Road to Success

A recently released report by MarketsandMarkets, a revenue impact analytics and advisory firm, predicts that the global blockchain gaming market is bound to reach $65.7bn by 2027. Today, we will give you the key takeaways outlined in the report.

A rapid 5-year crypto market growth is expected

According to the Blockchain Gaming Market report, the current market worth is roughly around $4.6bn, far from what its future potential is likely to be. The expectation is for it to grow at a CAGR of 70.3% in the next five years. Supposedly, BNB Chain’s growth will be the most expeditious in the 2022-2027 period.

Increase in funding as the key driving factor

But what are the main driving forces behind the market growth? The report identified the key factor: a general increase in funding and investments in blockchain games. This is great news for those who fancy the idea of earning with crypto, as the play-to-earn model continues to attract the attention of many crypto gamers. At the same time, an increasing number of people are comfortable investing in and managing their NFTs.

Ethereum is the leading crypto market segment.

As for what the fastest-growing segment of the crypto market is likely going to be, the report predicts the crown will go to Ethereum. There are, in fact, many play-to-earn crypto projects that are using its blockchain to reward their players, with some examples including My Crypto Heroes, The Sandbox, CryptoKitties, and Gods Unchained. All of these are likely to play a role in its market growth.

Asia Pacific region to come out as the winner in market size.

Region-wise, it looks like the Asia Pacific region will be the one to be on the lookout for. The report forecasts it’s likely to come out as the winner in terms of sheer market size. There is an estimated number of three billion gamers around the world, and half of them live in the Asia Pacific region. Based on this, the report identified this region as a developing hub for blockchain gaming with rapid growth potential.

The shift from traditional to blockchain gaming

Even beyond the region, the authors of the report observe a shift from traditional gaming enthusiasts switching over to blockchain-based games. In traditional video games, as we know them, any items acquired, whether potions, gold, weapons, or similar, are centralized and thus tied to the user account. Blockchain games turn the concept on its head because these digital assets become NFTs. As such, they obtain marketable value, and the players are free to take them outside of the game and trade or sell them.

Any blockchain game that lets players earn these NFT items or cryptocurrencies is called a play-to-earn game (or P2E for short). In some cases, an NFT can even be a character the players evolve or customize over time, or it can give immediate gameplay advantages, such as a plot of land. Unlike what is the case in traditional video games, these NFTs aren’t locked to the server; rather, they have been safely tucked away in the player’s wallet.

The upcoming regulatory challenges

Since concepts such as NFT and P2E are still relatively newcomers, the regulatory bodies are trying to figure out how to classify them and tax them accordingly if need be. If they decide to classify them as assets, we could see taxes being imposed on each transfer which could go as high as 30%. This could have the potential to drive many players out of the market.