NFTs combined with virtual reality are revolutionizing the way games are played. Play-to-Earn models use smart contracts to give gaming participants ownership of digital assets. There are two main methods of obtaining liquidity in decentralized gaming.
The integration of NFTs with virtual reality is transforming the gaming experience. You may have heard of the Metaverse, where games like Minecraft allow you to purchase virtual land using non-fungible tokens. These tokens can be earned as in-game rewards or purchased and used to dominate virtual civilizations and gain power.
CryptoKitties led the way in decentralized NFT gaming. However, the platform’s popularity caused Ethereum to experience downtime after its launch.
What is the Play-to-Earn Business Model?
The Play-to-Earn model operates on smart contracts to give gaming participants ownership of digital assets. These in-game assets are awarded based on predetermined conditions. Ideally, as more players join the game, the value of these assets increases. Typically, these assets or rewards are tied to non-fungible tokens, which players can exchange for dollars on decentralized exchanges.
NFT Liquidity in Gaming
There are two main ways to obtain liquidity in decentralized gaming, both facilitated by NFTs.
Buying and Selling Non-Fungible Tokens: Gamers can create, buy, and sell NFTs through the Play-to-Earn model. For example, in Axie Infinity, players can breed magical creatures called Axies and use them to battle other players. Each Axie is unique, and ownership is tracked through the blockchain. Players can breed and sell Axies at a higher price, creating an open economy for decentralized gaming. The player’s marketplace also hosts NFT collectibles such as power boosts, cosmetic items, and weapons.
In-Game Rewards: Games like Mbox, which recently launched on Binance LaunchPool, use a free-to-play model to reward players with cryptocurrencies. Players can also stake their cryptocurrencies in the liquidity pool to earn additional rewards.
The resulting open economy makes gaming more rewarding and financially beneficial for enthusiastic players. In the future, the popularity of these games is expected to skyrocket and drive up the price of NFTs. You can trade or hold the earned tokens on cryptocurrency exchanges like Coinbase or Binance to earn more from these assets.
Axie Infinity Token AXS Surged by 1000 Percent Between May and September 2021
For instance, Axie Infinity, a game running on the Ethereum network and inspired by Pokemon, saw its token AXS initially sell for $4.20 in May 2021. By mid-August, the price had surged by approximately 120 percent to the range of $13-$15. By the start of September 2021, it had skyrocketed to an astonishing $90. The chart below from Tradingview illustrates this bullish trend on the AXS/USD price action.
[Insert AXS/USD Chart from Tradingview]
This record gain of 1000 percent within a month and a half demonstrates the potential for trading in-game tokens like AXS and MOBOX’s MOMO NFT.
Polygon’s Investment in Decentral Games
Another notable example is Polygon’s investment in the native token of Decentral Games, $DG. This move is expected to significantly increase the price of $DG.
The bullish trend on the AXS/USD price action posted a remarkable 1000 percent gain within a month and a half. This illustrates the potential for trading in-game tokens like AXS and MOBOX’s MOMO NFT.
Another example is Polygon’s investment in Decentraland’s native token, $DG. This investment is certain to drive up the price of $DG.