August 30, 2022
By Anjali Kochhar
Whether or not there is an intersection between those who love sports and those who are into cryptocurrencies, both industries together are the future. Be it the blockchain-induced sports fan engagement platforms or the rising popularity of play-to-earn games with rewards in cryptos, this collaboration has kept the investors going amid the current crypto winters.
Several reports have surfaced in the recent time showcasing an upward trend in gaming-led metaverse market.
A report published by decentralized application (DApp) data aggregator DappRadar last week, the collapse of Terra in May was similar in scale to the 2008 subprime mortgage crisis.
“It is becoming clear that the Terra debacle has become a Lehman brothers-like event that has sent shockwaves across the entire breadth of the crypto industry and aftershocks that will affect us for many months,” the report said.
However, the report noted that blockchain gaming and metaverse projects showed either minimal drawbacks or even positive signs of growth in the same period.
According to the report, DeFi and NFTs saw the biggest drops with 14.8% and 12.2% apiece, while blockchain games and NFT-related metaverse projects “managed to sidestep the ensuing bear market” by posting increases of 9.51% and 27% each.
While the average amount of activity from unique active wallets (UAWs) in NFTs dropped by a hefty 24% in Q2, blockchain gaming saw a drop of just 7%, suggesting that users continue to interact with gaming DApps “at a more or less the same rate as before the Terra incident.”
The trading volume for metaverse-related NFT projects was also described as a “beacon of hope,” as volumes increased by a whopping 97%.
Growing trend of blockchain gaming
Over the last few decades, new technologies have emerged and created economic opportunities. Two of them are online gaming and blockchain technology. In recent times, there has been a rise in online gaming platforms including blockchain technology in their ecosystem.
Some of these games are built in the metaverse while others are just play-to-earn games encrypted by blockchain technology for transparency.
In the recent time, blockchain games have not only attracted Web3 users but have somehow intrigued Web2 users as well.
As per industry experts, blockchain gaming is also becoming more viable for mainstream adoption.
Sunny Bhanot, co-founder and CTO of cricket NFT platform Rario said, “One of the key drivers of attracting gamers to a gaming platform is the fairness of the platform. Biased platforms rarely attract serious users, especially in the game of Real Money Games (RMG). Blockchain ensures every transaction on the platform is visible for the world to see and dissect, and build confidence among users about the fairness of the platform.”
Emotional Attachment to drive user engagement
More and more global sports stars have started associating with the crypto industry in some way or the other. While some players have teamed up with NFT platforms, some have gone a step ahead and launched their own NFTs.
There are platforms that help users win the NFTs of their favourite sportsperson driving engagement through the emotional angle.
Kameshwaran Elangovan, Co-Founder & Chief Operating Officer at NFT marketplace GuardianLink said, “Considering the emotions that get attached to NFT games and the exposure to technology, it will not be long before the collaboration becomes mainstream.”
“Just like how it’s so odd to tell that your car has an air conditioner today, it would very soon be odd to tell that game asset are NFTs… because that would be the de facto standard,” he added.
Arijit Mukherjee, Founder of NFT marketplace Yunometa believes that the crypto industry adds immense value for tournaments, franchises and sports players worldwide as it consists of the same demographic of Gen Z’s and millennials that these games attract.
“On the other hand, NFTs definitely get eyeballs when globally recognised players drop their collection for fans. Imagine the craziness to own Sachin Tendulkar’s bat and own its NFT from his desert storm innings in Sharjah or your favourite sports team’s digital avatar if it ever launches. The sheer hype and word of mouth will help to accelerate the growth of NFTs in India and the world,” he added.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.