NFTs announced their presence in the crypto space in early 2021, and there has been no turning back. While these digital assets started as a way for people to own digital art and media freely, their use has spread far and landed at the center of the video gaming world.
For avid NFT gamers, NFT mobile games are the hallmark of fun-filled profit-making, and there is much to gain from them. But is this entirely the case, or are NFT games a passing wind that rages only to quiet down after a short while?
In this article, Chainplay and Apptica shared their experience and made predictions for you to take a deep dive into the NFT Mobile Games Market and determine whether an investment in the sector is in your best interest.
Read this article to find out:
- How many new play-to-earn mobile games were released in 2021 and 2022
- Is the NFT gaming niche profitable?
- NFT games in the future: will they die or survive?
- And how to find the best NFT gaming niche to invest in?
The Number of NFT Gaming Titles Has Hit the Roof Between 2021 and 2022
Before 2021, there was little talk of NFT games. Although NFT gaming titles like Crypto Kitties existed as early as 2017 and NFTs made up some of the cheapest cryptos to transfer, they didn't gain much traction. The NFT market was still in its infancy stage; hence, many people didn't understand its potential.
However, the creation and popularization of art NFT projects like Bored Ape Yacht Club in the first quarter of 2021 sparked the spread of the NFT fever that now dominates crypto gaming projects.
According to Chainplay Listings, there are at least 1487 NFT gaming projects, and this is a drop in the ocean. Considering the rise in the number of people embracing crypto gaming and Gaming Finance (GameFi), there is a higher likelihood that more of these games are in the pipeline.
Another strong indicator of the potential increase of NFT games in the market is that many AAA video game developers are finding new ways to make console games that incorporate aspects of NFT games like play-to-earn. Big players in the video game industry like Ubisoft have already incorporated NFTs into some of their titles, and the trend has a high chance of spreading.
How Much Profit Is NFT Games Making?
Besides giving gamers a chance to earn decent rewards for their gaming efforts, profit margins are the other reason behind the rapidly sprouting NFT mobile gaming projects. At least $1.3 billion was raked in from Axie Infinity, one of the most popular NFT gaming projects. The game hit its highest return on August 6, 2021, generating a whopping $17.5 million in 24 hours, and its success is not an isolated incident.
The major NFT gaming title, Decentraland, had an estimated value ranging from $800 million to $1.4 billion. After launching less than a year ago, other upcoming titles like Illuvium are worth $72 million.
Despite the cryptomarket's turbulence in 2022, these NFT games have remained afloat, and some even outperformed the records they set in 2021. Axie Infinity, for instance, is worth $1.5 billion, according to Coinmarketcap, a whole $200 million price increase, while Decentraland averages $1.7 billion, and Illuvium $79 million. Such upward trends in value indicate that the NFT mobile gaming market performance is getting more profitable by the day.
How Promising Is The Future For NFT Mobile Gaming?
The future of NFT mobile gaming may be shaky, but it is not bleak. While many factors threaten this industry, there are equally many factors encouraging its growth. NFT mobile gaming has great profit-generating potential in the future because of the rapid adoption of cryptocurrencies. The increasing numbers of crypto investors attract more people to the idea of earning crypto through gaming, making the industry's expansion inevitable.
Advancement in technology is also a significant boost towards the growth of the NFT mobile gaming sector. Phone companies are on a daily quest to improve the usability of their devices by increasing their memory, storage, and graphical capabilities, which makes them more adaptable to gaming. Blockchain technology is also rapidly expanding, creating room for bigger and better inventions.
On the flip side, NFT Mobile Gaming has massive challenges to beat where security is concerned. These games are constantly a target for hackers. They experience multiple data breach cases and lose huge sums of money to these attacks. Such cyber threats cast a big shadow over the industry, discouraging individuals from investing significantly.
Investing in a Developing NFT Mobile Game Can Earn You Profits
NFT mobile game development is a lucrative niche for investors and developers alike. It may not give instant profits, but investing in developing NFT mobile games can get you smiling all the way to the bank once the project gains traction.
The catch here is to invest in a game that gets players interested and keeps them in the game. According to a Chainplay.gg State of GameFi survey, 81% of GameFi investors prioritize fun over profits. This means that developers who create fun games with enhanced graphics, well-developed storylines, and the opportunity to generate impressive rewards stand a high chance of having their games go mainstream and their wallets bulk up.
How to Find the Perfect NFT Mobile Gaming Niche to Invest in
The ever-evolving nature of NFT gaming makes it challenging to pin down the best investment niche. However, certain factors, evolution notwithstanding, will often point you in the direction of a good investment niche.
The first step in finding promising projects for future investment is obviously a precise market analysis. You should identify the main trends of this market and study the play-to-earn games themselves. You can do it on your own, but using special analytical tools will make this process much easier. For instance, Apptica platform contains a wide variety of instruments and comparison tools that allow you to make data-driven decisions by simply looking at pre-made infographics and tables.
Once you find certain games you want to invest in, you should dig even deeper. The best way to identify a good investment niche is to find a project with a proper roadmap for future development. If you cannot see how the Game's team plans to grow, you have no business emptying your wallet into it. A detailed, realistic roadmap is the key to a sustainable and profitable gaming project.
The other factor to look for in an NFT mobile game before investing is its community. Forget about social media followers and online buzz. Get to the ground and test out a project's discord community. Analyze the engagement and activity its members have and their level of satisfaction with the game. A large, happy, active community is a tell-tale sign of a game worth investing in.