2021 has seen a new crypto phenomenon emerge, which is crypto gaming. Play-to-Earn games have become popular investment opportunities and combined with developments in the metaverse and its gaming side, GameFi crypto tokens have risen in popularity. These tokens have different uses depending on the project. Some are used as utility tokens, there are also governance tokens and tokens which are used as currency in the game.
This gives investors a new field to invest in. Many projects, of which Decentraland and The Sandbox are the biggest, have raised huge amounts of capital and amassed loyal communities. This is still the early stages of the GameFi ecosystem and there is still a lot of room for growth. This gives investors opportunities to invest in a new growing ecosystem with possibilities of huge returns. But which GameFi tokens are worth investing in?
GameFi is a blockchain gaming ecosystem where players receive financial incentives for playing different blockchain games. It is more commonly referred to as Play-2-Earn (P2E) games. Rewards in these games are given in the form of cryptocurrencies and most of these tokens are native to the project. To receive these rewards players have to complete different tasks which differ from game to game. These tokens have different utilities, some are used as in-game currencies, some hold governance rights, and many more.
But when investing in these GameFi projects and their tokens, investors are not limited to only investing in individual projects and tokens. Metaverse developments have created many different metaverses which are used by different projects to build games inside their metaverse. This gives investors the opportunity to invest in metaverses as well if they believe in GameFi's future.
"Play to earn games or like metaverse games would be like
a world where people can like maybe dream in and get like
interesting kind of opportunities from them" - Trung Nguyen
Decentraland is one of the biggest metaverse platforms in the world. This platform gives developers many possibilities to build their own projects within the metaverse and attract users.
MANA is the native token of Decentraland. This token is used as the currency on the platform and facilitates different transactions. It can be used to purchase land plots on the platform, vote on upcoming changes, and so on.
Decentraland implements Decentralized Autonomous Organization (DAO) to make decisions regarding the platform. Those who hold MANA are the ones who control the platform. They vote on how the platform should work, how land auctions should be run, and what types of projects should be allowed within Decentraland.
Currently, MANA trades for $0.55 with a market capitalization of $1.2 billion. It is the 41st crypto by market cap.
Following Decentraland, The Sandbox is another metaverse platform with P2E mechanisms being implemented. This metaverse consists of digital land plots called LAND. This platform gives developers the option to use NFTs and trade with SAND, the native currency of The Sandbox.
The Sandbox provides players with many different instruments. The Sandbox Game Maker allows digital assets made by players to be turned into NFTs and incorporated into the game. There are also different instruments that give developers opportunities to build their 3D games and different objects.
Atari, one of the biggest and oldest game development companies, has worked with The Sandbox and developed virtual theme parks on its platform. In total there are 166,464 LAND plots available for purchase. Prices for these plots can go high as each day new developers are joining the platform to develop their games.
Currently, SAND trades for $0.69 with a market capitalization of $1.37 billion, which puts it just above Decentraland as the 39th largest crypto by market cap.
Lucky Blocks is a crypto game that aims to become a decentralized lottery platform. Built on the Binance Smart Chain, this project allows players to participate in lotteries and earn different kinds of rewards. They use their own GameFi crypto token called LBLOCK.
The initial release of LBLOCK happened in January 2022 and is available for purchase through many different crypto exchanges. LBLOCK tokens are used to purchase tickets for lottery draws. Also, those who hold LBLOCK tokens receive one free ticket each day if they connect their wallet to the platform.
Lucky Blocks might not be as big and well-established as some other GameFi projects mentioned in this list. But it is in the early stages of development. Investors should have this project on their radars as the room for growth is there.
Currently, LBLOCK trades for $0.001 with a market capitalization of $38.2 million.
Gala is another GameFi platform that has gained the interest of investors. This blockchain-based game platform rewards users with GALA coins for completing different tasks and challenges. The GALA coin can be used as in-game currency to purchase NFTs, it can also be traded on different exchanges for other cryptos and fiat currencies.
Gala developers do not hold complete control over the project. Players have the ability to vote on different aspects of the project. Players can choose which road the Gala should take, what kinds of games should be added to the Gala network, and much more. There are many different games that are built on the Gala network, so anyone should be able to find something they like.
Currently, GALA trades for $0.052 with a market capitalization of $393 million.
Bored Apes Yacht Club is behind ApeCoin. Developed by the biggest NFT project, APE should be an investment opportunity investors should not miss out on. Bored Ape Yacht Club is an NFT project which encompasses many different NFT collections and even their own metaverse.
ApeCoin holders can utilize the token in many different ways. This GameFi token gives voting rights to holders for decisions made within the BAYC network. Holders can also receive different rewards for upcoming collections.
ApeCoin will have a usage in BAYC's upcoming metaverse called Otherside, where they plan on building virtual real estate land and making them available for purchase.
Currently, ApeCoin trades for $4.44 with a market capitalization of $1.3 billion. Ranked as the 39th largest crypto.
Enjin is an interesting GameFi platform, that offers developers software development kits to create NFTs and other digital assets within their platform. This is really secure crypto as its native token Enjin is locked in a smart contract to ensure its value and make it one of the biggest GameFi tokens.
It has a really long road map with upcoming improvements and will be alpha testing two upcoming projects soon. Enjin will also be securely testing their upcoming Wallet 2.0. They plan on creating this native wallet to make the trading process of digital assets and NFTs fast and reliable. This development roadmap gives many investors a great tool to decide if it is worth investing in them.
Currently, Enjin trades for $0.49 with a market capitalization of $360 million. It ranks 90th biggest token by market cap and is something investors should consider when deciding to invest in GameFi.
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Enjin coin is locked in a smart contract which gives it value in the real world. For those investors who prioritize security, investing in the Enjin coin would be a great opportunity.
Most crypto games offer crypto rewards when playing their game. These rewards are usually in the form of their native token. There are some games that also offer NFT rewards.
GameFi tokens are cryptocurrencies that are associated with games built on blockchain. These games are also referred to as Play-2-Earn games. They can have different powers in different projects. They could be used as in-game currencies, hold governance rights, and many more.
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