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Future Seems Promising for GameFi, With Several Factors Aligning to Propel Its Growth

Last Updated March 6, 2024 9:06 AM
Guest Writer
Last Updated March 6, 2024 9:06 AM
By Guest Writer
Verified by Ana Alexandre
Key Takeaways
  • The potential for GameFi to scale and integrate into mainstream gaming is significant.
  • Technologies like account abstraction pledge to make games more suited for mass users.
  • As we look ahead, the integration of social features in GameFi is also expected to play a pivotal role.

The following article is written by Yaniv Baruch, the Chief Operating Officer for white-label Web3 games provider Playnance.

Frankly speaking, 2023 was not marked by any breakthroughs in the blockchain gaming market. What’s more, the market capitalization of the 183 largest gaming projects during 2023 remained  between $4 billion and $7 billion, dropping by 86% from the all-time high in 2022. Last year, almost a third of blockchain games closed down .

However, new technologies, the entry of big brands, and overall market conditions represent significant growth opportunities for the industry in 2024. Experts predict  the growth of the global blockchain gaming market to $650 billion by 2030.

The GameFi industry is maturing, with major developers from traditional gaming launching new blockchain products and some crypto games appearing in the biggest game stores. It highlights the expansion of Web3 gaming to a broader audience, and here is what could take GameFi to new heights in the coming months.

GameFi Sectors That Could Lead the New Market Stage

In today’s blockchain gaming, products with the most uncomplicated and engaging gameplay are in the highest demand.

One of the most promising directions is iGaming, a segment where minimal time passes between making a gaming decision and receiving feedback. One application of this mechanic is trading: players predict the direction of a crypto price movement for the next few-second time frame.

This is highly engaging. For example, UPVSDOWN – the title is based on this idea – has become the top game on Polygon by transaction count. This approach also lowers the entry bar to trading for broad audiences, unlocking the potential for GameFi’s further expansion.

Then, move-to-earn games allow individuals to capitalize on what people already do, like walking, running, doing fitness, and more. Since the revolutionary game StepN emerged, a plethora of other games in the move-to-earn segment have popped up.

For example, Sweatcoin has an extremely low entry threshold and gives 1 SWEAT token for every 1,000 steps, while the Step App game is even endorsed by Olympic champion Usain Bolt .

Widely adopted fitness trackers give people a decent motivation boost to achieve their personal milestones in exercise. Move-to-earn games promise to take this motivation to a new level.

Tech Developments for the New Surge in GameFi

One of the trends in GameFi is the emergence of blockchains designed explicitly for gaming. In 2023 alone, 76 new L1s, L2s, and appchains of this kind appeared  in the market.

Speaking of general-purpose blockchains, the latest developments in Polygon are particularly inspiring. I believe the ecosystem could serve as a backbone for future GameFi, mainly thanks to advancements in zk-proof technology that expand scalability and reduce fees.

Polygon: ZK and more

Part of the Polygon team comes from a gaming background, giving them a keen understanding of the industry’s needs and a strong commitment to meeting them. Last year, Polygon Labs collaborated with Immutable to launch an EVM-compatible blockchain explicitly designed for games.

On top of that, Polygon has recently introduced its chain development kit that allows for building ZK-powered app chains customized for specific games’ needs. Also, the project’s newly launched zkEVM chain lets developers create EVM-compatible ZK games. All these solutions represent an environment where everyone can create user-friendly yet powerful games.

White-label games

Another significant milestone in the GameFi evolution is the spread of white-label blockchain games. This technology enables teams to launch games under their brand using ready-made software.

As a result, creating one’s own game can literally take just a few days or weeks, saving hundreds of thousands of dollars on development. I see demand for B2B solutions in the GameFi market, which is why we have launched a product in this niche.

Account abstraction

One of the problems with Web3 gaming is the complexity of its UX. A sophisticated user flow creates obstacles for the mass audience to adopt GameFi. This includes carefully managing private keys and signing numerous transactions, among other things.

Account abstraction is a technology that can significantly improve the user experience in Web3. In upgraded accounts, users can sign multiple transactions simultaneously, recover keys in case of loss, and not worry about gas fees. All of this appears to be something that could substantially enhance UX and mass interest in Web3 games.

Big Studios Are Tapping Into GameFi

Non-fungible tokens (NFTs) have enriched gaming with something it lacked — actual ownership and monetization of in-game items. In traditional titles, those assets don’t truly belong to players, and game developers can manage them as they see fit.

In blockchain-based games, players actually own their items. They can create, collect, and trade in-game NFTs, which significantly enhances gameplay and creates a whole array of new opportunities.

We already see top video game companies show interest in the potential of non-fungible tokens. For example, Konami Digital Entertainment has opened job positions for NFT and Web3 specialists, while Take-Two, the publisher of Grand Theft Auto, has announced the release of its blockchain game.

Market data indicates that three-quarters of the largest game developers have already tapped into Web3. Soon, we will see new exciting products emerge in this niche.

Does the Future Look Bright for GameFi?

A unique mix of opportunities for growth is present in today’s GameFi. The development of blockchain infrastructure creates a foundation for a surge in Web3 gaming from a technical perspective.

The influx of major brands promises to enrich the niche with capital and human resources, while technologies like account abstraction pledge to make games more suited for mass users. Alongside Bitcoin (BTC) halving and the anticipated bull market, this creates the conditions for breakthrough growth in GameFi across 2024-2025.

About author: Yaniv Baruch  is the Chief Operating Officer for ready-to-operate Web3 trading game Playnance. He is an experienced fintech professional who started his career as a Stock Trader at RBC in 2004. Since then, he has held key roles in reputable fintech companies like Anyoption, where he served as the Head of Trading for seven years, and Daweda Exchange, which he founded and led as CEO. Yaniv also worked at Oobit, where he focused on driving growth and shaping the future of crypto payments. Yaniv has acquired valuable expertise in the Web3 space and a comprehensive skill set in financial markets, fintech, play-to-earn gaming, leadership, and blockchain technology.

Disclaimer: The views, thoughts, and opinions expressed in the article belong solely to the author, and not necessarily to CCN, its management, employees, or affiliates. This content is for informational purposes only and should not be considered professional advice.

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