In terms of revenue, the gaming sector is anticipated to reach over $200 billion in 2021. Blockchain and NFT technologies are an excellent match for the gaming industry, and they might be about to take off. For NFT-based gaming, where the tokens are embedded right into the games, there is now only a small niche market. However, with significant funding being generated for NFT platforms, things are starting to slowly change on that front.
Most digital assets have been impacted by the bear market because users have become sick of suffering losses. One of the NFT categories that experienced a downward trend as a result of the lower investments was gaming. Billions of dollars were invested by cryptocurrency speculators into a volatile market. The outcome wasn’t all that great, and many people failed as a result. Prices for assets with less value than what they were sold for rose as a result of the capital inflow.
There have already been a number of NFT game marketplaces mentioned, albeit most are still in the planning stages. The GameStar exchange is one NFT gaming market that is currently active. Users can purchase, sell, and trade gaming NFTs using smart contracts on this decentralized P2P exchange. Although the platform is based on Polkadot, it supports numerous cross-chain transactions. The network enables simple and secures messaging for users, and individuals are in charge of managing their own private keys.
NFTs for gaming is a gift of Web3 technology, which has flourished in recent years. On open blockchains like Ethereum, Cardano, Solana, etc., these NFTs represent ownership of game assets. These NFTs combine gaming and finance, creating the new domain known as GameFi. It is now possible to utilize these resources outside of the gaming industry because of GameFi’s accessibility. Third-party exchanges are able to purchase these assets and then sell them for a profit.
Due to the prevalent negative tendency, there are issues with the worldwide NFT market. Gaming non-fungible tokens are included in the downward trend for NFTs. There is little hope, despite efforts by certain businesses to resuscitate the market. Major brands like Sony, Axie Infinity, and others have chosen to stay away from this market in order to protect their financial investments.
The whole purpose of blockchain games, NFTs, the new metaverse hoopla, and everything else associated with “Web3” is to support and “rescue” the ailing cryptocurrency market. None of those items are intrinsically useful, interesting, or desirable as products. Businesses can keep yelling that Web3 is “the future,” but the common person doesn’t see anything useful. Even crypto bros simply perceive these opportunities as ways to make money; they aren’t particularly interested in the technology or product itself. And it all comes back to bitcoin, which is a complete failure as a medium of exchange. Its only practical purpose is as a speculative investment, and even that is a poor one because its value of it is solely dependent on the marketing hype.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.