No Roadblocks For GameFi Despite Market Conditions
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Cryptocurrency has provided unprecedented security and transparency to users, giving financial freedom to nations across the globe.
Alongside the crypto boom, play-to-earn (P2E) gaming has successfully emerged, harnessing blockchain technology. As anyone with an internet connection can access P2E, the technology has become increasingly popular in economies that sometimes struggle to find additional income streams.
A DappRadar and Blockchain Game Alliance report from Q1 2022 found the GameFi industry to have grown by over 2000% in the past year alone.
The space has also caught the eyes of investors, with venture capitals and other investors investing over USD 2.5 billion in 2022 in blockchain games and metaverse projects. Financial institutions are also estimating the economic potential of decentralized metaverses to reach at least USD 8 trillion in market value in China alone.
Under the current market conditions, many investors have been left wondering if GameFi will be impacted by the recent crypto winter. However, according to the latest report by DappRadar on the future of the GameFi industry, gaming has demonstrated utility in the context of the metaverse in Q2 2022.
The report looked at healthy ecosystems and investments approaching the GameFi and metaverse markets. For example, it found that even when Bitcoin was declining in early June, the blockchain game Illuvium sold 20,000 land plots, generating 4,018 Ether (ETH) for its developers, worth USD 72 million at the time the sale took place.
The report covered several projects in detail, outlining their continued success and growth. Illuvium, Galaverse, and STEPN have continued to bring new players to their platforms, gain financial interest and expand their businesses. It also found that Splinterlands has held 350,000 daily unique active wallets (UAW) since May, showing a slight 4% decline from April.
The driving momentum behind these projects seems to be the underlying utility provided by the gaming aspect itself. With many GameFi and metaverse projects now using nonfungible tokens (NFTs) and crypto tokens, they are proving their worth as much more than a novelty. Take the card packs in the Shiryo play-to-earn project, for example, which can be bought and sold in the Shiryo ecosystem and used to play their game.
Dappradar’s recent report illustrates that GameFi’s utility can stand the test of time, despite the current crypto downturn, with many GameFi projects likely to be resilient to the bear market. Shiryo is a strong example of projects like these, with an active and thriving community and the project still building despite market conditions. The team behind Shiryo is passionate about leveraging their expertise to revolutionize the trading card game niche within GameFi.
“We believe that we can utilize our skills, passion, and capital to ensure that we gain first mover’s advantage in the creation and development of the best trading card game in DeFi. We have big plans to not only take over the trading card game space – but to inhabit the metaverse, ”the company says in its whitepaper. The project is developing continuously, even launching its decentralized autonomous organization (DAO) known as ShiryoDAO.
Projects like Shiryo are evidence of the GameFi sector still developing regardless of the highs and lows of the crypto market. Moreover, with investors and venture capitals still actively investing in gaming projects, the bear market might not hinder this crypto sector at all.