RON, IMX, BEAM: Beyond Play-to-Earn
An In-Depth Analysis of Crypto Gaming's Evolution and Its Major Players
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In an era where the fusion of gaming and finance (GameFi) is a reality, the sector emerged seemingly at the forefront of a technological revolution. Axie Infinity, the pioneer of GameFi, exemplified this boom with over 2.8 million daily active users (DAU) and a fully diluted valuation of over $44 billion at its peak between November 2021 and January 2022.
However, the sustainability of Axie Infinity’s model soon came into question. Its in-game token SLP became excessively inflationary due to a disproportionate mint-to-burn ratio, driven largely by speculative activity. This imbalance led to a significant downturn in its in-game economy and token value.
This trend was not isolated to Axie Infinity. Many GameFi projects, attempting to replicate its success, encountered similar challenges. The fundamental premise of GameFi began to show cracks, and since the 2021 peak, which saw over $2.3 billion raised, the sector has struggled to meet its initial promise.
Amidst these challenges, the past year has seen a notable shift. Major players in the crypto gaming space are reorienting their strategies. Rather than solely focusing on the 'GameFi' aspect, they are investing in comprehensive game development, forming alliances with traditional gaming giants, and building robust infrastructures, including marketplaces for gaming and in-game content, and social platforms. Central to this resurgence are three networks: Ronin Network (RON), ImmutableX (IMX), and Merit Circle (MC).
This report delves into the evolving landscape of crypto gaming, guided by the developments in these three networks. It examines their technological advancements, development trends, and critically assesses the sustainability and future potential of the sector.
Disclosure: The author is long RON and BEAM.