Home News Huobi Research: GameFi apps have revived interest in blockchain games

Huobi Research: GameFi apps have revived interest in blockchain games


The research division of the Huobi cryptocurrency exchange has linked the growing interest in blockchain-based games to the direct impact of the development of GameFi.

Thus, GameFi implies the use of non-fungible tokens (NFTs), decentralized finance (DeFi) and other elements within the framework of the Play-to-Earn concept.

The researchers recalled that at the end of 2017, the popular Ethereum-based CryptoKitties game peaked at 140,000 daily active users and 180,000 daily transactions. However, within a few months, both indicators collapsed by more than 90%.

Since June 2021 the rapid growth of GameFi projects has begun

Experts noted that since June 2021, the rapid growth of GameFi projects based on blockchain has begun. As an example, they cited the NFT game Axie Infinity. A few months after its launch, its daily revenue reached $9.72 million, surpassing Tencent’s Honor of Kings.

“Dapp ratings show that five of the top nine apps represent GameFi. Since the summer of this year, the number of unique users of the sector has exceeded the DeFi indicator,” the experts stressed.

The concept of Play-to-Earn is not new. It has long entered the gaming industry, for example, implemented in World of Warcraft or League of Legends. But, according to the researchers, the success of the new generation of blockchain games was ensured by the GameFi elements; which allow transferring the earned value to the real world. Huobi Research has identified the main success factor; reducing transaction costs in the in-game economy.

Free trade in-game materials and in-game currency

Huobi Research experts pointed out two main aspects due to which this was achieved: free trade in-game materials and in-game currency. The third important point is securing property rights through NFT.

“This is not only a comparative advantage that traditional game developers have never had. But also a reflection of the true value of blockchain technology in the gaming industry,” Huobi Research noted.

Recall that previously, Justin Kan, the co-founder of Twitch video streaming service, announced the launch of the Fractal marketplace for gaming NFTs. He is implementing the project together with a group of industry entrepreneurs.

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