Week in GameFi: Market Rebounds, Tap-to-Earn Fades, and SuiPlay Ecosystem Gains Traction

The strength of the GameFi sector returned this week, making across-the-board significant gains in both market cap and trading volume.

With Bitcoin now well over the $100,000 mark, the crypto landscape most associated with gaming seems almost buoyant, even as it leaves behind a couple of outdated models (T2E being one of them). This week’s developments, however, speak much more of an innovative rising tide across the entire ecosystem, even if most of these seawall innovations might, in the end, benefit much more the development houses than the would-be player investors.

GameFi Market Bounces Back Amid Bullish Sentiment

The overall market cap for GameFi surged by 7% this week, reflecting renewed interest and enthusiasm from investors following Bitcoin’s stunning leap past $100,000. In tandem with the price rally, GameFi trading volume exploded by 37%, indicating a potential breakout for the sector after what had been several weeks of modest activity. The Fear & Greed Index, meanwhile, climbed sharply from 55 to 70, marking a return to “Greed” territory and confidence around digital gaming assets and their associated economies.

It is worth mentioning that every one of the leading 10 gaming tokens measured in the industry not only held their value but some even exceeded their expected value by recording noteworthy gains last week (and thus, qualification for the State of the Sector report). The Altcoin Season Index, however, still remains low—at just 39. This suggests that broad-based market recovery we hinted at last week is still very much in play.

Tap-to-Earn Model Deemed Unsustainable

Public declamation this week has made it clear that the tap-to-earn (T2E) model is probably finished. Speaking at Token2049 in Dubai, the co-founders of Notcoin said it straight: the T2E format is “probably dead.” They pointed to a lack of long-term player engagement as the chief reason for its downfall. Why isn’t T2E keeping players engaged? Well, the way we see it, it was once supposed to serve as a not-so-simple, not-so-easy on-ramp for mass GameFi adoption.

The conversation is now moving toward sustainable gaming models, which focus on the core gameplay and the kind of long-term value that’s really entertainment. This isn’t about repeatedly interacting with a game and being prodded by token rewards that are essentially bait to keep you playing. Developers and investors are looking to a future where GameFi is about much more than tokenomics and where its chief markers of success are the quality of the game experience and how tempting it is to keep replaying it.

This sentiment indicates an important shift for the sector. If the initial period of GameFi was typified by speculative frameworks and ephemeral user experiences, the new direction the sector seems to be heading in is one characterized by greater emphasis on user retention, narrative, and robust in-game economies.

SuiPlay and Mythical Games Lead Next Wave of Growth

In the midst of this changing shift in tone, platforms such as Mythical Games are still flourishing. They now boast an earth-shattering $650 million in transaction volume, thanks to their user pool of over 7 million players—this, right before an eagerly awaited partnership with FIFA that could rocket Mythical’s reach into everyday sports gaming.

A significant contender in the GameFi sector, Mythical Games has constructed a solid base of operation with its licensed games like NFL Rivals and its partnerships with leading intellectual properties such as Pudgy Penguins. These developments serve to highlight how the next level of blockchain gaming might be more than ever tethered to established brands and tried-and-true entertainment forms.

At the same time, Sui Play, the console-gaming ecosystem being built around the Sui blockchain, is getting attention.

This week, Playtron introduced Game Dollar, a stablecoin specifically for gaming payments and rewards.

Designed to work with SuiPlay, Game Dollar is supposed to power what is being heralded as the upcoming seamless transaction experience players will have within that ecosystem.

Further adding to the excitement, the SuiPlay0X1 portable gaming console has already sold out in the pre-order stage, an indication of the enormous appetite for not just Web3 gaming, but the kind of dedicated hardware that lets you experience it. Software infrastructure, stablecoin plumbing, and purpose-built devices are bringing us the next generation of gaming on the blockchain. And all of these elements are present in SuiPlay.

The GameFi industry has undergone a revolution this second week of May. Outmoded types of earning games, such as tap-to-earn, are on their way out. Fresh (and sometimes even astonishing) types of gameplay are being invented, and institutional-level partnerships are starting to define the space. The sector certainly seems to be thriving, or at least one hopes it is, because quality gameplay, usability, and a long-term vision for the sector seem to be the roots of the new era of GameFi that supposedly started last week.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!