GameFi has shown immense potential in the past year, attracting several capital investments since its launch.
The Play-and-earn model has been a key driver of this growth, as it allows clients to engage directly with and earn rewards from their favorite games.
According to data from BanklessTimes.com, capital investments in GameFi rockets have surpassed the $4B mark in the first half of 2022.
Speaking on the data, BanklessTimes CEO Jonathan Merry said, “GameFi has attracted a lot of attention from the industry and capital markets, as the potential for mass adoption of the Play-and-earn model is becoming more apparent.
“The fusion of gaming and decentralized finance (DeFi) is a powerful combination that is unlocking a new world of opportunity for gamers and investors alike.”
How the play-and-earn model is revolutionizing customer engagement
Play-to-earn is a model where players can earn rewards by simply playing their favorite games. This is in contrast to the traditional pay-to-win model, where players have to spend money on in-game items or upgrades to improve their chances of winning.
The beauty of the play-to-earn model is that it allows even casual gamers to monetize their hobby and earn rewards for their time and effort. This is a key driver of GameFi’s growth, as it encourages more people to try out the platform and get involved in the gaming community.
Axie Infinity, a popular game on the GameFi platform, is a perfect example of how the play-to-earn model can work in practice. In Axie Infinity, players can breed, collect, and train pet creatures known as “Axies.” These Axies can then be used in the battle against other players, with the winner receiving rewards in the form of in-game items or cryptocurrency.
This system not only benefits the player by giving them a chance to earn rewards but also benefits the game developer by providing them with a constant stream of engaged users. This is a win-win situation for both parties, and it’s one of the key reasons why the play-to-earn model is so successful.
What’s next for GameFi?
Esport is another area with a lot of potential, and League of Legends competitions attract more spectators than the combined Super Bowl and the NBA Finals.
GameFi is already involved in the competitive gaming scene, and we can expect to see more tournaments and events being held on the platform in the future.