The Economics of P2E (Play To Earn)
Play To Earn.
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General Conclusion
The NFT market is a rather modest field when its appeal is limited to simple gaming. You buy an item and expect it to be worth more in the future, but it lacks the interactivity between the player and the game.
2021 can be said to be a "Welcome to the World of Play To Earn" year because it has opened up a wave of NFT gaming trends with a lot of positive information surrounding it also created many record numbers in the crypto market.
Leading the way for deeper game interaction is the Axies project and following many other NFT projects participating in the "play2earn" game that has brought the entire Ethereum network to life. Since then, many new projects have begun to expand across other Chains to optimise costs and bring more interesting experiences.
What Is Play2Earn?
Concept
Play-To-Earn is a combination of two actions Play & Earn, which means both playing games and earning money. Gaming has been around since the 1970s, each phase has a face of innovation & in 2021, a unique combination of NFT and traditional gaming takes place, giving users (both crypto & non-crypto) a unique experience. new play to earn experience.
Play to Earn has been around for a long time, for many 8x, 9x generation gamers, the game Silk Road is a good example, you can transform into simulation characters, fight & raise account rank, buy and sell weapons, participate in hunting prizes, etc. If you can "plow" to become a terrible level, many powerful weapons can be sold to make money.
What Is Different About Play2Earn In Crypto 2021?
Thanks to blockchain technology and the advantages of the Crypto market, the Play to Earn model has now been improved, specifically:
Gaming operators have incorporated NFT in their protocol.
Improve ownership of in-game assets for users.
Players are creating value for other players and developers, in return they are rewarded with in-game assets (native tokens/NFTs).
Booming
NFT and Play to Earn are very hot topics in recent times and that is also one of the reasons why transactions on the Ethereum network have become active again.
Gas Used By Smart Contract
As you can see in the smart contracts on Ethereum that use the most Gas in the past 30 days, Top 1 and Top5 belong to Opensea- The largest NFT Marketplace platform on the market today, Top 4 belongs to Ronin Bridge by Axie Infinity.
Souce:
https://etherscan.io/gastracker
Specifically, for Opensea, which protocol currently maintains GAS consumption at $5-6M and shows no signs of cooling down.
Similar to Ronin Bridge of Axies, when the amount of GAS consumed also peaked and showed no sign of stopping.
Thus, with the continuous growth and no signs of stopping of NFT on Ethereum, Axie Infinity and OpenSea have made the network more active.
Trading Volume
In 2021, we have seen an increase in trading volumes on NFT Dapps, peaking at $86M in March. Currently, it is holding at $38-$39M for the last 3 months.
Source:
Axies Infinity ($AXS)
Sourve: https://axieinfinity.com/
With a play-to-earn model, Axie Infinity is a name that brings a new wave with successful development in the past time. This is a Crypto project conceived by Vietnamese team & launched in 2018. Axie Infinity is built on Loom Network - a Layer 2 scaling solution for Ethereum. Inspired by the popular game series Pokémon and CryptoKitties, players in Axie also need to do quests, battle, and exchange items with other users at the Marketplace.
Each Axie in the game can be purchased and owned as NFT (Non-fungible token), the player needs to raise them with $SLP (Small love potions). NFT & $SLP items are all exchangeable to $AXS and trade them for profit.
Game Axie Infinity is played not only for fun but also for money, these criteria have affected the majority of Filipinos. In particular, during the Covid 19 epidemic season, Axie's hotness spread even more. From the elderly to young children, everyone downloads & plays games to earn money, which has helped Filipinos have a great source of income in the most difficult time.
AXS is a utility token representing Axie Infinity that serves as an in-game reward & exchange item.
What Else Did You Miss?
Axies Infinity ($AXS)
Highlights
My DeFi Pet
Token Summary
Highlights
Alien Worlds
Token Summary
Highlights
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TLDR:
We can see that the Play-To-Earn trend is growing strongly, especially in the current market situation, both owning NFT (True Ownership) characters and valuable token rewards. , but can that happen in the long-term when the cash flow has already begun to "stagnate".
With the blockchain being widely recognised, it is possible that many large funds will start to participate in this game, the money may flow in the future & NFT Gaming projects are one of the most popular categories. The attraction and potential of Play To Earn projects are feasible, but not in the short term and depends on each project.
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