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Blockchain gaming has witnessed a surge in adoption rates globally. ‘Play-to-earn’ crypto games primarily have provided ways to engage users, but are there any drawbacks to this model?
The concept of blockchain gaming has been around since the early days of cryptocurrencies, but it is only in recent years that it has started to gain traction.
One of the major drivers behind the growth of blockchain gaming is the play-to-earn (P2E) model. This model has transformed gaming from a leisure activity to a means of earning money. This obviously attracts a much broader range of people to the sector.
Assessing the Model
The play-to-earn model is based on the idea that gamers can earn rewards through cryptocurrency for playing particular games. These rewards can then be traded on exchanges for other cryptocurrencies or fiat currencies. The P2E model has become particularly popular in countries where there are limited job opportunities or where the cost of living is high. In these countries, blockchain gaming has become a viable way for people to earn a living.
One of the key benefits of the P2E model is that it is decentralized. This means there is no central authority controlling the flow of rewards or determining the value of the cryptocurrency. Instead, the value of the cryptocurrency is determined by the market, which is driven by supply and demand. This has created a new type of economy where gamers can earn a living without being tied to a specific employer or location.
Another advantage of the P2E model is that it has created new opportunities for game developers. Developers can create more immersive and engaging games by incorporating blockchain technology into their games. They can also offer players the chance to earn rewards, increasing the game’s popularity and attracting new players.
Gaining Traction
The Polaris Market Research Blockchain Gaming Report shows that the total transaction volume for blockchain games reached $5.41 billion in 2022 and is expected to grow at a CAGR of 68.90% during their forecast period.
Public interest in cryptocurrency and everything tied to the digital landscape has seen exponential growth in recent years, garnering interest from long-term investors, traders, and global brands. The power of Web3 has been blurring the lines between physical and virtual, allowing people to earn money digitally through online games.
Crypto gambling platform Cryptogambling.tv conducted a study using data from Google Keyword Planner to reveal the most popular games to earn cryptocurrency based on monthly search volume from the last 12 months. The results were exclusively shared with BeInCrypto via mail.
Most Googled Online Games to Earn Cryptocurrency
One of the most popular blockchain games that use the P2E model is Axie Infinity. This game allows players to own and battle creatures called Axies. Players can earn rewards through a cryptocurrency called Small Love Potion (SLP) for playing the game. SLP can then be traded on exchanges for other cryptocurrencies or fiat currencies.
Per the shared data, Axie Infinity had an estimated average of 535,202 searches per month. Axie Infinity has become particularly popular in the Philippines, where it has become a means of earning a living for many people. The game has created a new type of economy, where players can earn rewards for playing the game and then use those rewards to pay for their daily expenses.
The success of Axie Infinity has led to the development of other blockchain games that use the P2E model. These games include My Neighbor Alice, The Sandbox, and Splinterlands. These games allow players to earn rewards in the form of cryptocurrency for playing the game.
An exclusive quote shared with BeInCrypto asserted, ‘Axie Infinity’s colorful theme and multi-platform compatibility have undeniably contributed to its popularity over the last few years. The game features cute digital creatures that can be trained and used for battle, like those games on retro gaming consoles. The only difference now is that you can earn money by playing it from your mobile device.’
“The power of cryptocurrency has truly impacted the financial technology industry, and it is now impacting the gaming industry. People can now not only game for the experience’s joy but also earn money for themselves.”
Other Leading Games On the List
Second on the list is virtual metaverse SecondLive, with a 496,313 average monthly search volume. The Windows, Mac, and Android-compatible game allows users to create avatars and roam around an open virtual space. Herein, they can build their lifestyle of choice. Users can buy and sell items within the game’s online marketplace using BNB, which can be traded for other fiat currencies.
Ranking in third place is Stepn, a ‘move-to-earn’ mobile game where users can earn cryptocurrency by walking, jogging, or running. Thereby promoting a healthy lifestyle while also earning money. The web3 app boasts an estimated average search volume of 478,794 on Google over the past 12 months.
Other platforms are listed in the table below:
The growth of the blockchain gaming market has attracted the attention of investors. In 2021, the market capitalization of the blockchain gaming industry was estimated to be around $4 billion. Investors are particularly interested in the P2E model, which can create a new economy unrelated to traditional financial institutions.
Pros and Cons of the Play-to-Earn Model
The play-to-earn (P2E) model has transformed the gaming industry by creating a new economy where gamers can earn a living by playing games. The decentralized nature of the P2E model has created new opportunities for game developers and attracted investors’ attention. Blockchain gaming market growth is expected to continue. The P2E model will likely play a significant role in the gaming industry’s future.
But again, there are some pitfalls to consider.
The play-to-earn model has become popular in blockchain gaming due to the potential for players to earn cryptocurrency rewards for playing games. However, as with any market, those always prioritize profit over creating enjoyable experiences for players. As more and more projects enter the market, there is a risk that the focus will shift toward maximizing rewards rather than creating engaging gameplay. Another potential drawback of P2E games is that they may become too complex or challenging for casual players to enjoy. Players may need to invest significant time and effort into mastering the game mechanics and accumulating assets to earn rewards. This could be a turn-off for those looking for a more casual gaming experience.
Developers must balance rewarding players for their time and skill while creating a fun and engaging gaming experience. This can attract both hardcore gamers and casual players who may be less interested in earning rewards but still want to enjoy playing the game.