According to Nansen report GameFi, a sector related to the use of blockchain in the development of games, is also expected to grow rapidly and a compound annual growth rate of the market of over $301 billion is anticipated in 2030. This projection, as described in the report by blockchain analytics firm Nansen, shows that full decentralized ownership of one’s assets within a game and real-world incentives are currently redefining the gaming industry.
The report links this explosive growth to decentralization, specifically, decentralized gaming as a factor. Gaming as a real economic activity where players actually own assets such as tokens or NFTs is the future of GameFi. According to Nansen report, GameFi will expand at an incredible rate of 68% annually in the following six years.
Decentralized Ownership of Assets Fuels Growth
The sector of GameFi is able to provide actual possession of in-game assets through blockchain technology, which is unattainable in traditional gaming platforms. Thus, as Nansen report pointed out, “The idea of the token as the genuine ownership of assets is a primary booster for the GameFi market.”
It also decentralizes rewards in the form of tradeable valuable assets that can be monetized. As is evidenced by traditional games, the flexibility and derivative possibilities of player advancement are usually restricted by the outlined framework within which the game operates. However, GameFi reverses that model, as players can bring their accomplishments to other platforms or even sell them for fiat money.
Of all the types of games, role-playing games (RPGs) have been the most successful in this decentralized model. Such games enable users to make C2C deals of unique in-game assets such as NFTs, making 22% of all Web3 games, making RPGs the most widespread genre in GameFi.
This, Nansen report suggests that blockchain-based RPGs are sustainable due to player-owned economies. Assets on these games can be bought, sold and traded, therefore offering users full flexibility of the owning stake while incorporating actual value to gaming activities.
Blockchain Networks Fuel Scalability and Engagement
Besides the decentralized ownership structure, this report addresses the importance of having enhanced blockchain technologies in determining GameFi’s growth path. Popular blockchain platforms like opBNB, Ronin, and Immutable exist because of their ability to work efficiently, handle large loads, and stay affordable. This growth is due to efficient solutions getting more attention from developers and players, making the game world stronger.
These networks help try to solve some of the largest issues that blockchain based gaming has to deal with, such as transaction throughput and gas fees. The optimizations are enabling GameFi projects to scale up while achieving higher levels of user engagement by offering seamless user experiences.
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This is according to a recent Nansen report that highlights the fact that while there has been a level of fluctuation across the different cryptocurrencies and tokens, the world of GameFi has remained rather stable. Monthly active wallets, also referring to the sector’s overall growth, grew in August 2024 by 8.94%, and proves the popularity of blockchain gaming. “The growing number of daily active wallets proves once again that the sector remains vibrant even during a difficult period in the crypto market,” the report said.
The aspect of GameFi is also attracting this mainly due to financial incentives. Axie Infinity is a good example of the ‘play-to-earn’ model that permits customers to earn tokens intently. The real-world rewards model has proved successful and made room for other projects similar to Illuvium and Seraph were introduced as more incentives towards game playing.
Social Engagement Boosts GameFi’s Appeal
Aside from emerging technologies utilized in the gaming environment such as blockchain, Nansen report indicates that community is key to GameFi. X – the now ex-Twitter successor, Discord, and Telegram are essential in building dedicated player communities that are essential in the success of blockchain games. Some of the most successful projects on this front have been Axie Infinity, Illuvium and Seraph especially in cultivating an active audience. Such games that make use of high-quality gaming experiences as well as decentralized economics, attract players for not only fun and entertainment but also actual earning of rewards.
The report also underlines that audiences of these games attribute much of their success to effective community management and emphasizes that the tools such as Discord are crucial for keeping players engaged and working together. One of the key benefits of GameFi in terms of preserving the interest of an audience is this community aspect of the site.
‘Axie Infinity and Seraph have created the benchmark for community involvement,’ it said. “The fact that they are able to sustain large and active communities is part of the reason for the high growth rate.”
Nansen Report: A billion-dollar opportunity could be on the horizon
Increased decentralization of ownership, the constant enhancement of the underlying blockchain technology, coupled with high levels of community involvement make GameFi’s future appear promising. According to Nansen report, by 2030, the market cap is expected to reach $301 billion, which gives the growth of this sector, popular with developers, investors, and players.
While it seems that the trend for GameFi is gradually peaking, the practice of non-gaming rewards and extremely entertaining gameplay will continue to attract more and more users. In this case, anyone who wants to bet on the future of gaming should look forward to the blockchain gaming industry as it prides itself as the leading company in the digital economy.
Nansen report leaves little doubt: GameFi is still in its early stage of grew and has the potential to become one of the highest valued and highly impactful industry of global economy with a compound annual growth rate of 68%. Keep following TheBITJournal and keep an eye on lastest insights of Nansen report.
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