By Hannah Parker
A non-fungible token (NFT) is a distinct digital identification used to verify ownership and authenticity and is maintained in a blockchain. It cannot be copied, swapped, or divided. These tokens resemble cryptocurrencies and have extra features that distinguish them from other virtual goods.
After the initial frenzy that followed their surge in popularity, NFTs have plummeted. Many NFTs saw a dramatic decline in value, which led some people to wonder about their long-term viability.
As Web3 technology rapidly develops, nonfungible tokens capture mainstream audiences worldwide.
For the past few years, nonfungible tokens (NFTs) have been an integral part of the cryptocurrency industry. However, they have spread far into the public consciousness due to their value and utility across many industries, according to experts from Bitcode Method official.
High Demand for NFTs
Jackson DuMont, the director of video production at Cointelegraph, digs into the details of NFTs and emphasises how crucial the blockchain technology at its core is to establishing ownership of digitally rare assets: “NFTs provide unique, verifiable and immutable proof of ownership of digital goods. True digital ownership of assets through NFTs is a revolutionary idea transforming how we interact with the internet.”
NFTs come in many forms, ranging from the best NBA highlights to exclusive works of art by some of the most skilled artists in the world. The technology is also being utilised to find solutions to problems in real-world use cases, such as ticketing.
The NFT trading volume increased to $2.71 billion in Q3, a 67% decrease from Q2 in 2022. But the number of sales has increased from Q2 by 8.3%. The most recent DappRadar Industry Report made a note of this.
Compared to August 2021, the NFT trading volume increased by 10.4% in September alone. Additionally, the sales count climbed by 21%, demonstrating the continued high demand for the NFT industry. On the other hand, the reduction in the value of the cryptocurrency market may have contributed to the overall decline in trading volume.
The data also showed that, although the volume of NFT trades on Ethereum climbed by 11%, it fell by 76% since Q2. Although it has increased 96% over the past month, Solana’s NFT trading volume is still down 63% from Q2.
The introduction of the Y00ts collection, which gave Ethereum NFTs a run for their money, fueled the latter development. A month after the introduction, it outperformed the NFT major OpenC volume charts and brought in 435,000 SOLs, or almost $15 million in secondary sales. Renga is a different collection that has dominated the NFT market in addition to Y00ts.
During the bear market, the industry experienced severe stagnation, but blue chips like Yuga Labs, Cryptopunks, Mutant Ape Yacht Club, and Bored Ape Yacht Club have continued to lead. More than 46.21% of the total NFT market capitalisation comprises these four projects.
Financial Advantages of GameFi
An online video game that utilises blockchain technologies, such as cryptocurrencies and non-fungible tokens, is referred to as a blockchain game (also known as an NFT game or a crypto game).
The term “GameFi” stands for the commercialisation of video games. It mainly refers to blockchain games that offer tokenised incentives to players while enabling frameworks for player-as-owner instead of the traditional player-as-consumer. It is distinguished by its “play-to-earn” (P2E) business model. Essentially, Blockchain games that offer financial rewards to players for their time and effort are powered by GameFi.
Blockchain-based games have primarily been unaffected and have continued to be profitable. Unique address wallets for the week climbed by 8% to 912 000 from August, indicating a rising trend. As per DappRadar, “this is an optimistic indication for blockchain games since many have hypothesised that if game apps cease to be financially advantageous for the ordinary user, they will lose most of their player base. It was shown to be false.”
Regarding profitability in Blockchain gaming, NFTs are occasionally given to participants as a prize for participating in the game and winning. Players can also buy them on various NFT marketplaces, though. Players that possess NFTs have the option to sell them and generate money, regardless of how they obtained them. One of the simplest methods to make money playing blockchain games is through this avenue.
Like any other NFT, virtual objects that players can earn or buy in-game, such as skins, weapons, characters, in-game money, and even virtual land on the metaverse, can be bought or sold for profit.
Gamers can accumulate more assets, and become more valuable as more people participate. The thrilling aspect is that players can move, buy, or sell these in-game assets outside of the game’s virtual environment in return for Bitcoin or real money according to their conditions because of the games’ decentralised structure.
A potent fusion of blockchain technology and video games is GameFi. Players who put time and effort into these “play to earn” games are rewarded with tradeable tokens. Most Web 3 games create their metaverse for players to assemble, have fun, interact with one another, participate in content, and so forth. Today, the business draws more than 800,000 players every day. Due to the variety of advantages it offers, many people are attracted to GameFi. The simplicity of dealing with digital assets is one of them. GameFi 2.0 and Web3 gaming developments will have an impact on the metaverse in the coming future.