GameFi users profit crushed in 2022
By Carine Lee
03:41, 28 July 2022
As blockchain gaming developers are looking to bring GameFi to the masses, 2,428 surveyed GameFi investors said they saw their profit dive in 2022.
The survey, conducted by Chainplay.gg in June, reported 89% of global cryptocurrency investors saw their GameFi profits drop in the last six months with 62% of them losing more than 50% of their profits.
GameFi is a combination of gaming and decentralized finance.
AXS to US dollar
GameFi combines blockchain technology elements such as non-fungible tokens (NFTs) and cryptos with gaming to provide economic incentives to players. GameFi is also referred to as play-to-earn (P2E) gaming.
Famed P2E game Axie Infinity, allows its players to stake its AXS and the token can also be used for payment in the game and even as participation in governance vote.
What is your sentiment on AXS/USD?
Poor game design
More than half of investors surveyed said that “poor in-game economy design” was the main reason for the decline in GameFi profits in the last six months.
As for 21% of the investors, “reward token price decrease” attributed to the decline in profits.
Another 15% thinks it is because of the “blockchain gaming sector bubble burst”, and 6% is of the opinion that the drop in profit is due to bitcoin’s performance.
But according to the survey, investors are only spending an average of 2.5 hours a day on GameFi, that is 43% less than 2021.
GameFi quality needs to improve
Not only are investors spending less time on GameFi, 81% of the surveyed investors are also prioritizing fun over earnings when it comes to future GameFi projects.
It seems that future GameFi projects will have to improve on game quality rather than just profit.
The Sandbox (SAND), a P2E game where players build, own and monetize their gaming experience on the blockchain creating their own fun factor.
SAND to US dollars
That being said, profit is the biggest motivator for people to join GameFi, 51% to be exact, according to the survey.
But not only is profit the motivator, curiosity seems to play a role here as well, given that 43% of female investors are in GameFi because they are curious about GameFi.
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