According to Binance’s half-yearly research report, the number of GameFi projects continues to rise steadily, reaching 1,551 games as of June 2022. GameFi, which combines the terms “game” and finance,” includes both gameplay and financial incentives which offers the players the chance to own digital assets in the virtual world, along with the option for interoperability, by bringing these assets across various virtual worlds.
Binance’s report shows that GameFi’s huge potential comes from integrating blockchain technology, gaming financialization, and NFTs, all of which has contributed to the significant growth of GameFi.
GameFi has also brought in a new wave of players into the blockchain community. The gaming market is estimated at around $175 billion, and GameFi market cap is less than 4% of that at $6.2 billion.
“The first half of 2022 saw tangible actions taken by traditional gaming companies to enter the blockchain gaming space,” the report said.
Square Enix sold $300 million worth of intellectual property to fund its blockchain initiatives in May 2022. Meanwhile, Epic Games raised $2 billion for its metaverse aspirations.
Other traditional gaming companies like Ubisoft, Electronic Arts, and Tencent have also entered the blockchain gaming space.
“This means an increased competition for existing Blockchain game companies; it is a positive sign for the industry in terms of driving innovation,” the report added.
(All information was provided by Outlook)
Check out the industry-leading META Business podcast where we discuss the intersection of business and the metaverse