Red Kite Research: The Predictions on the Future of Gaming Guilds
The NFT gaming market saw a boom in activity in the second half of 2021. Play-to-earn games have rapidly grown in popularity, attracting a huge influx of new users to this sector. Since gamers still have certain technological and financial limitations when playing games, gaming guilds were established to break down such barriers.
Currently, the crypto market is undergoing erratic fluctuations, leading to the downturn of NFT gaming. Gaming guilds, however, are developing considerably. What do you think about the future of play-to-earn gaming guilds? In this article, we will help you find out more details about P2E gaming guilds and make some predictions for their future.
An overview of crypto gaming guilds
Crypto gaming guilds serve as platforms for new players by providing them with the resources they need to begin playing the games. Gaming guilds aim to involve and enable individuals and communities to participate in such games without upfront capital. This significantly lowers the entry barrier to play-to-earn games for all players and establishes a win-win situation for both players renting NFTs and gaming guilds.
Crypto gaming guilds is now one of the biggest and fastest-growing markets as these business models potentially address some of the fundamental issues that play-to-earn games face. There are numerous guilds with thousands of members, scholars, and attractive reward programs such as Yield Guild Games (YGG), Avocado DAO, Merit Circle, Good Games Guild, and so on.
Why gaming guilds?
In spite of the challenging situation, blockchain gaming still accounts for 52% of total blockchain usage, according to DappRadar’s report for Q1, 2022. Play-to-earn games have developed into a major driver of market activity and a point of entry for new users into the blockchain world.
Play-to-earn games reward players for participation with tokens that are useful within the game and tradeable on exchanges for fiat currency. As a result, these games give gamers a great opportunity to earn an income.
To start playing games, users will need to spend money to buy items, NFTs, or pay a participation fee. In some cases, this charge might be quite high, which puts participants at a financial barrier. Gaming guilds’ mission is to assist players in overcoming the entry barrier issues by offering “scholarships” to those who couldn’t afford their upfront cost. In exchange for lending scholars the NFTs they need for games, guilds receive a portion of the money these scholars make.
Before the P2E model, gamers used gaming guilds to meet their social demand to share strategies and experiences. However, traditional gaming guilds and crypto gaming guilds have significant differences. Traditional guilds are organized groups of gamers who regularly play a certain game together, but the guilds may grow and decline with the game. Instead, members of crypto gaming guilds can switch to other well-liked games that can bring in more profit if a game loses its popularity. Because of this, crypto gaming guilds will have a lot of potential development both now and in the future.
Observations and predictions for gaming guilds’ future
High expectations exist for blockchain gaming, since its activity has surged 2000% from the previous year (Q1, 2021 — Q1, 2022). Additionally, at least $2.5 billion has been invested in blockchain games and their supporting infrastructure by VCs and investors just in the first quarter of 2022.
Due to the market downturn and the popularity of the games, NFT values, token prices, and earnings from play-to-earn games can all be volatile. These raise concerns about play-to-earn’s long-term sustainability. The long-term viability of P2E guilds is also called into question by sustainability issues, since assets owned by guilds run the danger of losing value if a game suddenly loses players or collapses, for example, when cash running out of games exceeds revenue coming in. In such cases, a guild’s earnings could decline as quickly as the market conditions deteriorate.
Amid the negative market, there have been some positive signs for cryptocurrency gaming. According to DappRadar, despite the fall in crypto prices, seven of the top ten Dapps were in the games category, with more 1.7 million active wallets specifically linked to gaming within 7 days (July 14 — July 21).
Besides market factors, making players willingly give up resources like time, money, or both to play the game for enjoyment is another challenge for P2E games. In the future, we believe that P2E games can gather a sufficient number of players who willingly sacrifice their resources to play these games for the gameplay rather than only to make money.
If you are a gamer and have spare time to spend playing crypto games, joining a gaming guild might be a great opportunity to make money while having fun.
The development of blockchain gaming is undoubtedly in its early stages. It is clear that despite the changing market conditions, there is still a sizable demand from players and investors for blockchain gaming. As a result, the rise in popularity of play-to-earn games and the development of metaverses will provide gaming guilds with numerous potential opportunities to grow in the future.
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