A recent report from Nansen revealed that the Game Finance (GameFi) sector is expected to see strong growth by the end of the decade, driven by decentralized economic systems, the rise of AAA games on Web3, and the growth in popularity of role-playing games (RPG). .
What's behind the growth of Web3 GameFi?
Blockchain analysis company Nansen ai/articles/future-of-gamefi-in-web3″ target=”_blank” rel=”noopener nofollow”>revealed that the Web3 GameFi sector will experience strong growth throughout the decade, with projections suggesting a compound annual growth rate (CAGR) of 68% from 2024 to 2030.
This potential increase could see the sector reach $301.5 billion over the next six years, driven by decentralization, true asset ownership, in-game economies, and growing community participation. According to the report, the decentralized nature of blockchain offers players true ownership of in-game assets such as rare items, characters, and nfts.
This differentiates the GameFi sector from traditional gaming, offering “players a unique combination of entertainment and financial incentives that traditional gaming platforms cannot match.”
It also adds “tangible, real-world value” to players' in-game achievements and improves engagement with its additional incentives for progression. Nansen highlighted the growing popularity of RPGs as they were the most popular Web3 game genre in 2023, accounting for 22% of all games.
Furthermore, the rise of AAA and AA games also indicates growth in the sector despite representing a small percentage of Web3 games. AAA and AA titles on GameFi represent 6% of Web3 games, surpassing the 4% mark of traditional Web2 AAA and AA titles on Steam.
The key to the future expansion of the sector
According to the report, community engagement is a key factor in building strong player bases and maintaining user interest in Web3 games. As such, social media platforms like Discord, x, and Telegram have become vital tools for developers to interact with players and foster a sense of community and belonging to the gaming ecosystem.
An active and dedicated community plays a critical role in the long-term success of gaming in a decentralized environment. Additionally, Nansen noted that the structure and mechanics of game economies are also crucial factors that drive player interaction and engagement.
Games like Axie Infinity, Illuvium, or Seraph use their single or dual token models and nft marketplaces to create stable economies where players receive rewards for participating and can monetize their in-game efforts.
At the European Blockchain Conference (EBC10), Sebastian Borget, co-founder and COO of The Sandbox, stated that blockchain games had become a gateway to Web3. Borget highlighted the growth of the sector and the shift towards empowering the creator economy to offer a “new approach” to the challenges of traditional Web2 games.
However, the report noted that security remains crucial to customer trust and engagement, as large on-chain attacks can damage player trust in GameFi. Despite advances in security measures and user education, it remains a critical issue for the entire crypto industry.
Total crypto market capitalization is at $2.24 trillion in the three-day chart. Source: TOTAL on x/nGFLKZq5/" target="_blank" rel="noopener nofollow">TradingView
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