Why Gaming Tokens could lead the Next Crypto Bull Run
Gaming is one of the most common ways that people relax and socialize. Gaming is not restricted to any particular age, though statistics have shown that video gaming is mostly played by people between the ages of 18 and 34. Another report has shown that gaming is quite rampant among Gen Z, Millennials, and Gen X. More interesting facts about gaming show that around 3 billion people play games globally, while most game sales take place in the digital world.
What is even more interesting is that the gaming industry might be set for greater milestones. Gaming tokens could lead the next crypto bull market. I encourage you to read this piece to the end in order to discover the reasons why gaming tokens could be at the forefront of the next crypto bull run.
Gaming is already big
This point has already been established. About three billion people worldwide currently engage in gaming. The global video gaming industry is already valued at $300 billion in 2022. Having already established that most game sales take place in the form of in-game purchases, the global gaming landscape already has all the ingredients it needs to continue its growth.
Another key feature that makes gaming appealing to most people is the level of immersion that they derive from playing games. This immersion is derived as players continue to engage in high-octane gameplay. Players get immersed in the gaming environment for a brief period of time as they lead their avatars, accomplish tasks, complete missions, and receive rewards.
Researchers have also attributed mental health benefits to gaming. Gaming has been proven to relieve psychological experiences and aid recovery for people with post-traumatic stress disorder (PTSD).
Introduction of Non-Fungible Tokens
The introduction of non-fungible tokens to gaming has further changed the gaming landscape. It is one of the reasons why gaming could lead the next crypto bull market. At present, global brands such as Nike, Pepsi, Lamborghini, Adidas, and the like have already ventured into NFT. Tech companies such as Apple and Meta have also made a foray into NFT in recent times.
The introduction of NFT to gaming has created a new incentive for existing players. It could also be a major driving force for new players to join the ecosystem. NFT gaming enables players to lay claim to in-game assets. Assets such as avatars, skins, weapons, virtual land, and the like can now be bought and sold on dedicated marketplaces.
This has opened up a new form of economy in the form of “play to earn.” Essentially, gaming has shifted from a “tool for relaxation” to a “potential source of passive income.” If most game sales take place in the digital world, then the introduction of NFT is set to further increase the value of in-game marketplaces.
Now, I’m creating a mental picture of 3 billion people who are buying and selling in-game assets in the form of NFTs. The potential NFT gaming market could be set to explode in the near future.
Activities of Venture Capital Firms
If you are familiar with the way venture capital firms function, you will definitely know that they do their due diligence before investing in any project. VC firms are known to be meticulous with industry research. Most times, they spot market opportunities before others.
Venture Capital firms have been pumping a lot of funds into the blockchain gaming space recently. Despite the ongoing crypto market downturn, a report from Cointelegraph shows that the 10 most active crypto VCs have invested $1.3 billion into blockchain games and metaverse projects in Q3 2022 alone. Another report from Blockwork shows that VCs awarded over $500 million in funding to crypto projects in September 2022. More than half of these funds went into blockchain gaming and the metaverse.
Based on precedents and reputations, one needs to look closely into a sector that VCs are actively pumping funds into. They could be seeing what others have yet to see.
Final Words
Gaming is an activity that cuts across age groups. This is already a plus in terms of global adoption. The introduction of NFTs and “play to earn” will further drive gaming adoption globally. The activities of VC firms could then be the final indication that blockchain gaming is set for a meteoric rise in the next crypto bull market. Now could be the time to buy a handful of promising gaming tokens.
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