As the global blockchain market sprinted to $5.9 billion in 2022, financial experts claim several reasons for this. The rising interest rates in Decentralized Finance (DeFi) and non-fungible tokens further determine an annual growth rate of 85.9% till 2030. However, though several positives accompany the rising growth in the blockchain market, they have quite a lot to achieve.
Making the real blockchain market fun to deal with, the Play-to-Earn paradigm is bringing together gamers globally to help them make an impact. With a fantastic response rate, almost 18% of the adults between 18-34 experience or engage in P2E gaming. Several South-East Asian countries, Brazil and India, have seen the highest performers in P2E gaming.
Influence of DeFi and NFT on P2E
DeFi and NFT systems have innovated several engaging and exciting features in the GameFi ecosystem. For instance, players often earn tokens after completing a mission or winning a game. Users can also convert these tokens into local currencies or other digital tokens.
While this sounds fun and exciting, the GameFi ecosystem has several restrictions on the newcomers. Some GameFi platforms also require novice players to purchase NFTs before trying a hand at them. Specific GameFi platforms also allow newcomers only $1000 just to begin. Such a sum is often beyond the means and expectations of most newcomers.
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NFT Relaxes GameFi Entry Barriers
Technological advancements and innovations for integrating NFTs and DeFi bring new ideas to enhance P2E games’ accessibility. For instance, renting NFT is a unique solution for P2E gamers requiring NFT within a specific budget. Hence, a newcomer with a limited budget can still access P2E games by utilizing rented NFTs.
The Gamefi ecosystem reduced the risk for newcomers by reducing the fees for borrowing in-game assets. Players need not put up risky stakes or collaterals. Instead, they can try their luck in new games by renting digital assets.
Apart from the process of renting NFTs, the industry is looking for newer ideas to welcome newcomers and encourage them. For instance, players receive community-centric resources and split their earnings with the guilds.
Like traditional scholarships, guilds offer the resources, tools, and training essential for the gamer to earn. The rewards are divided between the players and guilds once they do. The amount reserved by the players and the guilds varies. Various guilds require sums, which can be as large as 70/30, where the user retains the former proportion of the earnings.
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Innovations Boost Players’ Income
The new technological innovations in renting NFTs and other features have increased players’ income. In some instances, even reports of the gamers’ income tripled than their expected range.
Thus, DeFi and NFTs are the primary reasons for the unprecedented growth in the blockchain gaming industry. Such an environment further sets the base for future innovations and industry expansion.