2022 Prediction: ‘Gaming Will Lead to Further Crypto Adoption’

Industry experts weigh in on blockchain gaming predictions for 2022 which include a potential market correction, an uncertain regulatory environment and onboarding millions of more users

article-image

Blockworks exclusive Art by Axel rangel

share

key takeaways

  • Crypto-gaming companies secured $500 million in funding during the first half of 2021
  • Gaming will be an on-ramp for crypto adoption, according to Naavik co-founder

2021 was the year of the NFT, literally. The term was so acclaimed that dictionary publisher, Collins, named it “Word of the Year.”

But beyond tokenized art, play-to-earn non-fungible token (NFT) games surged in popularity. Funding for crypto-gaming companies hit $500 million in the first half of the year. 

Blockchain-based gaming, unarguably, has gone from fringe to mainstream in the past twelve months. Ubisoft, a traditional gaming publisher, announced in-game NFT integration in early December.

As the gaming NFT market nears $10 billion, Blockworks spoke with industry executives about their biggest predictions for the year to come.

“Gaming makes crypto easy to grasp”

Gaming is and will continue to be an on-ramp for cryptocurrency adoption, according to Naavik co-founder Abhimanyu Kumar.

Abhimanyu Kumar, co-founder Navik

“It’s going to lead the adoption curve because of the nature of the medium. It’s entertaining and it’s fun. It makes crypto easy to grasp,” Kumar, who runs the gaming advisory and research firm, told Blockworks in an interview.

Many cite the popular video game, Axie Infinity, as an example of ways gaming can onboard millions of users into the space. The virtual game, which has amassed almost three million users globally, allows players to earn monetary rewards for trading, battling and breeding NFT creatures. 

Around 50% of those users have never owned crypto and 25% do not have access to traditional financial services such as bank accounts, according to Axie Infinity co-founder Aleksander Larsen

“With Axie Infinity you [now] have minimum wage earners in the Philippines who understand what a crypto wallet and what a DEX (decentralized exchange) is,” Kumar added. “A lot of my own friends don’t get that yet.”

Some proponents have dubbed blockchain games as a way to achieve financial independence in developing economies such as Venezuela and the Philippines with anecdotes of players making enough to feed their families. (However, earnings can potentially take a hit contingent upon market volatility.)

“It’s really developing economic value for people who spend their time [gaming] and can become by definition a job with a revenue stream,” said president of the Blockchain Game Alliance, Borget Sebastien. 

Chris Dixon, a general partner at Andreessen Horowitz (a16z), described the industry as continuing “very strongly” next year.  

“[Gaming] will be important at the application level but also to cause more investment into infrastructure,” Dixon said in a Twitterspace in early December. 

Roadblocks to widespread adoption

Jimmy Stone,consulting partner, Naavik

Others wonder what the regulatory environment will look like for blockchain gaming in 2022. Jimmy Stone, a consulting partner at Naavik, described the uncertainty as “another concern from an adoption standpoint” but “would be figured out over time.”

“I’m still quite bullish on adoption over the next 12 months,” Stone said.

Additionally, Kumar said that it’s “highly likely” that there will be a market correction in the next year. 

“There might be a funding lull. Bad stories might pop up like a hack [or a] project that was not able to hit its development deadlines,” Kumar said. “We will get past it and there will be a new wave again.”


Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.


Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

👨‍⚖️ SBF’s courtroom sequel: Plus, Coinbase’s legal loss was DeFi’s gain

article-image

Public mining companies have been acquiring sites, refreshing machine fleets and diversifying business models in preparation for the event

article-image

Exploit shows centralization can sometimes be an asset

article-image

The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

article-image

The DAO first voted on enabling SAFE transfers over a year ago