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No loss and no gain. The most promising tokens of the GameFi sector

How to effectively invest in blockchain-based gaming projects and why this segment of the crypto market will actively develop in the coming years.

Synopsis of

  1. The popularity of blockchain games
  2. Prospects for growth
  3. Risks for the industry
  4. Tokens with great potential

Analysts at trading platform Crypto.com believe that GameFi, NFT and meta-universes will be the most promising segments of the crypto market next year. According to analysts, large companies in 2022 will continue to show active interest in decentralized game projects and non-interchangeable tokens. RBC-Crypto experts gave a forecast for the GameFi segment for the next year and also named the industry’s most promising tokens.

The popularity of blockchain games

The high interest in GameFi projects is a cumulative result of the rapid development of two areas at once – decentralized finance (DeFi) and gaming, explained the development director of cryptocurrency exchange EXMO Maria Stankevich. She agreed with the opinion of Crypto.com analysts and added that the popularity of GameFi projects is primarily due to the blockchain networks on which they are created.

“The popularity and audience will increase in the coming months. The main challenges for the industry today are making blockchain networks work properly and ensuring security,” the expert said.

Prospects for growth

The GameFi sector is a new stage in the development of the blockchain industry, said Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. He explained that at this stage this direction of the market is “completely undeveloped”, on it you can either lose everything or get a big profit.

“The gaming industry as a whole promises rapid growth in the next 10 years, and decentralized games may become one of the fastest growing niches in this industry,” the expert predicted.

The growth rate of the GameFi segment can be judged by the workload of the Binance Smart Chain blockchain, on which many game projects are built, Soshnikov said. He recalled that in November the number of daily transactions in BSC increased by almost 170% compared to October. The nearly three-fold increase in a month is a clear signal that the GameFi industry is “getting ready to take off,” the director of cryptocurrency exchange service Alfacash added.

Risks to the industry

GameFi-project tokens will be in demand next year, but the sector is unlikely to be the most promising, warned Victor Pershikov, lead analyst at 8848 Invest. In his opinion, blockchain-based gaming projects have several difficulties that have not yet been solved and have a negative impact on the sector’s capitalization growth.

First, cryptocurrency is still rather poorly integrated into the global gaming industry, which limits the number of investors in GameFi, the analyst explained. Second, GameFi projects cannot technologically compete with the gaming industry, and are more likely to be “indie games” whose audience, again, is limited, Pershikov argued.

“In terms of graphics and visual presentation, GameFi projects are not perfect yet, and it takes at least 3-5 years to bring them to a whole new level,” the analyst added.

Third, GameFi is a young and low-capitalized sector compared to the crypto market and larger sectors, said 8848 Invest’s lead analyst. According to him, any decline in market capitalization caused by fundamentals or negative events could significantly reduce the value of young GameFi tokens, while not doing much damage to more highly capitalized projects.

High-potential tokens

According to Soshnikov, token projects Mobox, X World Games and Zoo will be able to show strong growth next year. The expert explained that these projects are already in the top 20 in terms of monthly user activity and have a reserve of growth, unlike the segment leaders.

“The projects are somewhere in the middle, which suggests that they still have potential for growth. And the presence in the top 20 already indicates that there is a base, a foundation on which this development will go,” the director of the cryptocurrency exchange service Alfacash added.

Pershikov advised to pay attention to FaraLand, a multiplayer project on Binance Smart Chain. In the coming months, FaraLand plans to launch its project on iOS and Android, which will significantly increase the number of its users, the analyst explained 8848 Invest. The expert also called the MyNeighborAlice project interesting.

“ALICE token has not shown growth this year, but amid the cooperation of the development team with Binance and the creation of NFT on the exchange platform, the number of participants in the project may increase next year, and overall this is one of the early GameFi projects, which continues to actively develop even as more popular competitors have appeared,” Pershikov predicted.

When building a portfolio of game sector assets, the bulk of funds should be invested not in GameFi tokens themselves, but in blockchain projects that create the foundation for the development of this sector, the analyst advised. He also recommended investing no more than 10-15% of your portfolio in the GameFi sector.

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