Since July, the asset price of the NFT game sector has soared. In less than a month, AXS registered a staggering growth rate of over 1,138%, and NFT game assets such as SAND and TLM shot up by more than 200%.
Thanks to the flourishing NFT game sector in the trading market, GameFi, an NFT segment, has regained momentum. Since Q2, games and collectibles have become more popular than sports and the arts. Led by the P2E (Play to Earn) game Axie Infinity, the field of GameFi has never been more dynamic.
The derivatives of GameFi have revolutionized crypto finance. GameFi offers financial products as games and gamified DeFi rules, covering the use of NFT game items for higher returns, the introduction of the battle mode, etc. Blockchain games have always been essential to the whole sector, and blockchain projects have also long been trending towards games. Compared to conventional yield farming, GameFi projects are more interactive and entertaining. Hence, GameFi attracts substantially more beginners to join the race as compared with DeFi.
At the same time, for retail traders, GameFi offers more room for action and more profit opportunities. In conventional mining projects, the size of returns depends on the investor’s liquidity proportion in the whole mining pool. High-quality projects are all snatched by the deep-pocketed, and retail investors often gain very little while risking considerable impermanent losses. On the other hand, turning mining projects into “games” makes it more likely for retail traders to profit.
Recently, as it lists a series of high-quality GameFi tokens, CoinEx has officially launched a 10-day GameFi trade-driven mining event. All participants can share yields according to the shares of effective executed value and receive CET rewards on 00:00 every day (UTC). The exchange has prepared 1,000,000 CET in total to give back to GameFi fans.
In fact, a recap of CoinEx’s growth will tell us that the “CoinEx effect” is taking shape. Before GameFi, CoinEx had demonstrated superior performance in the boom of DeFi+NFT. From DeFi to GameFi, CoinEx has always remained a treasure box attracting thousands of developers and users.
DeFi
As one of the most prominent drivers of the DeFi innovation model, there is no doubt that CoinEx has become a pool of high-quality DeFi projects.
How did CoinEx drive extensive project growth that gives rise to the noted “CoinEx effect”?
There are two reasons for the extensive growth of DeFi projects on CoinEx. On one hand, CoinEx is a beneficiary of the DeFi boom as a result of infrastructure upgrades. On the other hand, CoinEx owes its success to its operation philosophy, that is, observing the market trend and finding promising projects while remaining dedicated to product development in the bear market.
As an inlet of traffic for the crypto asset community, CoinEx injects fresh vitality into the DeFi ecosystem with its massive asset streams. Meanwhile, the exchange is also exploring ways to address the current defects of the DeFi infrastructure. It is no exaggeration to say that CoinEx was one of the most forceful drivers of the DeFi wealth effect in 2020. Right now, CoinEx’s DeFi ecosystem spans oracle, staking, decentralized exchanges, etc. From spot trading through margin trading to contracts, CoinEx offers comprehensive DeFi service to users, making it one of the few one-stop exchange platforms for DeFi investment.
When screening for high-quality DeFi token projects, CoinEx seeks results both from within and outside. Externally, CoinEx has maintained different levels of exchange and collaboration with project teams. The key lies in deeper engagement in DeFi projects to fully empower the project team through capital, technology, optimized transactions, liquidity models, token economy, etc. At the same time, CoinEx helps project teams improve the market positioning of their product and their future development plan. This approach clears away many difficulties and pain points for project developers, enabling them to go all-out in the CoinEx ecosystem and in the DeFi field.
In the sense that CoinEx managed to gather plenty of high-quality projects, the “CoinEx effect” is constantly influencing DeFi development as it brings greater returns for users.
NFT
Similar to the early generation of DEXs from the DeFi boom, some NFT exchanges have also made their debut in the crypto market, primarily including exchanges focusing on games, art collectibles, player card collectibles, virtual reality, etc.
Unlike last year, 2021 has opened a new era where anything can be turned into NFT. In the face of opportunities, centralized exchanges don’t want to miss NFT, which is why they are all launching “NFT plans”. At the present stage, traditional centralized exchanges involved in the planning of NFT projects include Binance, Huobi, BiOKEx, CoinEx, etc. All these exchanges have started to list NFT tokens.
As most users are strangers to on-chain operations, the threshold for trading NFT assets is high. Centralized NFT trading venues will make NFT trading a lot more accessible and bring more intuitive and more sophisticated trading experiences. Centralized trading platforms will also become an important channel for the popularization of NFT concepts, market education, and liquidity expansion to further the promotion of NFT.
Of the many projects listed on CoinEx, NFT mainly covers six vertical eco-fields: digital art, games, the metaverse, social media, NFT+DeFi, and infrastructure. Among the many NFT segments, there are many star projects like AXS and SAND, which have entered the NFT spotlight and brought steady returns to users.
GameFi
Compared with statistics in June, the major NFT trading markets achieved sharp rises in sales last month, with Axie Infinity leading the charge. The market confidence significantly rebounded thanks to the surge in GameFi. However, in terms of social media popularity and data highlights, the GameFi boom is nowhere near the 2020 carnival of DeFi yield farming when TVLs easily reached tens of millions of dollars.
In light of market thresholds, access limits to DeFi mainly include the use of such tools as crypto wallets and decentralized exchanges, which are considered “one-time” thresholds. GameFi, on the other hand, comes with higher thresholds. For example, to get started with Axie Infinity, you must first purchase 3 elf pet Axies that cost thousands of dollars. Moreover, it also takes a lot of time and energy to explore the numerous pet combinations, different card strategies, etc.
Behind different games, there are public chains with different features.
For example, the feature of the NFT-focused Flow chain is the focus on game public chains and a moderate level of development difficulty. Yet the ecosystem of the Flow chain is only getting started. The Wax chain, also a chain focusing on games, is uneventful due to its review mechanism for developers. The Ethereum chain once again shut out a large number of developers and users with its high gas fees and low speed.
In comparison, public chain resources at CSC, CoinEx’s smart contract chain, are better and more inclusive.
In its 2021 roadmap, CSC said its goal is to build cross-chain financial infrastructure that unlocks the Internet of Value. A key step in this process is to foster a strong developer community for the fast growth of original and innovative developers with first-class performance.
CSC defines itself as a matchmaker. In other words, CoinEx will provide first-rate underlying infrastructure and service and offer guidance to high-quality projects. Furthermore, quick verification will be available to the growth optimization model of projects through resources that include CSC, the seed fund, CoinEx ecosystem and community, etc.
In addition, backed by the “CoinEx effect, CSC has drawn increasing players. The ubiquitous Internet reminds us of the massive influence of the traffic economy. In this regard, CSC’s unique advantage makes it the best way for developers and users to foster and promote GameFi.
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