planty co
@planty
The Rise and Fall of GameFi: A Critical Analysis In recent years, the GameFi sector has experienced a significant surge in interest and investment, followed by a rapid decline. This essay explores the factors behind this phenomenon and examines the current state of the GameFi industry. The initial hype surrounding GameFi was driven by several factors. The NFT boom of 2021 played a crucial role, as non-fungible tokens are an integral part of the GameFi ecosystem. Additionally, the success stories of projects like Stepn and Axie Infinity created the illusion that blockchain technology had found another real-world use case beyond DeFi. Investors were particularly drawn to the idea of onboarding new users into the cryptocurrency space through gaming, as they believed that gamers would be more receptive to concepts like metaverses, NFTs, and tokens.
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planty co
@planty
However, the fundamental value proposition of GameFi – the ability to manage in-game items more efficiently – may be flawed. The author argues that approximately 90% of gamers purchase in-game items for entertainment purposes and quickly forget about them, with only a small fraction interested in trading these assets. This observation challenges the core premise of many GameFi projects. An analysis of investment trends reveals a stark decline in funding for GameFi projects. In 2022, 98 projects received a total of $2.7 billion in investments. By 2023, these numbers had plummeted to just 32 projects (-67%) and $450 million (-83%) in investments. This dramatic decrease suggests a significant loss of confidence in the sector.
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Snaka 🎩
@snakeja
wen altseason?
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