Ways blockchain gaming can survive the crypto winter
By Kameshwaran Elangovan
Blockchain gaming is considered a stable asset, and the emerging sector has passed a total of $2.5 billion in investments globally, which may explain why it remains in high demand.
The crypto winter was no stranger to anyone following the news. Global crypto markets fell from $2.2 trillion at the start of 2022 to $796 million by the end of the year. These turbulent times were understandably a cause for concern for investors from around the world. However, despite the bear market, blockchain games managed to not only survive, but thrive.
According to DappRadar, Blockchain gaming has grown by 48% in January 2023, compared to other blockchain activities, up from 45% in December. While we cannot deny the fact that blockchain gaming is yet to witness mainstream adoption, it has a significant advantage over crypto. Take for example the fact that crypto markets are known for their volatility… Blockchain technology, on the other hand, has found several applications across various industries such as finance and healthcare. Similarly, games are also more tangible for the user. So it should come as no surprise that the gaming industry is projected to reach $365.6 billion in revenue by 2023.
Second, blockchain games allow users to monetize their winnings, providing an opportunity to generate additional sources of income. With the advent of Web3 and the use of blockchain in games, non-fungible tokens (NFTs) have grown in popularity, and the recent NFT market has registered a bullish trend, with $941 million in trading volume and $9.2 million in sales, reflecting what could be a promising quarter for NFTs. Crypto, as a whole, may have lost empathy, but gaming has the empathy, patronage and admiration of many people around the world.
Another thing to remember is that games have never seen a dull market. Ever since the games were launched, they have been sought after by a large and eager audience, which has ensured a popularity that stands the test of time. As technology evolves, it is only natural that the gaming industry will use these new innovations. One such innovation is the blockchain. As an extension to the already growing gaming sector, crypto has nothing negative to do with changing the gaming market landscape.
Blockchain technology has therefore transformed aspects of the gaming industry. Ensuring transparent transactions, improved security, lowered transaction costs, verification of users and improving the overall user experience are some ways blockchain has been able to supplement the gaming world to make it better. Blockchain also ensures the lifetime of game assets, which makes games much more rewarding than previously thought.
Over the past few years, blockchain technology has found countless applications and large-scale user adoption in areas other than gaming. The winter is therefore only related to crypto and not to blockchain or games. The gaming landscape has been undisturbed for years, and has grown rapidly year after year. Even when the crypto winter hit hard, blockchain gaming remained in vogue, not giving room to even the notion of a “gaming winter” or a “blockchain winter”.
Developments in the crypto market have become a source of concern for investors. However, blockchain gaming is weathering the crypto winter, and continues to gain popularity and appreciation for the unique benefits it is able to provide to its users. Blockchain technology in games enables economic benefits for users, ensures game sustainability, while looking after key stakeholders such as game developers. By leveraging blockchain capabilities to enable a digital economy where users are able to earn money as part of the gaming experience, blockchain games present a significant upgrade from traditional games, allowing anything to flourish.
The author is co-founder and COO, GuardianLink
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