The year 2021 will be remembered as the beginning of the explosion of GameFi and the metaverse that accompanies it. GameFi is essentially DeFi that has been "gamefied," which means that it incorporates gaming elements to make it more approachable for regular people and frequently integrates NFT tokens into the gameplay to enable users to make money in the real world. GameFi is an extension of DeFi. The user quickly realizes that they are able to mine tokens through gameplay once financial attributes are introduced, placing a play-to-earn ideology at the forefront of their experience. This allows the user to realize that they are able to mine tokens. In a similar vein, those funds have the potential to be converted into apparatus or props that have investment value. The business model of GameFi has been successful in attracting the attention of both the blockchain circle and the gaming industry. As a result, it has become a Horcrux of public discussion.
DeFi: The first surge in activity was noticed in July of 2020, and it was then followed by the busiest month of the year in March of 2021. Traditional businesses in the fields of technology and finance eventually came around to the idea at that time and accepted it.
NFTs: The initial surge in popularity occurred in March of 2021, and the beginning of the boom period in popularity began in August of that same year. NFTs are recognized across the board in the entire art world at this point.
Gamefi: The market is exploding, and the point of maximum activity has finally arrived.
The market for video games around the world is showing no signs of slowing down, and the industry as a whole is doing very well. According to research conducted by Newzoo, the size of the global gaming market is projected to grow at a compound annual growth rate of 12.2 percent, taking it from 70.6 billion USD in 2020 to 177.8 billion USD in 2021. Additionally, by the end of 2023, it is anticipated that it will be greater than 200 billion USD. In addition, the percentage of the market that is occupied by mobile games has increased from 12 percent in 2012 to 49 percent in 2020, and it is anticipated that this number will rise to 52 percent before the end of 2021. After that, the market for video games around the world will keep expanding. These statistics provide evidence that the overall development trend of the industry is positive, and that there is significant room for expansion in the market.
By the end of the year 2020, a total of 72 million USD had been invested in blockchain games; as of the 30th of July in 2021, this number had surpassed one billion.
The blockchain is the foundation for the virtual world known as the metaverse. It's a decentralized platform that gives users ownership and autonomy, but there's no catch. Users can take advantage of both. Users are able to move freely between the real world and the digital world at any time and in any location thanks to the immersive experience, which brings the virtual world closer to the reality that they know and experience. They will also be able to take actions that have a positive impact on their real-life financial situation, such as investing and trading, both of which will feature prominently as essential components of the system.
The metaverse is the internet's very own development vision, and it has emerged as a plausible path for the expansion and investigation of the gaming industry. The long-term growth of digital infrastructure, terminal equipment, game content, and the technology behind virtual currencies are the primary focuses of this initiative. It is anticipated that the metaverse will introduce a new level of entertainment, an increased number of social modes, and the capacity to work together on projects. Individuals will have access to a source of income as well as investment opportunities as a result of this. The best way to present the Metaverse is through the medium of a blockchain game, which will also continue to make social breakthroughs and evolutions via ideas such as open worlds, user-generated content, and virtual currencies.
The metaverse and Gamefi are crashing into the world like huge boulders ready to be mined for their resources, and their effects can be seen everywhere from fundamental ecosystems to cutting-edge applications. We are not only looking at encrypted art from the perspective of the current industry; rather, we are observing the rapid development of NFTs as well as the beginning of a gaming craze for the next generation. The familiar kind of blockchain games first appeared a few years ago, but the variety of gameplay and the innovation of game mechanics provide even more opportunities and a huge amount of power to the gaming industry. This is a significant departure from the familiar kind of blockchain games. Models such as pay-to-earn (P2E) and non-fungible tokens (NFTs) have helped accelerate the popularity of the metaverse and Gamefi concepts, in addition to breaking down the barriers that had previously been present in previous blockchain projects.