While GameFi is bringing many into the crypto space, the value of many newcomers portfolios declining
Many games like Axie Infinity enjoyed parabolic growth followed by catastrophic decline. However, the passion and energy around the GameFi category remains strong and we suspect there will be a breakthrough game released in 2023.
GameFi is a term based on the development of new games that are a combination of “game” and “finance” that has been made possible by blockchain technology. They offer incentives to play the game such as money, rather than paying for it upfront.
In-game rewards (now in the form of blockchain tokens) are often achievable through tasks, battles and game levels. The games that use in-game rewards heavily rely on what designers call a grinding mechanic to provide progression.
The State of GameFi 2022 survey is the first in an ongoing series of yearly reports that offer insight into the shape of the industry. Thanks to all who participated for their thoughts and perspectives.
In June 2022, Chainplay surveyed 2428 investors across the globe on GameFi. What we found did amaze us:
- 3 in 4 investors worldwide joining crypto because of GameFi. 68% of GameFi investors joined the market less than a year
- 89% of crypto investors worldwide saw their GameFi profits decrease in the last 6 months with 62% of them losing more than 50% of their profits
- In 2022, investors worldwide spent an average of 2.5 hours per day participating in GameFi, which is down 43% compared to 2021 (4.4 hours)
- 73% of the respondents shy away from GameFi investments because they are afraid of rug pulls, Ponzi schemes, and pyramid schemes projects.
- 81% of GameFi investors prioritize the fun factor over earnings when it comes to future GameFi projects