The crypto industry is slowly regaining ground, with some asset prices rebounding and confidence in the sector recovering after a terrible year of meltdowns, millions in losses and scandals. And now some pundits are predicting the next bull market and the biggest driver in the space will most likely center on one sector: blockchain gaming.
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As first reported by The Daily Hold, analyst Pentoshi told his 691,500 Twitter followers that the crypto gaming sector will be the next big mover in the space.
"I'm confident the game will provide the most upside in the next bull run," Pentoshi tweeted on May 19. Most people don't care about 99% of what crypto projects claim to solve. »
Responding to a user asking how much he would actually invest for his belief in the game, Pentoshi replied, "Enough to put millions into it, I guess."
Tokenomics: the key to the Web3 game
Several experts agree. For example, Liberty Blockchain CCO Christopher Alexander said that Web3 gaming has incredible potential for blockchain and crypto – the reason being tokenomics.
“Players earn digital rewards by playing games and some of the rewards end up being listed on exchanges. Basically, it's the reverse of a 1980s arcade game. The game pays you, rather than the other way around,” said Alexander, adding that the game has incredible utility and a massive global audience, which which makes it an incredible gateway to blockchain and crypto.
“Many Web3 games transact through other blockchains – for example, with an Etherium ERC-20 token – so the rising tide of games will lift Layer 1 blockchains as well,” he said. he adds. “Gaming coins are always closely tied to bitcoin prices, so I wouldn't expect a bull market that rises significantly outside of BTC prices, but gambling is definitely one of the best cases of use of blockchain we've seen so far."
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Blockchain Games Market Projected at $65.7 Billion in 2027
The data supports these claims. According to a report by MarketsandMarkets, the size of the global blockchain gaming market is expected to grow from $4.6 billion in 2022 to $65.7 billion by 2027, driven by increased blockchain gaming funding.
The Web3 gaming space, also known as GameFi (Game Finance), is not a new concept. As Chainlink explains, it uses blockchain technology “to formalize a market that has always been fraught with friction, difficult to access, and sometimes completely banned by game publishers.”
“Tokens are a transformative technology aimed at replacing those closed items, currencies, and even accounts,” according to Chainlink.
3 elements of success
So what makes a successful Web3 game?
According to Dan Nissanoff, CEO and founder of Game of Silks, these share three characteristics.
First, they benefit from a property economy that is central to the game itself. Second, the game is fun to play. Third, the game is an improvement on an already successful game genre that enjoys a large pre-existing Web2 audience.
“Web3 fantasy sports games are currently the poster child for the future of online gaming for this very reason,” he said, adding that the top three games in this category are Sorare, Reignmakers and Game of Silks. , whose main games are held in football, soccer and thoroughbred horse racing respectively.
They are also successful in that they leverage the huge fan base that already exists in web2 fantasy sports, borrow from the fundamentals of a tried and true fun game format, and enhance the platform by introducing genuine ownership in the game, he added.
"Imagine playing fantasy sports where you can buy or sell players on your team with real money at any time," Nissanoff said, "or owning the digital twin of a real thoroughbred racehorse that you can sell fractional interest to other players who get paid every time the IRL counterpart wins.This is exactly what these platforms offer and why they are growing so quickly and are so valued.
Several experts also note that GameFi is in its infancy and its potential is huge with the integration of other technologies.
A “major catalyst” on the way
Nick Rose Ntertsas, CEO and co-founder of Ethernity, noted that integrating blockchain gaming into global digital worlds is indeed the holy grail.
“So what excites me the most is the type of headset hardware that Apple is developing right now,” he said. “Enabling gaming through AR-enabled headsets will create an incredibly immersive experience. And it will likely be through innovation in this regard that blockchain-powered games will really see the light of day, especially with NFTs that serve as assets in the game. game.
Ntertsas added that digital ownership through NFTs is set to become a powerful and fun feature in the blockchain gaming world when augmented reality/virtual reality makes gaming more dynamic and engaging.
"We just need the AR/VR hardware to catch up, and get closer to what's happening," he added. “When that happens, it will likely serve as a major catalyst for the blockchain gaming world.”
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