Bitcoin halving will bring mass adoption to web3 gaming | Opinion

In the past few months, there has been great excitement in the world of cryptocurrencies as the long-awaited Bitcoin halving approaches. This event has historically caused a significant increase in Bitcoin‘s price before it occurs, and this time is no exception. Bitcoin has surpassed previous record highs much earlier than expected based on the 4-year price pattern.

The rise in the market has significantly influenced the altcoin scene, specifically the web3 gaming segment. Previously, memecoins and AI initiatives held the limelight in altcoin discussions. However, investment is shifting towards GameFi projects as evidenced by CoinMarketCap’s data. Notable blockchain gaming platforms such as Gala Games, Pixels, and Floki have recorded impressive gains of over 50% within the last week.

A gamer’s dream

Over the past few decades, the gaming industry has seen astronomical expansion, moving from being just a fun pastime to a financially thriving business. Previously, making a living by playing video games was an achievable goal only for successful streamers and professional players. But now, with the emergence of web3 gaming, this dream becomes attainable for a larger group of people.

In the ongoing cryptocurrency bull market, GameFi is being driven by the same dream as before, making it a significant trend. Similar to past cycles, individual investors are expected to be attracted to web3 gaming initiatives, seeking to monetize their pastimes.

Web3 gaming making a comeback

Based on Footprint Analytics’ data, there has been a 54.67% surge in web3 gaming adoption compared to the 2023 average. This growing trend is predicted to gain even more momentum. Smaller game studios have an excellent chance to pioneer and thrive during this period, potentially ushering in a fresh era of immersive and financially lucrative games.

Bitcoin halving will bring mass adoption to web3 gaming | Opinion

At the close of last year, Sky Mavis, the team behind Axie Infinity, reached a valuation of $3 billion. The question is: What factors prevent up-and-coming blockchain gaming studios from matching this success and challenging industry leaders like Konami and CD Project Red?

This time it’s different

A common criticism of many blockchain games is that their gameplay isn’t engaging enough. This means that instead of being enjoyable and entertaining, these games can feel more like a tedious task or obligation. In essence, they’re missing out on the enjoyment and excitement that are typically found in conventional games.

Despite the previous criticism, GameFi projects have been gaining ground with their advancements. Although the gaming community remains cautious towards crypto, the benefits of owning unique in-game assets as NFTs and having a say in game development through DAOs are compelling prospects for the future.

Big players are stepping in

Major gaming companies like Ubisoft, Square Enix, and Sony are gradually exploring the web3 gaming sector. Their initial forays, such as Ubisoft’s “Champion Tactics” and Square Enix’s “Symbiogenesis,” might appear basic and innovative, but they mark the beginning of blockchain games developed in traditional game development studios.

In collaboration with Sony’s latest patent for a “super-fungible token,” these initiatives signify a shift from a solely entertainment-focused business approach to one that includes economic worth, player possession, and community-led creation. Pioneering moves by Ubisoft, Square Enix, and Sony may function as a roadmap for smaller studios and independent developers considering involvement in the web3 gaming industry. Monitoring their triumphs and hurdles will be vital for these entities.

The present and the future of gaming economies

Blockchain technology, originally created without gaming in mind, surprisingly aligns with the gaming world. In games, developers construct intricate universes, complete with distinct currencies that can experience inflation based on players’ perspectives. These realms often include marketplaces and manufacturing systems reflecting reality. Additionally, they may incorporate player-versus-player (PvP) interactions akin to hunter scenarios and grinding activities similar to gatherer roles.

In this scenario, a game featuring its own economy doesn’t function in seclusion; instead, it fosters ideal conditions for Decentralized Finance (DeFi) and GameFi components to prosper. The blend of blockchain technology and gaming gives rise to innovative opportunities for developers to construct self-sufficient economies within games where currency holds significance not only inside the game but also beyond its borders.

The GameFi industry faces several challenges, such as scalability problems, suboptimal user experiences, and regulatory obstacles. To enhance the web3 gaming experience for all users, crypto transactions should function seamlessly behind the scenes, shielding less tech-savvy players from complexities.

Despite this, the gaming industry has a great deal of promise for revolutionization through blockchain technology. New gameplay mechanics, earning structures, and incentives may emerge as a result. It’s hoped that exploitative monetization methods will be replaced by equitable gaming economies, where value is generated and distributed among players, developers, and content creators across various platforms.

What to expect in the coming months 

With Bitcoin’s ongoing price surge, there’s optimism that GameFi projects will persistently expand. Nevertheless, some warning signs, such as increasing risk levels, hint that the market might be nearing a correction in the near to medium-term future.

The web3 gaming sector is projected to experience significant expansion following the Bitcoin halving, despite uncertainties. After Bitcoin stabilizes in price and its influence wanes, the altcoin market is likely to pick up momentum.

Macroeconomic conditions are influencing the situation, but if the global economy stays strong, we can expect altcoin prices to rise in the next few months. It’s hard to identify an exact timeline, but the Altcoin Season Index provides valuable insight into market trends and indicates when individual investors may start buying gaming coins in large quantities.

Bitcoin halving will bring mass adoption to web3 gaming | Opinion

Can Picak

Picak, as CEO and co-founder of Diga Labs, spearheads this innovative firm specializing in creating web3 gaming infrastructure and compatible GameFi solutions. His proficiencies lie in blockchain gaming, marketing for web3 applications, devising brand strategies, nurturing community involvement, and utilizing AI, IoT, and vast data sets to propel startups forward. With Picak at the helm, Diga Labs introduced its first blockchain game during a tumultuous cryptocurrency market period, resulting in a pivotal moment for the company’s success. The Diga Labs network includes Eldarune, an adaptable game development studio, and Digard, a provider of web3 gaming infrastructure.

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2024-03-31 16:42