GameFi has been a particularly interesting space over the past year, although the overall crypto market has been moderate - amidst the raging debate over whether we're in a full-fledged bear market (and if so, how long) – **Many other subsets in the crypto market have been hit. NFTs, DeFi, and GameFi are no exception. **
While “blue chip” NFTs persist, small and medium-sized projects have been hit, and while DeFi is far from over, the impact of Terra Luna’s disruption could have lasting ripple effects within DeFi. According to a new report, GameFi's active user numbers have plummeted, and it's sparking longevity concerns among its typically discerning audience.
What do we learn from this audience and market
Regardless of how mainstream game developers feel about the issue, the audience is undoubtedly there. If the market dictates, providers will eventually offer; however, it may be a slow process until a major P2E competitor enters the market threatening traditional publishers and developers. Of course, making a video game takes sweat and time (not to mention capital).
While not all xyz-to-earn models will survive, certainly in the short term, there are still plenty of reasons to be optimistic about play-to-earn once more structural pieces hit the market. The intrinsic connection of in-game rewards in some of the biggest games on the market today is a major reason why blockchain-based games have become so radical. However, in the short term, larger market waves will undoubtedly affect individual game economies, and we may be able to determine in just a few years that something "logical" in P2E is likely undiscovered today.