The blockchain gaming industry took the gaming market by storm in the fourth quarter of 2021. The rising popularity of P2E games has led to the rise of gaming guilds, which are a key part of the ecosystem by letting people know about the best projects and forming communities. The term “gaming guild” refers to a group or group of players who gather to play games and share information. Such groups/clans function as a resource for those who play regularly , and also act as a community that makes the experience more exciting and enjoyable. Gaming guilds have been around for many years, however since the P2E surge Blockchain gaming has been able to generate huge profits and attracting venture capital.
YGG was the first to move and was one of the top nft gaming guild that initiated this trend. YGG is an online gaming association that is a DAO which grants the right to manage the holders of its tokens. The guild functions as a community-controlled , community-controlled wallet that invests in games that use blockchain technology and game assets. In these games, participants are paid in crypto tokens for playing games and renting assets that belong to the guild to participate in the game.
Axie Infinity is a play-to-earn like pokemon game that was the catalyst for the expansion of the gaming trend known as Play-to-Earn that has provided sustenance to many as shown on this document. Virtual pets, known as Axies are available to purchase and trained to fight each other for the purpose of earning Smooth Love Potion ($SLP) the game’s token. It can be earned through winning games. SLP can be traded for USD as well as Ethereum and can be converted to real money via exchanges. Axie Infinity’s native coin $AXS witnessed a massive increase during the third quarter of 2021’s Q3 increasing from 3$ to an all-time Record high of $164.90 on November 6, 2021. Axie Infinity now ranks amongst the most popular dApps in terms of monthly revenues in comparison against other dApps.
The popularity of Infinity resulted in a massive demand for P2E pay-per-play games by players who were not able to catch Axie’s popularity or couldn’t afford to participate due to the cost of entry for Axies on the market
Play-to-Earn(P2E) can be described as a gaming-based economic model which rewards players with the game’s crypto tokens, which can later be converted in fiat. The game Axie Infinity, an game’s token is known as Smooth Love Potion, awarded to players once they have completed their missions and win. By using $SLP, gamers can breed or acquire the axie of their choice. In addition they can also exchange $SLP for fiat on the major cryptocurrency exchanges, such as Binance. Axies are NFTs based on ERC721 which can be traded via the marketplace for axie.
We know that players spend billions of dollars on game items, cosmetics , and improvements however P2E transforms it by giving players to purchase within the game and gain more cash from their investment. It rewards players who work long hours and encourages gamers to play more. This is beneficial for both developers and players, the aspect of making money or investing in the game may encourage the players to spend more. P2E economics can also provide an ideal foundation for the development of an eventual Metaverse. We are living in a simulation which is based upon the real world. Making the most of P2E economics will form the foundation for developing the economic system in the Metaverse.
Game as catalyst for the mass adoption of cryptocurrency
This article from CNBC clearly explains how a tiny Philippines village has earned an income from engaging in Axie Infinity. The villager’s jobs were cut off by the outbreak and decided to playing Axie Infinity, which enabled the villagers earn more the national minimum salary.
Blockchain is the technology that allows P2E gaming currency and in-game assets. They are merely implementations of the ERC20 and 721 techniques. Gaming could potentially open the floodgates to widespread adoption of crypto.
- The median age of gamers is 35 and 35. Crypto as an asset type attracts younger investors due to their need for risk and a zeal for the latest technologies.
- Gaming has become a mainstream activity with estimates of up to 3 billion people playing video games in some way. It is estimated that this number will increase with the advancing age of people.
- Gamers are a technologically savvy group that is likely to be able to navigate through wallets than the average person.
The gaming industry is the biggest entertainment industry that is that is projected to grow by 205 billion dollars in 2023. Thus, P2E is an astoundingly high TAM. With improved games as well as virtual reality and COVID lockdowns the growth is likely to keep growing. All of these elements are bringing us closer to virtual worlds, with P2E and virtual economy.
Gaming guilds are now an online platform that supplies gamers with money, information and resources to play P2E games. Gaming guilds receive an amount of commission or share of the earnings of a player. This is a common practice in P2E games such as Axie Infinity because even buying an Axie in order to begin playing the game will require substantial budget. Axie Infinity has successfully onboarded millions of players to the blockchain story, accelerating the growth of the whole blockchain ecosystem.