GameFi Growing Rapidly on the Market, According to Nansen
GameFi is facing a period of strong growth, according to Nansen analysts.
If you were intrigued by the article a few days ago on the good impact that GameFi (or game finance) is having on the market, this article is for you. According to Nansen, a renowned onchain analysis site, the crypto market is going through a moment, in which the vertical growth of this segment can no longer be overlooked.
The Nansen Report Highlights GameFi's Important Growth
According to a recent report issued by the analyst firm, a sustained growth of blockchain-based gaming is clearly evident. Consider that the so-called compound annual growth rate (CAGR, a rather relevant indicator in the field of forecasting the future of a company or market) between now and 2030 predicts +68% for the segment. Translating this obscure percentage into money, we can foresee a growth of around USD 300 billion, for the entire GameFi segment, over the next 5 years.
We must be careful to generalise, given the extent of these figures. We are talking about the entire gaming finance sector, which includes numerous companies and start-ups. The fact that their segment will grow does not mean that every player will necessarily experience growth. It is to be expected that many will, because the timing is particularly favourable: the decentralised nature of blockchain allows players to actually become owners of gaming assets such as tokens and NFTs. Online gaming, which has been around for some time, or the recent play-to-earn phenomenon, deals in currency, not in collectible or resalable assets.
This leverage is new and is resonating well with decentralised finance enthusiasts.
Between Incentive and Entertainment: The Frontier of GameFi
GameFi set to leap to $301 billion by 2030 with real-world rewards - Nansen
Growth margins are due to this feature that mediates entertainment and investment. No other video game platform is able, at least for the moment, to do the same. The gamer is offered not only the entertainment experience that he can now enjoy even when he is in the grocery checkout line, thanks to his smartphone, but a real mix of entertainment and potentially profitable financial activity.
It's not a Question of Genre of Videogame!
According to Nansen, there is no one type of blockchain-based game that is leading the way: all will have an equal chance to expand, even considerably, their market. Role-playing games (or RPGs) will be the ones to benefit the most from the trend, potentially reaching an explosion in popularity. This is due to the fact that they place special emphasis on character progression and in-game economies to allow access to new classes or skills. In addition, they are generally set in vivid and immersive game worlds, which by their very nature lead the player to want to explore them thoroughly, devoting more hours to the title and becoming more and more passionate about its narrative.
This genre of adventures is enjoying enormous success, even in offline gaming. In that situation, however, everything that is unlocked remains stationary within the game world and can only be enjoyed within that experience. GameFi, on the other hand, allows one to actually be the owner of costumes, characters, weapons or abilities, which can be extrapolated from the narrative universe, in the form of NFTs, and then traded or given away outside the title. Progress and in-game achievements thus acquire much value. Because of this, player involvement is bound to increase exponentially, according to the equation, more hours played (thus more fun, for those who enjoy the title) = greater earning potential.
Who knows if GameFi will really grow that much over the next five years? To get the answer to this and many other questions related to Web3 and cryptocurrencies, subscribe now to the newsletter from SpazioCrypto.
If you were intrigued by the article a few days ago on the good impact that GameFi (or game finance) is having on the market, this article is for you. According to Nansen, a renowned onchain analysis site, the crypto market is going through a moment, in which the vertical growth of this segment can no longer be overlooked.
The Nansen Report Highlights GameFi's Important Growth
According to a recent report issued by the analyst firm, a sustained growth of blockchain-based gaming is clearly evident. Consider that the so-called compound annual growth rate (CAGR, a rather relevant indicator in the field of forecasting the future of a company or market) between now and 2030 predicts +68% for the segment. Translating this obscure percentage into money, we can foresee a growth of around USD 300 billion, for the entire GameFi segment, over the next 5 years.
We must be careful to generalise, given the extent of these figures. We are talking about the entire gaming finance sector, which includes numerous companies and start-ups. The fact that their segment will grow does not mean that every player will necessarily experience growth. It is to be expected that many will, because the timing is particularly favourable: the decentralised nature of blockchain allows players to actually become owners of gaming assets such as tokens and NFTs. Online gaming, which has been around for some time, or the recent play-to-earn phenomenon, deals in currency, not in collectible or resalable assets.
This leverage is new and is resonating well with decentralised finance enthusiasts.
Between Incentive and Entertainment: The Frontier of GameFi
Growth margins are due to this feature that mediates entertainment and investment. No other video game platform is able, at least for the moment, to do the same. The gamer is offered not only the entertainment experience that he can now enjoy even when he is in the grocery checkout line, thanks to his smartphone, but a real mix of entertainment and potentially profitable financial activity.
It's not a Question of Genre of Videogame!
According to Nansen, there is no one type of blockchain-based game that is leading the way: all will have an equal chance to expand, even considerably, their market. Role-playing games (or RPGs) will be the ones to benefit the most from the trend, potentially reaching an explosion in popularity. This is due to the fact that they place special emphasis on character progression and in-game economies to allow access to new classes or skills. In addition, they are generally set in vivid and immersive game worlds, which by their very nature lead the player to want to explore them thoroughly, devoting more hours to the title and becoming more and more passionate about its narrative.
This genre of adventures is enjoying enormous success, even in offline gaming. In that situation, however, everything that is unlocked remains stationary within the game world and can only be enjoyed within that experience. GameFi, on the other hand, allows one to actually be the owner of costumes, characters, weapons or abilities, which can be extrapolated from the narrative universe, in the form of NFTs, and then traded or given away outside the title. Progress and in-game achievements thus acquire much value. Because of this, player involvement is bound to increase exponentially, according to the equation, more hours played (thus more fun, for those who enjoy the title) = greater earning potential.
Who knows if GameFi will really grow that much over the next five years? To get the answer to this and many other questions related to Web3 and cryptocurrencies, subscribe now to the newsletter from SpazioCrypto.
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