Decoding the Metaverse: GameFi+NFT — AEX Digital Finance Institute
Frank’s view — AEX Digital Finance
Jay Chou (one of the best-selling artists in China) buys NFT which is named Phanata Bear, with the price of Phanata Bear keeps decreasing. All NFTs in the Chinese celebrity bandwagon have inevitably fallen into decline. Compared to the highest point, the average price of Phanta Bear NFT has shrunk by more than half. The volume is less than 1/10 of the high point.
The point is this trend once opened will be irreversible. With the weakening of all kinds of band effects, NFT will gradually return to the essence of classification, facing the test of true value, can not stand the test of NFT, will eventually become the JPG.
Types of NFTs
NFT can be divided into several categories according to their audiences and uses:
1. Avatar category is meaningless and used to show off identity and distinguish community tags. Taking the luxury route, needing the celebrity effect, needing to take the route of high-end brands and elite communities.
2. Art category is the initial landing of NFT. To facilitate art collection, using blockchain technology to save many high-quality online paintings or electronic versions of physical artworks. Moreover, it is heavier on storage and easier to confirm the right.
3. IP category, such as Ghozali every day, MekaVerse, X Rabbits Club, and another specific crowd favorite top IP, such copyright effect and familiar IP effect is always one of the collection values of NFT.
4. Application category is the easiest direction for NFT to realize the landing and expansion. The application here includes the wallet belonging to the future web3.0 era, game props, and equipment, etc. It is easier to match the value of the entity and can bring more imagination to the future crypto world.
Before formally discussing “why GameFi needs NFT”, let’s first understand what economic position the game industry currently occupies in society? And how did the game industry work before NFT was used on a large scale?
Online games industry can now be called one of the pillars of Internet applications, and games occupy the majority of time used by Internet users worldwide. The development of online games determines the modernization process of a country’s Internet industry and the development of capitalist economic processes. Because the hardware facilities of the network, software technology and the innovative power of Internet technology are the hard power mentioned in the current environment, in the era when technology companies lead the world innovation development. The development of the Internet has also been inseparable from the drive of the lucrative benefits generated by the online game industry. Whether it is the concept of meta-universe, VR/AR type of hardware facilities that capitalize hype, the game is one of the most important landing applications.
According to the data compiled and released by Footprint Analytics Industry Research Institute, the compound growth rate (CAGR, i.e., sustained growth rate over several years) of the global game market reached 13.4% between 2015 and 2020, the global game market size is expected to reach $196 billion in 2022.
Footprint Analytics — 2021 Monthly Total Number of GameFi Protocols
However, the participants of the current game market present an obvious binary structure — upstream producers and end consumers, and the two have an insurmountable gulf in the issue about the distribution of benefits. Upstream organizations including game developers, IP owners, channel publishers and so on occupy the absolute profits of the game industry, while users who really make traffic and monetary contributions to the game are in the state of being harvested for a long time, and even all the money of game equipment has to look at the face of GM. This unfair phenomenon is also an important problem that the current combination of GameFi and NFT has to solve first.
On the one hand, the game has gradually changed from a mere pastime and entertainment attribute to multiple attributes of both entertainment and social interaction. With the more three-dimensional and personalized game scenes brought by GameFi, virtual game characters are becoming an important part of people’s self-expression and individuality, and the uniqueness of NFT is expected to become an immediate need characteristic for players.
The information received by people is growing exponentially. In this case, attention is bound to become a scarce resource. When the concept of PLAY AND EARN dominates the global GameFi market, which game can bring unprecedented social and interpersonal experience and a unique sense of social presence. Then it can become the traffic entrance of NFT and GameFi and SocialFi in the future, and whoever can attract more attention will hold the right to speak in the metaverse world.
AEX Digital Finance Institute always believes that with the continuous improvement of economic model and game quality. In the near future, GameFi forms a positive cycle, and NFT has precipitated social value, will form a kind of positive upward spiral, bringing a brand-new breaking point for the whole blockchain industry and cryptocurrency market.
AEX Operation Team
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