Is Crypto Volatility a roadblock for Blockchain Gaming?
Disclaimer: This article is intended for US audiences.
Blockchain gaming is an underrated area of the crypto economy, but it accounts for a significant portion of the overall engagement within the crypto industry. Even with the crypto industry’s volatility, blockchain gaming remains stable and continuously grows.
Blockchain gaming is a multi-billion dollar industry and one of the fastest-growing crypto sectors for investors.
In good times, games have become popular over the years primarily because of the remarkable profits they can generate for gamers and in-game cryptocurrency holders. In a sector full of innovation, the industry is regularly updated with new and fascinating titles.
However, given that these games, or more specifically their native tokens, are plagued by great volatility, one wonders whether the blockchain gaming industry can truly thrive in an unstable environment.
Crypto Market Volatility and Blockchain Games
Although the volatility of the crypto market has a significant impact on the blockchain gaming sector, a lot of capital is still flowing into the industry while the rest of the crypto market is struggling and experiencing falling asset prices.
According to a gaming report by DappRadar and BGA Games, the blockchain gaming industry accounted for a solid 41% of all engagement in the crypto industry, with a daily unique active wallets (dUAW) count of 712,611 in the sector.
In comparison, during the same period, 30% of total crypto engagement was in decentralized finance (DeFi), 15% in social blockchain platforms, and 4% in NFTs, which have struggled over the past year.
Crypto and blockchain are often associated with each other. However, the two are not as closely related as one might initially assume.
While combining the two terms may seem simple, it is better to compare it to the connection between technology stocks traded on the London Stock Exchange and the business activities of tech companies. While there is a correlation, it is not exactly what you would expect.
While the rest of the crypto industry, including startups, is struggling for funding, investors’ money is confidently flowing into the blockchain gaming capital pool.
In July 2023, the blockchain gaming industry received a significant amount of investment of $297 million, 63% of which was aimed at building the infrastructure to support game development.
This shows that the industry is just getting started, and investors are betting on tools and platforms that will enable future crypto and NFT-driven games.
Emergence of Crypto-Based Casino Platforms
As blockchain gaming continues to grow, players are exploring new ways to interact with their favorite games, and the integration of cryptocurrencies is a significant development. One notable platform in this space is LuckyBlock, which enables players to enjoy online casino games using various cryptocurrencies.
LuckyBlock offers a wide range of games, from slots to table games, all accessible via crypto transactions. This innovation addresses the needs of crypto enthusiasts who prefer using their digital assets rather than traditional currencies. Despite the volatility inherent in the crypto market, platforms like LuckyBlock provide a stable and engaging gaming experience by leveraging the benefits of blockchain technology.
The use of cryptocurrencies in online casinos can offer numerous advantages, including enhanced security, faster transactions, and greater privacy. As blockchain technology evolves, platforms like LuckyBlock are at the forefront of integrating crypto with gaming, ensuring that players have access to cutting-edge features and a seamless gaming experience.
With blockchain gaming and crypto casinos like LuckyBlock on the rise, the future looks promising for this intersection of technology and entertainment, even amidst the challenges of crypto volatility.
Conclusion
Blockchain gaming is still in its infancy, and yet the global blockchain gaming market is estimated to reach $4.83 billion by 2022. According to some analysts, this figure will increase at a compound annual growth rate (CAGR) of 68.3% between 2023 and 2030.
When it comes to blockchain, it is safe to say that it has not yet exhausted all platforms. After all, it has only started to gain traction on the Bitcoin blockchain.
Most blockchain games have been focused on the Ethereum blockchain for many years, with the Binance Smart Chain now hosting the most games, holding 38% of the 3,629 games (as of March 2023).
The Bitcoin blockchain was new territory for gaming, mainly because there was no technology that could be used to develop games on the blockchain.
However, since the launch of Ordinals, Bitcoin’s version of NFTs, gaming on the platform has been on the back burner.
With the development of recursive ordinals that can map large amounts of content to satoshis in Bitcoin, even an entire game, the gaming community has become even closer. While immersive video gaming technology is still being worked on, gaming on the Bitcoin blockchain seems to be imminent.
ADVT.
This article is brought to you by Clickout Media.
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