between May-Sep 2021

For example, Axie Infinity – a game running on the Ethereum network and inspired by Pokemon, had its token AXS selling at $4.20 around May 2021. The price surged by approximately 120 percent by mid-August to the $13-$15 range and then spiked to a whopping $90 by the start of September 2021. Check the following chart below by Tradingview.

AXS/USD June -September Chart by Tradingview

The bullish trend on the price action of AXS/USD posted a record gain of 1000 percent within a month a half. This shows there is also potential to trade in-game tokens such as the AXS and MOBOX’s MOMO NFT.

Polygon Investing in Decentral Games

Another case is that of Polygon investing in the Decentral Games native token, $DG. A move that will certainly drive the price of $DG high.

The bullish trend on the price action of AXS/USD posted a record gain of 1000 percent within a month a half. This shows there is also potential to trade in-game tokens such as the AXS and MOBOX’s MOMO NFT.

Another case is that of Polygon investing in Decentraland’s native token, the $DG. A move that will undoubtedly drive the price of $DG high.

This post was last modified on November 6, 2021 12:49 pm

Beatrice Mastropietro

Beatrice is an experienced freelance Crypto and Financial market writer with several years of experience writing for a variety of businesses, platforms, and media sources. She specializes in developing original content to fit her clients' needs with a dedication to quality and integrity.

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Beatrice Mastropietro

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