3 Ways NFT Gaming Is Building New Wealth Opportunities – Entrepreneur
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A new use-case for cryptocurrency is booming, particularly in parts of Asia, and it’s gaining traction in other parts of the developing world. Not only is “play-to-earn” a new source of income where people can earn real money by playing computer games, but it’s also turning the crypto market on its head by enabling investors to invest in a different category and for crypto holders to earn a yield. It’s creating a three-way economy of building wealth and, at the same time, simplifying entry into the crypto world.
There is still a long way to go until all the bumps are smoothed out, but the proof of concept has succeeded, and a wave of both investment and innovative projects are making their way into the mainstream. We’re at the “early adopters” phase of the Innovation Adoption Curve, and now is the time to learn about this new market and how you can take advantage in three ways. And the best part is, you don’t have to be an avid gamer, nor a crypto or NFT holder, to get in on the action.
Related: 5 Reasons Why NFTs Are The Metaverse’s Ideal Revenue Model
1. Play-to-earn (P2E)
There are more than 800 blockchain-based video games that allow you to earn rewards with cryptocurrency or NFTs, according to Playtoearn.net. Of those, 200-plus are live. Most went live within the last few years, with the leading P2E game, Axie Infinity, starting in March 2018. It has since hit a $3 billion valuation.
Hype around these games began during the pandemic in 2020, when Axie Infinity launched its governance token AXS onto public exchanges. A rise in players fueled the demand, and Axie Infinity’s protocol revenue jumped a staggering 12,047% in three month. In May 2020, its revenue was just under $3 million; by August of that year, it peaked at $364.4 million.
Axie Infinity Sky Mavis reports that the game has surpassed two million daily active users. The majority of players are found in South-East Asia, with 10% in the United States and a remaining 20-25% across Europe and Africa, according to Naavik. But there’s one particular barrier for Axie Infinity players: You need to buy three Axie characters (NFTs) to be able to play the game and earn rewards. These NFTs are now fetching around$400 each, pricing out many potential players.
So if you want to play the game and you don’t have a spare $1,200, you could apply for a scholarship program through a guild. Loot To Yield records 23 guilds at the time of writing, which invest in game NFTs and …….