That’s why many in the industry are betting that GameFi is DeFi’s future

GameFi is launched as a one-stop hub for blockchain gamers and investors. Many in the gaming industry put the game finance ecosystem on a par with DeFi.

Kieran Warwick, co-founder of the Illuvium gaming platform, has explain How GameFi agrees with DeFi in a recent podcast. He says the market for DeFi is limited to a few. Opposite:

“GameFi is a market that can appeal to 3 billion people.”

Almost half the world plays games because a lot of people leave DeFi because it’s too “complicated”. Additionally, Warwick believes there is an opportunity with companies like Axie Infinity to get people into the crypto space. In connection with new investors, he said:

“I think it’s about bringing them in … and without realizing it, they’ll start accepting crypto.”

Therefore, he predicts that the gaming ecosystem will win in the short term with more participation in the indie game segment (indie games). However, DeFi will take over for a long time. In this context, Yield Guild’s Gabby Dizon also believes DeFi and GameFi go hand in hand. “DeFi is financial gamification, GameFi is game financing.”

He added that combining the two would result in play-to-earn and metaverse, where people own assets from different gaming experiences. Some predictions put the market capitalization of the Metaverse universe at around $ 300 billion by 2025.

Acceptance and community

Some people like Loot Squad’s Bryce Johnson suppose i think DeFi will rely on games to “provide long-term sustainability”. This essentially means that for many people, gambling can be a starting point before their first banking experience.

The gaming industry is gaining traction estimate There are around 41.9 million players who own cryptocurrencies. In terms of revenue, the crypto game industry is expected to have a market revenue of $ 321 million as of 2020. A recent report predicts that the global game market will be valued at around $ 178 billion in 2021.

On the other hand, the DeFi space is now a nearly $ 95 billion industry. However, estimate DeFi’s growth is exponential, with an estimated $ 1 trillion in the next year.

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Institutional investors meanwhile have a growing demand for cryptocurrencies, especially in the DeFi segment. In general, blockchain companies are drawing the most funds from venture capital, according to data from 2021 Block data.

In terms of games, Axie Infinity raised $ 152 million in funding this month. Huobi Ventures had previously set up a $ 10 million fund for GameFi projects.

Timetable

Johnson predicts that while there will be a number of new companies entering the gaming space in the near future, there will be no winners or losers. However, that could change in 20 years with the arrival of some blue chip companies. But according to Dizon, the future will be in the form of metaverse.

Overall, industry insiders also seem optimistic about Axie’s future. In addition, the emergence of new players such as Microsoft Xbox, Twitch, G2A, and other NFT markets is increasing competition. While companies like Axie Infinity, Gods Unchained, and CropBytes have grown in strength in this space.

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