When you searched NFTs or Non-fungible tokens a few years back, you will get a handful of results stating everything about them. But today, endless results are showing up. The NFT boom in 2021, has made the blockchain popular and brought a new range of use cases. In the year 2022 from the beginning, the crypto market faced a backlash. Stablecoins failed and the crypto community saw the worst crypto winter in its history. The coins went to their lows and people thought it would affect the sales of Non-Fungible tokens that are solely dependent on the cryptocurrency. Meanwhile, the NFT marketplace for games, Art, Sports, and other genres was coming out one by one.
Surprisingly the records of the NFT market came in contrary to prove all the misconceptions wrong. It has been found that the sales volume of the 1st quarter of 2022 stood at $12.4 billion which is an all-time high comparing the previous years. It broke the record of its previous year’s last quarter by more than $2 billion dollars. So NFTs have demand what about the NFT games?
Understanding NFTs in Gaming platforms
NFT games are something where the in-Game items like accessories, weapons, avatars, costumes, weapon skins, Maps, and more are made as an NFT. unlike Pay to play games, you can sell these NFTs back from where you got them-The NFT marketplace for games. There is more to it where the players get rewards when they play.
Game developers and gamers faced the shortcomings of the current pay-to-play games. It included advertisements in the middle of the games, asking to pay for a premium game to avoid ads, paying for in-game items, and more. These difficulties made the developers develop the next-generation gaming platforms. They brought in Blockchain in case they need decentralization and NFTs to give definite ownership to gaming assets on the blockchain. This makes them easy to sell and resell again in the marketplace. They also brought in the concept of renting the assets to their fellow players.
The concept of blockchain brought a whole new gaming experience for the gamers offering fun and earnings at the same time.
NFT games and the Misconceptions
NFTs were criticized as a bubble and a Ponzi scheme at the beginning. When governments started using NFTs for various documentation, people started to actually believe in the Non-Fungible Tokens.
In the same note, people also criticized NFT games as Pyramid schemes. It’s a scheme where existing people who use the platfrom solely depend on the money which was invested by new participants. But NFT games proved they are not so. You might wonder why people thought these games would fail in the crypto crash when they actually survived.
They thought Non-Fungible Tokens solely depend on cryptocurrencies. Since NFTs can be bought through ETH and when ETH goes down, it takes NFTs along with it. The thing is, they are not entirely dependent on the cryptos. They just use the same blockchain as that of cryptocurrencies. They can also be bought for fiat currencies directly in many NFT marketplaces.
NFT games are surviving
It is estimated that around 71 million active wallets were transacting Non-Fungible tokens in the middle of March during the crypto crash. This proved the demand for NFTs is still in place and people never slowed down from buying NFTs, on the other hand, it is also found that many of these active wallets were from NFT gaming platforms.
So it is evident that the crypto crash though affects the overall system, and the NFT games are managing to survive amidst the Strom. The main reason for this is the basis on which these NFT games are functioning.
As mentioned earlier, if the gaming platform operation depends on the demand for the game, it will have to go down with the crypto crash. On the other hand, if the game developers concentrate on the game and incorporate blockchain efficiently, the game is nothing but a success.
There are many games that came with this as their vision. They function on the blockchain for their utility and their decentralized operation globally.
NFT gaming is expanding its wings throughout the gaming business. People seek out these games for entertainment and profit, prompting many game developers to incorporate NFTs into their creations. Since NFT games will be the new generation of gaming, every game will eventually incorporate blockchain. NFT gaming marketplaces in the future will allow gamers to use their in-game assets in all the NFT gaming platforms irrespective of the developer. This is introducing the interoperability nature of the blockchain into the gaming Industry.
With Metaverse taking over the globe, NFTs will have ultimate control as the pillars of the digital realm. Even during the crypto crash, NFT games and the NFT gaming business are experiencing a boom. The number of active wallets on these platforms is considerable, demonstrating their long-term viability and domination.