NFT Games Meaning (How It All Works)

Mihail Fashchevskiy
Written By Mihail Fashchevskiy
I have been in the crypto field for 4.5 years, big love for GameFi and NFTs.

In 2021, the semi-annual turnover of the NFT market exceeded $2.5 billion, thus setting a new record, this is a record amount and now it continues to grow. For comparison, the same turnover in 2020 amounted to $13.7 million, just think, this is an increase of 18.000% or 182 times.

In 2022, there was a trend for play-to-earn platforms where you can earn real money by playing games (some platforms provide an opportunity to earn an amount close to a real salary in some countries), the NFT industry picked up this trend and created the NFT games.

What are NFT games?

NFT games are platforms that allow the player to play games built on the blockchain while being able to mine/sell/exchange NFT objects. NFTs are of particular value because they can be used to upgrade, buy something, or have other functionality. They usually have a P2E model that allows users to play and earn money.

To put it simply, you play, and you get paid.

Development of the NFT games industry

In 2022, there is a surge in popularity among NFT games because many large long-awaited P2E projects will be launched this year (for example, Star Atlas). At the same time, there are already large players on the market, such as The Sandbox (capitalization of which is above $1 billion) or Axie Infinity (capitalization of $896 million at the time of writing)

Usually, projects implement a P2E system to attract players to play on their project, they replenish liquidity and make a profit, this is very convenient and due to this, 95% of new NFT gaming projects use the P2E system.

NFT games are fundamentally different from their use in the conditional year 2020-2021, where they were only talked about as a luxury or collectible item, now it is an object that is used as a document for the right to own any asset that has a function. In SandBox it is a piece of land or scenery, in Star Atlas, it is everything from the usual game ore to the planet.

Is it easy to create an NFT game?

Let’s take a look at the Web 3 market to start with and its size for new companies, for example, Banchor Protocol raised $153 million in ICO (a way to raise investments before launch), Status.im got $112 million, and the MobileGo game project got $53 million. The NFT market is unique and has an incredible growth rate, for example, in 2020 the capitalization was 100 million, and by the end of 2021 it was already $22 billion, this indicates a great interest in this subject of people and provides great opportunities.

 If in 2020 crypto was the trend, in 2021 the NFT of bored apes, then in 2022 P2E became the trend, the rapid growth of the region’s leaders to a billion-dollar capitalization prompted a large number of serious developers to enter this niche, and projects such as Star Atlas have been developing the game for the second year.

The NFT game is a mechanism that should be launched once and after that it will work autonomously, bringing you profit.

Since the games are built on the blockchain, this means that you will not need to hire a staff of 50-100 people to maintain the platform, in addition, if you are such a lazy person, then you can arrange a DAO (a decentralized form of governance in which all decisions are made by users) voting.

Is it worth buying an NFT game?

2022 can be called the year of P2E games, and games using NFT are the leader in it. In addition to the great demand, NFT games are an asset whose relevance will grow exponentially, it is no secret to anyone that the blockchain is the future, and parts of it like NFT will soon become something like walking the dog in the evening. The use of NFT in games is a marketing, financial and functional advantage. So what are the features of NFT games to buy?

Constant growth in demand

Let’s remember the beginning of the crypto market, this is a couple of uncertain projects and sluggish cryptocurrencies. This was followed by the NFT market, which gradually began to include artists and medium-sized companies. And the NFT games market, 2 years ago, major players began serious game development, attracting franchises, collecting millions of dollars, and hiring high-class specialists, why do you think?

The crypto market can fall as much as you like, but Web 3 is the future of the whole world, and NFT games are an integral part of it.

Functionality

NFT games offer a wide variety of possibilities in technical terms, NFT can be interpreted in any way in games – it can be an asset, payment, ownership, an avatar or something else. NFT can be integrated into any top game that currently exists.

Competitiveness

In 2021, the NFT market received a turnover of $22 billion, the same year the gaming industry earned a record $180 billion. NFT games will be integrated into the general gaming market, and at the same time, large companies will begin to introduce NFT into their projects, so the jump in the popularity of NFT games will grow many times, but now the market is in a rapid and confident emergence. Inception is an opportunity to become a new leader in the field and get into a multi-billion dollar company, as always happens in the history of business.

Best Game NFT Marketplaces

When interacting with the Game NFT market, special attention should be paid to marketplaces, each of which has its own characteristics, functionality, and purpose. We have analyzed the top Game NFT marketplaces and selected for you a list of the best for your consideration.

