Crypto Guide: What are Play-to-Earn Crypto Games
Play-to-earn is a category of blockchain-based games which reward players with in-game assets such as NFTs, or even crypto tokens that they can possibly trade for other coins or even fiat currencies. Its's part of the global blockchain market which experts estimate to grow by USD 43.45 billion, from 2024 to 2028, growing at a CAGR of 58.51% during this period. While these crypto-based games remain popular and lucrative for some, these are largely understood by the general public.
The financial sector isn't the only industry that's dramatically changed by the cryptocurrencies and the blockchain technology. With its key characteristics of immutability and decentralization, it's only a matter of time before the blockchain technology makes its presence felt in entertainment and the gaming industry. One of the popular niches to have grown from this industry is the play-to-earn (P2E) model for blockchain-based games.
No, we will not be talking about the crypto casino and provably fair games that are growing in popularity in top Bitcoin casinos. Our blog is all about popular play-to-earn crypto games such as Axie Infinity, Decentraland (MANA), and the fast-rising (but currently controversial) Hamster Combat.
These play-t0-earn crypto games blend the technologies cryptos, non-fungible tokens (NFTs), and decentralized finance (DeFi) to deliver not just entertainment, but real value to players through in-game achievements and rewards.
Understanding play-to-earn crypto games
Play-t0-earn crypto games are often designed and built using Layer 1 blockchain networks such as Ethereum, BNB Chain, or the Solana. The Layer 1 blockchain is the foundational level of blockchain architecture, which works as a primary and autonomous chain on which transactions are directly completed, and it also offers the appropriate infrastructure to develop smart contracts and decentralized applications.
By using this platform, game developers and studios can tokenize game items, and assign unique digital identities. Through this approach, players can become rightful owners of these in-game items. Since players will have "ownership" over these in-game items, they can hold onto it, trade these items for other NFT-linked assets, or convert these rewards into crypto tokens which they can trade in exchanges, or even swap for fiat currencies.
A great example of this is the Axie Infinity experiences of young players from the Philippines. Axie Infinity remains a popular P2E game today, hitting its peak a few years again thanks to in-game collectibles that can be traded and sold. In Axie Infinity, these are the rare Axies that are used for battles and act as NFTs as well, that are owned by players.
Since these NFTs are owned by players, they can be sold and traded ay the in-house marketplace, or in the secondary NFT marketplaces. In Axie, players can earn the game's native tokens with real-world value. Some players often swap these for fiat currencies and use it to pay for products and services.
In short, pay-to-earn crypto games like Axie Infinity allow its players to have fun with the games and earn rewards which they can trade, sell, or swap for fiat currencies.
Popular play-to-earn crypto games
The play-to-earn games category continues to grow, with the following as the most popular among players and crypto enthusiasts:
Axie Infinity (AXS)
Axie is arguably the most popular example in the fast-growing play-to-earn category. It's a blockchain game that's developed by Sky Mavis, a Vietnamese studio, and relies on Ethereum-based cryptocurrencies. The game is focused on Axies, or axolotl-inspired digital pets that players can own and use to battle in the game. These Axies are also designed as non-fungible tokens (NFTs) which players can trade and swap in the marketplace for crypto tokens or fiat currencies. Sky Mavies charge a 4.25% fee when players trade these NFTs on its marketplace.
In addition to these NFTs, Axie players can also collect reward tokens called Smooth Love Potions or SLPs by completing quests or winning battles. These SLPs are used to breed the Axies, or exchange these for cryptos such as Ether (ETH). Also, the platform also uses a multi-utility token called the Axie Infinity Shards (AXS), which act as the game's payment currency and governance token.
Aavegotchi (GHST)
Aavegotchi is an open-source and decentralized NFT gaming protocol where players can gain ownership, with GHST token as its eco-governance token that powers the community. On its website, the developers market the Aavegotchi as "digital ghosts" that are forever trapped in the blockchain, and by playing them, they can temporarily forget about their existential anguish.
Technically, the Aavegotchi is an NFT that exists in the Polygon blockchain. Polygon is a Layer 2 scaling solution that runs alongside the Ethereum blockchain, which boasts low fees and fast transactions. The Aavegotchi team has recently announced that it's planning to migrate to a "Supernet", a dApp chain powered by Polygoncalled "Gotchichain".
Aavegotchi works like the other play-to-earn crypto games like Axies where players can customize their NFTs. Players can customize each Aavegotchi using different wearable such as glasses, hats, and other accessories, which can be bought, sold, and traded as NFTs. Each wearable features a distinct set of traits and features that can impact the NFT's appearance, gameplay abilities, and even rarity.
As mentioned, GHST serves as the ecosystem's native utility token. Players can use GHST for a variety of purposes, such as a medium of exchange, for staking and earning rewards, for buying in-game assets such as wearables, and when participating in governance decisions.
Decentraland (MANA)
Decentraland is a 3D browser-based virtual world developed by Ariel Meilich and Esteban Ordano. The virtual world was opened to the public in February 2020, and it's currently run by the Decentraland Foundation. There are several definitions and descriptions that have been used to characterized Decentraland.
Primarily, it's three-dimensional online platform that allows users to take part in a shared digital platform where they can buy virtual plots of land, play games, socialize, create, buy then sell these digital items. Players can use virtual or augmented reality goggles to explore the virtual world or load the program on the screen of your preferred device to play.
Decentraland's native digital currency is MANA, which players can by participating in the many activities on the virtual world. MANA is an ERC-20 fungible token and it's spent (or burned) when used to purchase anything on the virtual world. Participants can also use the token in creating centralized apps, games, and other services. Also, the blockchain boasts two non-fungible (ERC-721) tokens, the LAND and Estate.
Here's how to get started with play-to-earn crypto games
If you're interested to explore the world of play-to-earn crypto games, here are a few steps to follow:
- Research the different play-to-earn crypto games. There are dozens of play-to-earn crypto games, and Axie Infinity and Aavegotchi are just two examples. Review and compare these games based on gameplay, potential earnings, complexity and community support. As always, pick a crypto game which you'll enjoy playing while earning some tokens along the way.
- Set up your crypto wallet. These crypto games operate on the blockchain, so you'll need a compatible crypto wallet where you can save your tokens.
- Acquire the necessary cryptocurrency. Play-to-earn games require cryptocurrencies and tokens to participate. Check the developer's white paper or FAQs to know what tokens are accepted to get started in the game.
- Review the gameplay and community rules. Like other games, it's important to know how the rules, its mechanics, and objectives. Pay attention to tips and tricks on how you can boost your earning potential. You can check the community's guides and tutorials, or search for resources online. Don't forget to connect with the community!
By following these basic steps, you can start enjoying these popular play-to-earn crypto games. With these types of games, you don't just get the fun and entertainment that you're looking for, but you'll also earn a few cryptos and tokens along the way. As you accumulate cryptos and NFTs, you have the option to hold, trade, or sell these for bigger earnings.
