If you’ve heard of games like Axie Infinity, Gala Games, or Wreck League—or you’ve even played them yourself to make some extra income—then you’ve been properly introduced to the world of crypto gaming (aka, play-to-earn games).
For the uninitiated, developers build play-to-earn (P2E) games on the blockchain. They allow players to earn crypto while gaming or doing other activities that bring them some form of reward.
P2E games come in different versions. There are mining browsers, arcade games (like Axie Infinity), as well as easter egg game hunts. The fusion is between crypto and games.
Players are usually attracted to P2E games because of the glowing rewards they offer, and over time, the industry has grown into a multi-billion dollar market.
Beyond the rewards, crypto gaming is an easier way to own crypto instead of mining. It is one of the fastest ways to earn crypto without paying money for it. How did crypto gaming evolve?
The Crypto Gaming Industry
The crypto gaming industry is a $187.7 billion market. It started gaining attention with games like CryptoKitties in 2017, where players could breed and sell virtual cats on the Ethereum blockchain.
Since then, player-mode games have popularised “play-to-earn” models, where players earn real money by playing.
The industry is growing as developers explore new ways to merge gaming with blockchain, but challenges like high costs and technical complexity remain.
Traditional Games Vs Play-to-Earn Games in Crypto
In the crypto gaming market, aside from P2E, there are also traditional gaming projects. Traditional gaming introduced the concept of earning rewards long before blockchain.
Games like World of Warcraft and Runescape allowed players to collect in-game gold, items, or achievements that could sometimes be sold for real money through unofficial marketplaces.
Arcade games also rewarded players with tangible tokens or tickets, which could be exchanged for prizes in gaming centres.
However, these systems were often centralised—game developers controlled the economy, and players didn’t truly “own” their rewards.
Items could be lost forever if a game shuts down or accounts are banned. Crypto gaming (aka, play-to-earn games) builds on this idea but uses blockchain to give players verified ownership and a marketplace for trading items freely.
Overview of the Play-to-Earn Model
On the other hand, P2E games allow players to generate real-world value through gameplay. Examples of Popular P2E Games
- Axie Infinity: Players breed and battle creatures called Axies, earning tokens that can be traded for real money. The Sandbox: A virtual world where users can create, own, and monetize their gaming experiences using NFTs for land and assets.
- Gods Unchained: A trading card game that allows players to own and trade their cards as NFTs.
In-Game Cryptocurrencies and Tokens
While some P2E games allow you to play and earn crypto like Bitcoin, Ether, or even Solana, others allow you to mine tokens created for special tokens.
When you mine these tokens—and they eventually list on exchanges—you can sell them for real monetary value. Some blockchain projects use this as an airdrop activity.
For example, in 2024, crypto projects like Hamster, TapSwap, and Blum were “tapping” airdrop games that allowed you to stack up those project tokens before they launched. If the value of those tokens increases, your holding also increases with it.
Many games now introduce their own cryptocurrencies or tokens as in-game currency, allowing players to earn, spend, and trade these assets within the game ecosystem.
Benefits of In-Game Tokens
In-game tokens improve game engagement by allowing players to trade assets for real monetary value.
Tokens are traded on decentralised exchanges. This allows the players to cash out or reinvest. For example, Notcoin, Dogs, and Catizen are emerging tokens that offer unique gaming experiences while integrating with broader crypto markets. These platforms exemplify how in-game currencies can create vibrant economies that benefit both players and developers.
Crypto-Based Virtual Worlds
- Decentraland: Users can purchase virtual land using the MANA token, enabling them to create and monetize their own experiences.
- The Sandbox: Players buy, sell, and build on virtual land using the SAND token, fostering a creative economy where users can develop games and applications.
Key Challenges at the Intersection of Gaming and Cryptocurrency
- Price Volatility: Fluctuating cryptocurrency values can affect in-game asset prices, creating uncertainty for players and developers.
- Regulatory Compliance: Evolving regulations complicate the integration of cryptocurrencies into gaming platforms, making it difficult to navigate legal frameworks.
- Technical Barriers: Issues like high transaction fees, scalability, and complex user interfaces hinder the seamless adoption of crypto in gaming.
- Security Risks: Crypto games are susceptible to hacks and fraud, necessitating robust security measures to protect player assets and data.
The Future of Gaming and Cryptocurrency
Crypto gaming is now massively popular. Crypto glory hunters are always on the hunt for the next best project—or just another excuse to slush their money. Whatever the phenomenon is not leaving us anytime soon as more blockchain projects will continue to adopt crypto gaming.
- Rise of P2E Games: Play-to-earn (P2E) models will proliferate, allowing players to earn real value through gameplay.
- NFT Collaborations: Expect increased partnerships between games and NFT platforms.
- Cross-Platform Asset Interoperability: Blockchain will facilitate asset transfers across different games.
What Companies Are Making These P2E Crypto Games?
Several companies are leading the development of Play-to-Earn (P2E) crypto games, using blockchain technology to reward players with cryptocurrencies or NFTs. Key players include:
- Sky Mavis: Creator of “Axie Infinity”, one of the most popular P2E games that allow players to earn tokens by battling creatures.
- Animoca Brands: Known for “The Sandbox” and investing in blockchain gaming studios worldwide.
- Gala Games: Focuses on creating decentralized games like Town Star, where players earn real rewards.
- Yield Guild Games (YGG): A gaming guild that helps players access P2E games by lending them in-game assets.
- Illuvium: A blockchain-based RPG where players earn by capturing and trading creatures.
The companies are shaping the future of crypto gaming by merging entertainment with decentralised finance (DeFi)
These companies are shaping the future of gaming by merging entertainment with decentralized finance (DeFi).