Opense website screenshot

Opensea

Particular attention should be paid to OpenSea, it is the leader among all NFT marketplaces, by the end of 2021, its capitalization grew to $13.3 billion, while the monthly trading volume on the platform is from $3.2 billion to $4.1 billion every month. So what are the features of this site?

• Easy to create and deploy new assets. All you have to do is create an account and upload the file.

• Wide range of assets. The platform has as many as 8 categories for NFT

• Good reputation

Website: https://opensea.io

Rarible website screenshot

Rarible

Rarible is one of the most popular NFT marketplaces, one of its most important advantages is its focus on the business relationship between the seller and the buyer. For example, an artist can create an NFT and directly contact the client he needs for cooperation, and the client can do the same

Rarible features:

– Unique NFTs. (here is a resume of Steve Jobs for work)

– By purchasing NFT on a variable, you can get additional Rari tokens that give you some rights to manage the platform.

– Clear reputation of the platform, for all the time there was not a single incident with Raible

Website: https://rarible.com

We have also selected platforms for you that are more highly specialized, but still leaders in the field.

Magic Eden website screenshot

Magic Eden

This is an NFT marketplace that fits perfectly with many NFT game projects. It is customized for launchpads and exposes favorable conditions and functions for cooperation. The platform is very popular, it is gaining up to $3.4 million in turnover per day, with more than 27,500 active users every day.

Features of Magic Eden:

  • One of the lowest commissions
  • A large number of popular collections
  • Ideal for NFT gaming launchpads

Website: https://www.magiceden.io

Binance NFT marketplace website screenshot

Binance NFTs

Binance NFT opened not so long ago, this is a branch of the well-known Binance.com. The platform has attracted a large number of investors and launched an active marketing campaign, while it is actively attracting major players in NFT gaming, realizing the full potential of this cooperation.

Features of Binance NFT

  • Safety. Binance NFT has one of the most advanced hack and scam protection systems
  • Reputation. Binance has been operating in the market almost since the beginning of the development of the Web 3 sphere and due to this it has a large reputation
  • Contests. The platform often holds contests

Some platforms (usual leaders in the area) create their NFT marketplaces to increase profits and specify their audience.

Website: https://www.binance.com/en/nft/home

Sandbox NFT marketplace screenshot

Sandbox NFT marketplace

Sandbox NFT marketplace was launched about a year ago but has already fully justified itself with the results. It was created to make it easier for The Sandbox users to exchange and sell their NFTs.

An artist can create NFTs and integrate them into the game The Sandbox, thereby increasing their value at times, this can be done by going through certain procedures. In addition, the Sandbox NFT marketplace offers a large number of categories that make it easier for its users to interact with NFT objects.

Website: https://www.sandbox.game/en/shop/

Best NFT Games

 The Sandbox 3D

This is the leader of NFT games in the metaverse, a sandbox game where the player can create their world and do what they want, it also has its marketplace and a large number of earnings in the game. Despite the underdevelopment of Virtual Universes, the game has 2 million active players and earned $93 million in November last year.

Website: https://www.sandbox.game/en/

 Axie Infinity

Axie Infinity is a collectible game similar to Pokemon Go where you can collect virtual animals, upgrade them and get rewards. The project is one of the leaders in its field, it also has the support of large companies such as Binance and Samsung. Sales at Axie Infinity hit over $2 billion

Website: https://axieinfinity.com

 Star Atlas

Star Atlas is one of the largest and most expensive NFT games in terms of investment, the game has not yet been released but is one of the most anticipated. Its main feature is that it is fundamentally different from all NFT games, as it can compete with real games from the gaming industry. It is built on the latest Unreal Engine 5 and has multifunctional gameplay with the possibility of earning.

Website: https://staratlas.com

Are NFT games better than NFT collectibles?

The potential of NFT collecting is great and it will grow, this is a new era of virtual art, but if we speak from a financial point of view and calculations, it is NFT games that are much more profitable, while these two areas can be intertwined.

NFT games are already a multi-billion dollar industry, over the next 10 years this figure can grow 10 times, the most relevant are P2E games because they turn the financial world order upside down.

Why do NFT games pay players?

NFT games encourage the sale/exchange of in-game resources, thereby replenishing liquidity, while they take a commission. Let’s look at an example:

Player A bought an nft object from player B.

The platform received the money in the form of commissions

Player A received money

Player B received an NFT object valued in real money.

By replenishing the liquidity of the platform with such transactions, capitalization and prices grow, and investors, new players, and funds are attracted, thus a completely autonomous project can pay players for what they play and at the same time earn money themselves.

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