With the popularity of the NFT, DeFi has started to wane, and the industry's demand for low volatility and low gas fees has further stimulated the boom of blockchain games, as evidenced by GameFi which has gone viral with the development of NFT. The recent hit NFT has formed a consensus in the crypto industry that NFT will further make cryptocurrency recognized outside the crypto circle and drive industries such as arts, games, sports and also cryptocurrency itself to thrive.
Improved performance of public chains behind the widespread GameFi success
GameFi has witnessed widespread success thanks to the improved performance of public chains. The early blockchain games mainly had their data stored on the Ethereum chain. However, massive game data and transactions could easily cause network congestion as well as excessive transaction fees, both of which severely affected the user experience. It was also difficult to resolve conflicts between game upgrades and the immutability of the blockchain. Fortunately, the Layer 2 solution and many high-performance public chains have emerged, as the underlying architecture to underpin the development of GameFi.
Cryptocurrency has been looking for appropriate application scenarios in response to public demand. The gaming industry at the intersection of cryptocurrency and traditional industries seems to be a perfect answer with its huge user base. In other words, driven by a passion for games, even crypto newbies may engage in the cryptocurrency industry. In the future, we are very likely to see game giants such as Activision Blizzard and EA march into this field and bring blockchain games to the general public.
According to Token Terminal, in the past 30 days, "axis Infinity", a popular encrypted game platform on Ethereum, has raked in more than $220 million in revenue, making itself the largest source of income for all DeFi protocols and blockchains including Ethereum.
GameFi is a new niche market driven by NFT
Unlike the DeFi concept that swept the world last year, GameFi integrates both DeFi and NFT. Simply put, GameFi stands for Game Finance, which means on-chain games combined with decentralized finance, and the NFT functions as the in-game items in GameFi.
Fueled by the popularity of the game, the value of NFT as an in-game item immediately soars. The game will also inject new vitality into the NFT and give a huge impetus to the development of the cryptocurrency industry.
According to data from DappRadar, as of the end of March 2021, there have been over 50,000 active wallets interacting with smart contracts related to blockchain games, and this figure has even soared to 360,000 in the second quarter, an increase of 600%. At present, about 370,000 wallets remain active in blockchain games every day, and the number is still on the rise.
In terms of the development of Layer 2, when operating on side chains or Layer 2, people often sacrifice part of the security in exchange for higher efficiency. Significant upgrades can be expected in Layer 2 and side chains next year, and at that time the side chain will push NFT into the spotlight. Considering the cryptocurrency industry’s interest in side chains and Layer 2 solutions, there will be a lot of room for improvement in this field. We have every reason to believe GameFi is taking off in a way beyond our expectations.
CoinEx Launches GameFi Trade-driven Mining: Mine Fortune Code & Trade to Win 1,000,000 CET
To celebrate the listing of a series of high-quality GameFi tokens on CoinEx, CoinEx has launched a 10-day GameFi Trade-driven Promotion to give back to GameFi fans with huge rewards of 1,000,000 CET.
Twelve tokens involved in this promotion are MANA, SAND, TLM, ALICE, GALA, AXS, TOWER, SLP, YGG, ILV, SKILL, and DPET. The markets include MANA/USDT, SAND/USDT, TLM/USDT, ALICE/USDT, AXS/USDT, SLP/USDT, YGG/USDT, GALA/USDT, ILV/USDT, TOWER/USDT, SKILL/USDT, and DPET/USDT.
During the promotion from 00:00 August 10, 2021 to 00:00 August 20, 2021 (UTC), users (KYC verified accounts) can join the mining on the trade-driven mining promotion page, and make trades in any of the above markets. The reward of 100,000 CET will be allocated to all participating KYC accounts based on their actual executed trading volume at 0:00 (UTC) on a daily basis.
The combination of a large group of game players and cryptocurrency provides a golden opportunity for the development of GameFi, making for its irresistible prosperity. We look forward to seeing this boom make a breakthrough in blockchain applications.
At present, the GameFi market segment has gathered a group of enthusiastic participants, and the trade-driven mining and NFT, combined with games and other activities, have greatly improved the liquidity and drawn increasing attention to the cryptocurrency industry. GameFi will embrace a promising future!
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