The GameFi industry is at a tipping point, where the combination of entertainment and digital economy is redefining what it means to play.
The blockchain-based gaming market is booming, with projections indicating impressive growth. In a recent report by Nansen and Slice Analytics, the firm said that the GameFI sector is expected to reach a value of $301.500 billion by 2030, with a compound annual growth rate (CAGR) of 68% from 2024 to 2030.
This growth, according to the report, will be driven by the decentralized nature of blockchain technology, which allows players to have true ownership over in-game assets, through tokens and NFTs.
Nansen and Slice Analytics emphasized that this digital ownership over gaming assets sets GameFi apart from traditional gaming ecosystems, offering players a unique combination of entertainment and economic benefits that cannot be found on conventional gaming platforms.
The appeal of digital property drives growth of the GameFi sector
One of the most revolutionary aspects of blockchain-based gaming is the ability for players to own and trade digital assets. In traditional games, achievements and items earned by players remain locked within the game ecosystem. In contrast, GameFi allows players to truly own the items they have earned, adding tangible value to their gaming experiences.
According to reportRole-playing games, or “RPGs,” which account for 22% of all Web3 games, are particularly well-suited to this model due to their focus on character progression and in-game economies.
While RPG players spend hours building characters and earning rare items, in the traditional model those items have no value outside of the game. With GameFi, players can trade these items as NFT tokens, which increases engagement and motivation to progress in the game and is what has made RPGs the most popular within the Web3 gaming sector today.
AAA titles will dominate Web3
On the other hand, the report notes the growth of AAA games within the GameFi sector. Although currently only 1% of Web3 games are AAA titles, interest and investment in these types of games are on the rise, as they offer a much more striking quality and immersion for players, which had not been seen before in the blockchain gaming space.
The report also highlighted the importance of the structure of in-game economies for player interaction and engagement. For example, Axie Infinity operates on a dual-token model that includes the Smooth Love Potion (SLP) and Axie Infinity Shards (AXS), where the SLP token is earned through gameplay and can be traded on secondary markets, while the AXS token allows holders to participate in governance decisions about the future of the game.
“In successful Web3 games, the structure and mechanics of in-game economies are key drivers of player interaction and engagement”, the report said.
Illuvium is also focusing on a robust NFT marketplace, where players can trade rare assets, adding a collectible component to the Play-to-Earn model. Seraph, a loot-based game, uses a reward system that introduces randomness and allows players to earn high-value rewards regardless of their initial investment. Analysts at Nansen and Slice Analytics believe that this approach encourages consistent participation and keeps players engaged, and will therefore help boost the GameFi sector.
An engaged community: The heart of Web3 games
Community engagement is also seen as crucial for growth in Web3 games. Nansen and Slice Analytics indicated that player engagement on social networks such as X, Discord, and Telegram have demonstrated the importance and strength of communities in driving growth for gaming projects.
Through these social platforms, developers can share updates and keep players interested in their respective developments. Furthermore, a high number of followers for a project on these platforms is often indicative of a game’s ability to create an active and dedicated community, so this number of followers is taken as a critical factor in determining the long-term success of a blockchain game.
It's worth remembering that games like Axie Infinity, with over 860.000 followers on X and over half a million on Discord, is an example of an active community driving early adoption.
The firm's analysts stressed that the ability of projects to maintain active communication channels allows them to keep their players and community informed and engaged, which is essential for growth in the growing and competitive GameFi universe.
Other key factors for GameFi's success
In addition to the factors outlined above, the report believes that increasing technological innovation in the blockchain industry that facilitates the use and accessibility of these games, the creation of more sustainable economic models, the implementation of more attractive reward and incentive systems, and strategic collaborations with companies in the sector could ensure GameFi's success.
