With the arrival of the Metaverse in 2021, NFTs gain real value
Non Fungible tokens will be one of the most significant developments in the crypto-verse in 2021. In 2022, the Metaverse plans to push its usefulness even further.
The popularity of NFTs has soared to new heights, with widespread support from both the crypto community and the general public. Non Fungible Tokens (NFTs), which were formerly regarded to be a fad, are now spreading throughout the crypto-verse.
According to DappRadar, the NFT market had its biggest year ever, earning over $23 billion in revenue, with the total market capitalization of the top 100 NFT collections standing at $16.7 billion as of Dec. 17, even before the year ended.
The most significant development for NFTs and the metaverse has been Facebook’s statement on Oct. 28 that it will be renamed to Meta in order to broaden its influence beyond social media and into the Metaverse. In fact, it was discovered in the last week of October that over $106 million worth of Metaverse land had been sold in just seven days.
The NFT collectibles craze originated in the crypto-verse in 2017 with the release of the CryptoKitties game and the resulting desire for these digital cats. In November 2017, the blockchain game had a peak of 140,000 daily users and 180,000 daily transactions, however, this traction was soon lost over the course of a few months. Since then, prominent collections such as CryptoPunks, Bored Apes Yacht Club, and NBA Top Shots have emerged in the collectibles realm.
The digitalization and tokenization of artworks by renowned painters like Beeple through auction sales held by established art galleries like Christie’s and Sotheby’s sparked initial interest in NFTs among the mainstream.
GameFi is the game-changer
GameFi protocols are a major turning point for NFTs who have been following the Metaverse story. GameFi is touted as a unified ecosystem that combines gaming with decentralized finance (Defi). GameFi, according to Huobi Research, the bitcoin exchange’s research arm, has reignited interest in blockchain gaming.
Axie Infinity, a gaming environment where players may gather Axis as pets and combat, breed, grow, and establish kingdoms for their pets, was the leading protocol in this respect in 2021. The native tokens of the ecosystem, AXS, and SLP, fuel the game ecosystem.
Sky Mavis, a Vietnamese game developer, developed the Ethereum-based game, which was published in March 2018. The Axie Infinity collection has swiftly climbed to become the most traded NFT collection in the brief history of NFTs, thanks to the enthusiasm that surrounds the game this year. In total, over $4 billion has been spent on the collection. With its current in-game trade volume, Axie Infinity has far outpaced rival blockchain games.
The game’s daily active players increased from 20,000 in March to 2.5 million in December, a 125x rise in less than nine months — an incredible achievement for a game that only acquired popularity this year. In June, the game earned $9.72 million in a single day, breaking a record set by Tencent at the time. The game contributed 19.5 percent of overall NFT trading volume in the third quarter of 2021, totaling $2.08 billion in trading volumes.
While this game is built on the Ethereum blockchain, blockchain-based games have moved to other blockchain networks like Solana and the Binance Smart Chain. Splinterlands on Hive and Wax, Alien Worlds on Wax, Upland on EOS, and MOBOX based on the Binance Smart Chain are just a few of the games that have garnered popularity across blockchain networks.
In 2021, the amount of money invested in the blockchain gaming sector will have topped a billion dollars, led by the $930 million raised by Forte Labs, a gaming business.