How Blockchain Gaming Will Revive Interest in Crypto in 2023

For many, 2022 will remain one of the worst years in crypto history. However, while the crypto market is gasping for air and losing supporters, its struggle is not a mirror for the ongoing developments in blockchain and Web3 technologies. Moreover, the "crypto winter" has shifted from trading to a more considerable emphasis on infrastructure, spurring new and promising projects.

Blockchain gaming is an emerging sector that has grown silently in the background while the rest strive to keep it together. However, this industry has seen an increase of nearly 1 million unique active wallets per month in 2022, according to DappRadar. This means that the crypto gaming sector is weathering it with flying colors instead of waiting for the winter to pass.

But there's even more to its resilience. This article discusses the impact of blockchain, crypto, and Web3 technologies on traditional gaming and entertainment during an abrupt paradigmatic shift.

What Is Blockchain Gaming?

The virtual world of gaming is not a new concept. However, blockchain technology has spurred new and exciting games weaving real-world economics with entertaining gameplay. For example, gamers can now earn more than just open records or a place on the scoreboard. Besides the prestige, they can win digital assets, such as non-fungible tokens (NFTs) and cryptocurrency. Next, they can sell or convert those for fiat currency and have something palpable to show for their in-game performance.

Crypto gaming appeared in the mid-2010s and slowly developed into today's market. This market continues to grow even in desperate economic times. The lowest investment period ranked at "only" $156 million in September 2022, according to DappRadar.

Moreover, the industry expands, incorporating new and versatile business models. Undoubtedly, the most popular one is play-to-earn (P2E), a concept through which players earn various tokens simply by playing a game. This sector grows substantially by the day as more people seek a way to make a passive income through entertaining gameplay. In return, the developer profits by selling in-game tokens to players.

Other crypto games earn their due via advertising or selling in-game items. For example, traditional video games reward players with advanced weapons, skins, or abilities. However, in blockchain gaming, players can buy, sell, or trade them with crypto, thus enhancing the overall value of the game.

Some blockchain-based games sell land in a virtually limitless Metaverse. Players can use those plots to build, host, and rent applications. This model enables individuals and businesses to transfer their economic endeavors to the emerging Metaverse and access new customers.

Lastly, some crypto gaming platforms use traditional distractions, such as casino games and sporting events, to incentivize and reward active players.

Blockchain Gaming Ready to Surge in 2023

The crypto gaming industry used the last couple of years to build its infrastructure, develop business models, and attract a global audience. In 2023, we should see developers diving deeper into the application-building layer and enhancing blockchain gaming.

For instance, players could get more out of their daily playtime. Also, gaming platforms can increase their offerings while providing better support in a safer environment. But, above all, it means blowing the doors wide open to welcome more people worldwide.

Traditional Web2 gaming lacks the innovation and technology to keep up with the emerging Web3 gaming applications. Web2 still dominates the global market, and the skins industry alone commands over $50 billion. However, players don't own the assets outside the games, regardless of how many hours they spend playing.

Blockchain-based Web3 gaming allows players to trade or sell most of the in-game items they earn or purchase. It will enable them to generate real value going into their wallets even after they stop playing. In this regard, crypto gaming can overtake Web2 in the next decade, starting valiantly with 2023.

The eSports market is expected to reach $5.48 billion by 2029, according to Statista. This is partly due to the advances made in blockchain gaming in recent years and the ones projected for the next ones. However, this is not the only sector forecasted to thrive. Most crypto gaming models should step up to the plate, including P2E, NFT-based, and games of chance.

New Trends in Crypto Gaming

2023 will see the further development of all the recent trends in blockchain-based gaming. The industry has branched its evolution on different avenues in recent years, including P2E, the Metaverse, and GameFi. Furthermore, this could be the year when they all reach mainstream adoption.

Play-to-Earn games are evolving rapidly to the increasing popularity of non-fungible tokens (NFTs). These games reward players for their in-game performance with various digital assets. Next, gamers can collect, sell, or trade these NFTs for money. In other words, P2E transforms video gaming from pay-to-play entertainment into a fun and engaging way to generate income.

The Metaverse adoption slowed in 2022, following an impetuous rise to fame in the previous two years. Nevertheless, many industry experts see 2023 as its comeback year. The continuous development of virtual reality (VR) and complementary VR headsets could trigger a renewed interest in the Metaverse. Moreover, many corporations see this medium as the future of marketing and advertising space.

GameFi represents a broader sector of blockchain-based games combining traditional gaming with decentralized finance. After several years of development, in 2023, developers may be looking towards creating better quality games with increased long-term sustainability.

Oleg T. from Vave believes this is only the dawn of a new gaming age: "We are witnessing the most exciting period in the industry's history. Video games as we know them are becoming a global phenomenon with unprecedented earning opportunities for everyone involved, especially for the players."

Final Thoughts

Gaming is going through an irreversible revolution, changing how we play and attracting larger and more diverse demographics. Thanks to blockchain, crypto, and Web3, playing a game can be more than a pastime. It can be a way to earn a passive income, generate value, and engage with players worldwide in virtual worlds.

The world of decentralized gaming applications has massive potential and can expand past its borders, offering exciting new opportunities to other industries. Moreover, it can help revive interest in crypto as more players join the game utilizing digital assets.

As we look ahead to 2023, blockchain-based gaming seems a likely candidate to encourage mainstream adoption and pave the way for a Web3-dominated world.