Once it was clear that cryptocurrencies were not the only use case of blockchain, many new projects in diverse sectors started popping up. One of such sectors is gaming. A blockchain game, Splinterlands has surpassed other dApps to become the #1 decentralized application.
Gaming has seen a lot of growth in the last five decades. Atari launched Pong in 1972. Microsoft Xbox Live online gaming platform was launched in 2001 with a monthly subscription fee. Online multiplayer World of Warcraft, as of April 2021, had over 22 million registered accounts, making it the most popular game in the world.
According to Tech Jury: “Between 2017-2018, the gaming industry had a 13.3% compound annual growth rate to reach $137.9 billion. However, video games industry stats show that the industry hit the $152.1 billion mark in 2019, showing a CAGR of 9.6% from the previous year.” It is fascinating to think about the potential scale of the blockchain game market. The overall game market was $175 billion in 2020 and is predicted to rise to 218 billion Dollars in 2023. (depicted in the graphic below). Newzoo also projects that 77% of spending on in-game items will be spent in 2023 or $168 billion.
The Rise Of Blockchain Gaming
As the pandemic shut down various economies in 2020, the video gaming industry has been one of the only sectors that has undergone an unanticipated surge. With several nations adopting national lockdowns, people instinctively sought pleasure at home.
Several big game makers, like Activision Blizzard, Epic Games and Electronic Arts, reported significant sales revenue and an active user base in 2020. Increased in-game buying also reflected the growth in active users.
In a research report published by the Worldwide Asset Exchange, over 75% of gamers wanted a currency which was usable throughout different platforms to exchange their virtual assets. Crypto games have increased in popularity due to its capacity to allow players to accumulate and exchange virtual assets that can be traded worldwide. It has also demonstrated that the gaming sector earns money in a safe and straightforward way.
Blockchain-based gaming is being adopted at a rapid rate, fresh research reveals, even as the popularity for other applications such as non-gaming tokens and decentralized finance (DeFi) show signs of wear.
Polygon seems to be the blockchain of choice. According to Venturebeat, “more than 60% of today’s NFT and blockchain-based web 3.0 games, including Decentraland, Sandbox, Somnium Space and Decentral Games have chosen Polygon’s Proof of Stake blockchain as the preferred scaling solution.”
According to the most recent Blockchain Game Report from the Blockchain Game Alliance (BGA), over 804,000 unique active players connected to blockchain-based games in July. The trend shows that the new industry is in the middle of speculation, which causes upward volatility, and that the gaming sector is rapidly increasing its network of users.
Splinterlands surpassed 375,000 daily active users, giving it almost 25x as many daily users as NBA Topshot. Going by dappradar’s data, Splinterlands is the most played blockchain game worldwide.
Blockchain Gaming And Splinterlands
Blockchain eliminates many of the gaming industry’s legacy challenges. Technology like non-fungible tokens enables users to own their in-game assets, and reduces account theft issues. You might even port them between several games, creating new value channels for the industry. Decentralization might help to regain control for smaller developers from the few major space-dominating game studios.
Since this development and the potential it offers the gaming industry, many developers have turned to blockchain games. A blockchain-powered Axie infinity dominated the blockchain games sector. In July, Axie Infinity made $600 million in trading volume, making it the most valuable collection of NFTs. Axie Infinity, launched by Vietnamese developer Sky Mavis in 2018, is a game that was inspired by Pokemon, which is a popular video game. Based on Google Trends, Axie Infinity’s online search was twice the enormously popular “Call of Duty” franchise of Activision.
Splinterlands sudden popularity is not surprising. The value the game offers the players is what makes blockchain games attractive to the average gamer. Splinterlands is a digital card game that allows players to buy and use cards to collect, trade and battle others around the world.The game is built on the Hive blockchain. It includes blockchain games that allow players to purchase cards. Splinterlands has developed its digital cards using NFT technology, as opposed to traditional card games. This leads to actual value cards and collectible potential that can gather value in line with rareness and demand on the market.
Apart from Splinterland’s popularity, its rise to become the most used dApp also shows how large the gaming industry is. Many people would rather play games that offer them real and organic value than exchange their cryptocurrencies on platforms like Pancakeswap.
Conclusion
Blockchain technology is revolutionising the gaming business, particularly in terms of asset monetization. Just as with the art world, NFTs allow fans who are excited about them to purchase in-game assets and features and to promote a relationship between them and the creators of the games.
A game like Splinterlands is a part of that revolution in the gaming sector. Crypto Gaming improves the entire experience for players and offers new income streams because of the opportunity to easily exchange assets, the ability to play anywhere and the increased level of safety and security.