Believe it or not, GameFi is here to stay and it is only getting bigger. The idea of making money through playing video games exploded in 2021.
In GameFi, players participate in challenges, battles, or missions and win crypto tokens. These tokens are good for in-game purchases or even redeemable for fiat to real-world money.
Combining Gaming and Finance
GameFi, which combines gaming and decentralized finance (DeFi), is disrupting the traditional gaming industry. It describes the connection of DeFi protocols to games for income-earning purposes.
Tokens are usually based on the ERC-20 standard of the Ethereum blockchain. The tokens are mostly issued as part of an Initial Coin Offering (ICO) or through an airdrop. Using smart contracts, gamers receive automated tokens from the publisher in exchange for payment with existing supported cryptos.
Unlike traditional video games, blockchain games let players convert their gaming items and earnings into real-world money. This allows players to trade their crypto earnings and their gaming items on NFT marketplaces.
In GameFi, the rewards come in different forms such as avatars, virtual land, weapons, and costumes. On the contrary, traditional video games won’t generate any financial returns to players. Moreso, the gaming company fully controls the in-game assets, cutting put the players from potential benefits.
However, GameFi gives players full control over their in-game assets and will soon take over from traditional gaming.
Top 6 GameFi Projects to Try Out In 2022
If you’re looking to make some money while having fun, then here are some GameFi projects to watch out for in 2022.
Illuvium is one of the most anticipated DeFi games in the gaming business. The game is a 3D open-world fantasy role-playing metaverse that lives on the Ethereum Blockchain. It is the first AAA project among DeFi games. This means that it is a high-budget, high-profile game produced and distributed by well-known publishers.
Created with Unreal Engine 4, Illuvium is a 3D open-world game. The game boasts a beautiful open environment that visually stimulates its players. It will also likely be financially lucrative as an open-world auto battler and NFT creature collector.
The goal of the game was to become one of the rare play-to-earn games that connect with traditional gamers. The game enables players to earn $ILV rewards for winning contests and tournaments.
$ILV hit an ATH of $1,925 in November 2021 but has been down 70% since then. However, Illuvium promises to be an interesting project and has appeared on lists of the most anticipated games of the year.
Axie has been one of the biggest and most rapidly expanding GameFi projects since 2021. According to CoinMarketCap, the market cap is over $2 billion. There are an average of 120,000 daily gamers using the protocol’s rare and premium NFTs.
Axie Infinity was launched by a Vietnamese company called Sky Mavis. NFT Gamers may engage in the platform and contribute to its development or use AXS tokens to make a financial investment. This has increased by 17,000% in the last year.
In Axie, users receive rewards in Smooth Love Potion (SLP) tokens. These tokens are the in-game currency and are useful for improving the traits of their pets. SLP can also be converted to fiat using crypto exchanges like Binance.
The developers now plan to transition to a more decentralized structure that gives players control over the billion-dollar treasury. Moreover, the game also continues to add improvements to the storyline, graphics, and overall design.
DeFi Kingdoms is one of the most enticing play-to-earn games in the GameFi ecosystem. The game operates on the Harmony One blockchain where users accumulate tokens after winning missions.
DFK has created unique gameplay where players can level up in their in-game NFTs by participating in daily quests. This would in turn increase their earnings over time. Also, players can engage in liquidity mining of the in-game currency, JEWEL, to generate passive rewards.
The game also offers a cross-chain expansion to Avalanche. This allows it to significantly increase the locked value and tap into user bases on other blockchains.
Xchange Monster offers players a decentralized world by providing them with a fully regulated platform. The all-in-one game features products including, a payment gateway with fiat on-ramps, an NFT marketplace, a trading exchange, and a wallet application.
The game captures a massive market opportunity by bridging the gap between game creators and communities. Xchange Monster also offers low transaction costs and immediate access to in-game NFTs, which can be swapped directly for fiat currencies.
Upland is based on the EOS public blockchain. The property trading game enables users to buy, sell and trade virtual properties mapped to real-world addresses. As a player, you can own property virtually and build your own online empire.
The ultimate goal of the game is to bring the benefits of blockchain technology to the general public. Upland is out to create a sound economy that blurs the boundaries between the real and digital worlds while providing a decentralized marketplace on which stakeholders can interact directly.
This is a sci-fi adventure game revolving around a metaverse with NFT aliens. The game went live in December 2020 and is one of the world’s most popular GameFi projects at the moment.
Players who complete their missions earn Trillium ($TLM), the game’s native token. Players can use the tokens to take part in special missions in the game. In Alien Worlds, players visit various planets and can form a group where they collectively take on different missions.
A distinctive feature of the game is its cross-chain bridge feature that enables players to teleport to and from other blockchain networks including BNB Chain and Ethereum.
With the growing popularity of blockchain games, the world will most likely see an increase in the number of companies building up the metaverse. As of March 2022, there are more than 1,400 blockchain games listed in DappRadar.
We now have popular games across multiple blockchains such as Ethereum, BNB Smart Chain (BSC), Polygon, Solana, Harmony and more. As the technology continues to develop, we can expect the GameFi trend to grow at a faster rate.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.