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With the transition to free-to-play gaming models and the advancements in technology, the blockchain gaming industry has become widely accessible to a large number of people. In 2024, the global gaming market was valued at over $200 billion, while in 2023, the market value for blockchain gaming was $4.6 billion.
The gaming industry has grown rapidly over the past few years, and this is due to an increase in contributing factors such as the rise of esports and streaming platforms and the integration of augmented and virtual reality.
The market value of blockchain gaming has become increasingly important for the following reasons:
- Investment opportunities: There are significant investment opportunities for traditional gaming companies and venture capitalists to fund blockchain projects with huge potential returns.
- Player engagement: Players who use blockchain gaming have unique incentives, such as the chance to earn while playing and become owners of virtual assets. Online casinos are one example of providing unique incentives for players using blockchain technology. These incentives can be in the form of cryptocurrencies such as Bitcoin or rewards to attract players to games. According to iGaming Expert Pride Kazunga, live casinos with Bitcoin offer the best advantages for players. This includes faster payment processing, privacy, and live casino gaming options. In addition, players can expect high-stakes limits and hassle-free account registration when they join.
- Market trends: Blockchain gaming integrates decentralisation and digital ownership, allowing publishers, developers, and investors to make strategic decisions about playing blockchain games.
- Regulatory considerations: Stakeholders can navigate the potential legal challenges that may arise and ensure compliance with emerging regulations by enforcing clarity on regulation as blockchain gaming grows.
- Competitive advantage: Designers and game developers can have a competitive advantage if they understand the market value of the blockchain gaming market by creating innovative games.
Factors Driving Growth in Blockchain Gaming
Blockchain gaming growth has been influenced by several factors that have changed the gaming landscape. These are the primary drivers:
- Increased adoption of cryptocurrencies: Cryptocurrencies have become an accepted form of currency used to expand the blockchain gaming industry. Players can now easily buy, sell, and trade cryptocurrencies within the gaming space.
- Rise of play-to-earn models: Players can now earn real-world value through their in-game activities, which has changed the gaming industry by rewarding players with cryptocurrencies or NFTs for playing.
- Enhanced user engagement through NFTs: Players can now own unique in-game assets such as virtual real estate, skins, or characters and trade, showcase, or sell these NFTs.
- Technological advancements in blockchain: Enhanced security measures have been implemented on blockchain gaming platforms, and software cross-chain compatibility has been integrated to allow for lower fees on faster transactions.
Some of the key players in the blockchain gaming space are the following gaming companies:
Axie Infinity is one of the pioneers of blockchain gaming and allows the use of a play-to-earn model to allow players to earn cryptocurrencies by playing games. The Sandbox is another example of a virtual world platform that allows users to monetize, create, and own their gaming experience using blockchain technology. Gods Unchained is a trading card game using blockchain technology to allow players to get ownership of their virtual in-game assets.
Conclusion
With mainstream acceptance, a sustainability focus, community-centric models, and increased investment opportunities, the blockchain gaming market could potentially reach anywhere between $50 billion and over $100 billion by 2030. Expected trends such as increased adoption of P2E models, enhanced user experiences, and interoperability will also expand the market over the next few years.