Blockchain games are becoming more and more popular. Games like The Sandbox, Star Atlas and High Street are getting attention and hype in the cryptocurrency community. With the bear market in everyone’s mind, more and more questions arise. Will blockchain games perform well, or will they fall with ‘regular’ cryptocurrencies during a potential bear market? In this article, you’ll find three arguments in favor of these games.
What are Play to Earn games?
Play to Earn is a relatively new phrase in the gaming industry. It was not very well known just a few months ago, but now, everybody is talking about it. Play to Earn (P2E) means that players get rewarded (mostly in the form of in-game assets & items) for playing a game.
Crypto games are made on a blockchain and operate within a crypto ecosystem. NFTs are often part of a game’s ecosystem. These are non-fungible (unique) tokens. You can collect or trade these NFTs, but they can also be a tool or weapon that you can use in the game. NFTs can be sold to earn. So, one way to earn within blockchain games is by selling earned NFTs. Another way is by selling the game’s own token, which you have earned by playing the game.
This is why Play 2 Earn Games could perform well
Gaming is the hottest thing in the crypto industry at the moment. The blockchain gaming world is booming and many great projects are launching. However, we have been in a bull market. Will these blockchain games do well during a bear market? Below, you will find three arguments as to why they just could.
1. The rise of Axie Infinity
Firstly, the currently most popular blockchain game, Axie Infinity, has experienced massive growth. The game’s token did well, even when the crypto market went down and struggled. Of course this is not a certainty for the future, but it is remarkable.
Many think the rise of Axie Infinity has shown the potential of blockchain games. People might even start playing games to look for new ways to make money.
2. Blockchain gaming is here to stay
Gaming is something people will always resort to. Now, with many great blockchain games & gaming platforms launching, a possible bear market might affect these projects less. A study from last month shared that nearly 60% of American and UK-based video game developers are starting to use blockchain technology.
A lot of time, energy, and money is being invested in blockchain gaming and Play To Earn. For example, in November, FTX, Solana Ventures & Lightspeed Venture Partners launched a $100M gaming fund. This is just one example of companies investing in GameFi. That’s why games might perform well during times in which the crypto market is going down.
3. The integration of the metaverse & NFTs within blockchain games
The third argument is that Gaming has become a home for the metaverse, which is looking like it’s becoming the next big thing. Not just in the crypto & blockchain space, but in general.
Big companies, like Meta, are investing in the metaverse concept. The Sandbox’s current rise to the top demonstrates how combining blockchain gaming and the metaverse in the right way can lead to a project becoming a huge success. Since the metaverse is not only related to crypto, a bear market might not affect Blockchain P2E games that integrate the metaverse (or affect them less).
The same argument could also be made for NFTs. These are currently very hot, and blockchain games are integrating them into their games. By including the metaverse-concept and NFTs, Crypto P2E games are not fully depending on the success of other
Of course, in a bear market, just like during a bull market, anything can happen. The above arguments and scenarios could happen, but within crypto, there are no guarantees. Always do your own research and due diligence!