What has changed in recent months in the nft games market?

October 6, 2023

The last quarter of 2021 pointed, according to some, to a hecatomb in the concept of nft games:

  • Many projects collapsed.
  • A good number of frauds emerged.
  • In general, the feeling was that a business model was coming to an end.

The truth is that the market is pointing much higher now than it ever did. And the truth is that the market is pointing much higher now than it ever did before. What has changed to give us these prospects?

The analysis of the expert Olipp, CEO of Warlands, can help us understand the situation and the changes we have experienced in less than six months.

What happened to the old NFT games market?

Basically a financial bubble. This could explain what happened. In the heat of several projects, especially Axie Infinity, games started to emerge out of nowhere. These were generally very basic projects in the click-to-earn range.

A large part of the system of these games was based on a pyramid economy model. As soon as players stopped contributing capital, the game suffered. But their tokens were also extremely manipulable, as we saw in the case of CryptoMines.

To this, we must add that a large part of these projects was not focused on from a professional point of view. In the best of cases, they were small groups of friends or acquaintances trying to launch a project with little depth and generally based exclusively on promises of high returns.

Obviously, this was not a sustainable model. All it took was a little push for this house of cards to collapse. It lacked some basic components such as playability, professional development teams, and the consistency of long-term projects.

This does not mean that in the future, we will not encounter sustainable click-to-earn models. We may well do so, but certainly on the basis of much more advanced concepts.

To end the perfect storm, the cryptocurrency market was faltering and starting to pull back noticeably. The result of all these elements coming together we already know: the bankruptcy of the vast majority of projects, quite a few losses, and the flight of many players/investors.


Why are expectations so high at the moment?

In words of the expert Olipp, there are several contributing factors. The reality is that there are currently a good number of nft gaming projects with a huge potential for the future.

Even in a difficult context such as the current one, these projects are able to continue to develop and finance themselves.

The keys are probably based on everything that was missing in that first initial phase of this market.

Firstly, they are projects that offer gameplay and a real entertainment model. It should be remembered that the fundamental basis of an nft game is that it is fun and can provide the option of profitability.

On the other hand, the vast majority of projects with a future and which are making their mark in the market are developed by professional teams with a long track record. Craftsmanship has been giving way to industry, which is obviously necessary.

On the other hand, the economic models proposed by these new games are much more reasonable, sustainable, and realistic. These are games where skill and the development of your style of play will play a part, so the profit is not just in getting in and out of a screen.

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