Surge In Crypto Gaming: Metaverse Hype
Key points
- Understanding what crypto gaming is
- Metaverse and Crypto Games
Metaverse can be defined as the three-dimensional representation of the internet. It is considered to be a realm of endless, interconnected virtual communities where people can perform different activities with the help of VR, AR and other technologies.
Understanding what crypto gaming is
Earlier, with traditional gameplay, a person was required to buy a game or make an investment in a free-to-play title. But now, in crypto gaming the game will pay its customers for playing the game or will provide incentives to reward the time that a user has spent on the game while playing it. At times the reward can also be financial share in the company that developed the game.
Research has shown that the gaming industry during the pandemic surpassed all its targets, alone in the UK $2.2bn more was spent on video games in comparison to last year. Research has also highlighted how cryptocurrency in the gaming sector is proving to be a successful combo. Axie Infinity, one of the most popular crypto games, has crossed $1 billion in earnings. As per the reports by InvestGame, investors are looking to invest in crypto games, every year the investment in crypto games has quadrupled in comparison to previous year. As per the data of 2021 the current amount invested in crypto games is above $450 million
Metaverse and Crypto Games
Metaverse is an environment that will allow its users to perform various activities through their digital avatars. Even though at present it seems to be far from reality, but, games like Axie Infinity and Decentraland are some of the examples of blockchain-based metaverse-like programs. These online games provide opportunities to its players to make money, buying and selling of virtual land and many more. Virtual world-based apps like Fortnite and Roblox, along with these games provide the closest possible metaverse experience. As per different sources, it has been identified that during the first quarter of 2021, people spent around 1.3 billion hours playing Roblox, with almost 202 million active users.
As per the information provided by DappRadar, the main focus of the dapp industry is on blockchain-powered gaming. About 55% of the total unique active wallets (UAW) were connected to game dapps in the month of October. There was also an increase in the UAW active wallets by 12% in comparison to the previous month.
Crypto gaming has started to attract many investors who desire to be a part of the new revolution. Venture capital firm, “Bitkraft Venture” has announced an investment of $75 million in various applications related to crypto gaming. In its first fundraising round, Sky Mavis was able to raise $7.5 million because of the investment made by Mark Cuban.
The open-world character of metaverse has allowed it to gradually transform into digital economies with different collectibles and utility tokens.
For the maintenance of the metaverse network, a decentralized, blockchain-based governance model is emerging, in which a group of users or community members will work together to ensure smooth functioning of the metaverse. Blockchain will keep a complete track of all user-created virtual locales, financial transactions and transfer of digital assets. Blockchain will also ensure that all the transactions are secure, public and permanent, thus facilitating the players with control and private access of their transaction history.
The recent rebranding of Facebook to “Meta” has fueled the growth of the metaverse games. The Metaverse can now be considered as the new future of crypto gaming.
Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.
Photo by- Glenn Carstens-Peters on unsplash