In simple terms, crypto gaming refers to video games that integrate blockchain technology, allowing players to own, trade, and earn digital assets. This fusion of gaming and blockchain has created a new way for gamers to interact with virtual worlds and in-game economies.
The concept of crypto gaming has evolved significantly since its inception. Initially, games were straightforward, with limited interactivity and financial incentives. However, the development of blockchain technology and non-fungible tokens (NFTs) has transformed the landscape, enabling complex ecosystems where players can truly own and monetize their in-game assets.
In this article, we will examine the key concepts that define crypto gaming and explore some of the most popular projects in the blockchain gaming space.
Key highlights:
Crypto gaming integrates blockchain technology into video games, enabling players to own, trade, and earn digital assets, creating new interactions within virtual worlds and in-game economies.
Blockchain-based games employ blockchain for decentralized, transparent ledgers of in-game transactions and assets, ensuring security and trust among players.
Popular crypto games like Notcoin, Hamster Kombat, and The Sandbox have gained significant traction, showcasing that engaging gameplay combined with play-to-earn features can attract a large user base, including non-crypto enthusiasts.
Despite challenges, such as the public backlash against NFTs in games, the success of well-designed crypto games highlights the potential for continued growth and innovation in the blockchain gaming space.
What is crypto gaming?
Crypto gaming (also known as blockchain gaming) refers to video games that use blockchain solutions in some capacity. These solutions usually include NFTs, cryptocurrencies, or unique monetization models like Play-to-Earn (P2E).
What's the difference between NFTs and cryptocurrencies? NFTs are unique digital assets representing ownership of specific items like art collectibles or in-game items, while cryptocurrencies are fungible digital currencies like Bitcoin or Ethereum used for transactions. NFTs are distinct and indivisible (non-fungible), whereas cryptocurrencies are identical and can be exchanged on a one-to-one basis (which makes them fungible, like traditional money).
The crypto gaming market has grown rapidly over the past couple of years, and the growth trend is set to continue in the coming years. According to a report by Fortune Business Insights, the blockchain gaming market is expected to grow from $154 billion in 2023 to $615 billion in 2030.
Crypto gaming coins and tokens boast quite a large market cap as a whole (about $8 billion as of writing), representing a significant share of the total crypto market cap. Below, you can find a snapshot of the leading crypto gaming cryptocurrencies as of July 2024.
Key concepts that crypto games from traditional games
While crypto games and traditional games share many similarities in terms of gaming mechanics, graphics, and genres, there are several differences that make them clearly distinguishable from each other. Here are the main concepts that define crypto games in our opinion:
The use of blockchain: Blockchain technology underpins crypto games by providing a decentralized and transparent ledger for all in-game transactions and assets. This ensures security, immutability, and trust among players.
Tokenization: Involves converting in-game assets into digital tokens that exist on the blockchain. These tokens can represent anything from virtual currency to in-game items and can be traded, sold, or transferred outside the game itself, creating a real-world value for digital items.
NFTs: Represent ownership of a specific item or piece of content within the game. Unlike cryptocurrencies, NFTs are indivisible and unique, providing proof of ownership and rarity for digital collectibles, characters, or other in-game assets.
Play-to-earn: By playing the game, completing tasks, or achieving specific milestones, players can earn crypto or NFTs, transforming gaming from a leisure activity into a potential source of income.
While there are some other aspects of crypto games that make them unique – such as interoperability of in-game assets, the use of cryptocurrency in gaming for purchasing various items, and more – the list above should provide a good starting point for determining the differences between traditional and crypto games.
Most popular crypto games
Over the past couple of years, many cryptocurrency games have been launched with greater or lesser success. However, there are a couple of games that have managed to break the typical crypto gaming mold and become popular among non-crypto enthusiasts as well.
Notcoin
Notcoin is a P2E clicker game launched on the Toncoin platform earlier this year. It’s a simple game that runs as a mini app on the Telegram messenger and allows users to tap on the screen to earn in-game currency, which can then be used to upgrade the speed at which new coins are earned. NOT, the game’s native cryptocurrency, is earned by completing various tasks and participating in game activities.
The game has amassed a player base of over 40 million, according to the team’s announcement in late June. At the time of writing, the NOT token is trading at $0.016 and boasts a market capitalization of more than $1.64 billion, making it one of the largest crypto gaming assets in the sector.
Hamster Kombat
Hamster Kombat follows in the footsteps of Notcoin, being a tapper mini-game on Telegram. What’s perhaps most impressive about Hamster Kombat is that it managed to surpass Notcoin in terms of popularity, amassing 239 million between its launch in March. The game puts players in the shoes of a crypto exchange CEO who has to make various decisions to increase their profit per hour. The profit can be increased by completing in-game tasks and also by participating in exclusive daily cipher and daily combo card events.
Hamster Kombat is expected to launch its native token in July 2024. However, several exchanges have already listed HMSTR for pre-market trading, including Bybit and KuCoin. As of writing this article, HMSTR pre-market orders are filling at about $0.120.
The Sandbox
The Sandbox is a virtual world where players can build, own, and monetize their gaming experiences. It uses blockchain technology to empower players with ownership of their creations. Players can trade in-game assets, which are represented as NFTs, on The Sandbox marketplace, fostering a robust economic system, making it one of the best play-to-earn crypto games overall.
It’s worth noting that the game initially launched in 2012 as a 2D mobile game developed by Pixowl. The company was acquired by Animoca Brands – one of the leading metaverse companies – in 2018, and The Sandbox was relaunched as an open-world metaverse in 2021. The game has since attracted millions of users, including celebrities like Snoop Dogg, Deadmau5, Steve Aoki, and major companies such as Adidas, Atari, and more.
The bottom line
Crypto gaming has become more prevalent in recent years, but the trend has encountered several obstacles along the way. Perhaps most well-publicized was the backpack against the use of NFTs in games, with triple-A studios like Ubisoft backtracking on their NFT integrations due to public outrage.
Still, games like Notcoin, Hamster Kombat, and The Sandbox show that people will gravitate towards crypto games that are well thought-out and engaging, especially if they have a play-to-earn component that allows them to earn money while having fun.