The fundamentals of play-to-earn: getting started and potential earnings

The crypto industry is booming, and one area that is experiencing significant growth is the play-to-earn (P2E) games sector. These games provide players with the opportunity to earn real cryptocurrency rewards while enjoying traditional gaming experiences. As the global video games market continues to expand, reaching projected revenues of $282.30 billion by 2024, P2E games are gaining attention as a lucrative avenue.

China is expected to be a major contributor to this growth, with projected revenues of $94.4 billion for this year alone. The market is anticipated to sustain this momentum, with an annual growth rate of 8.76%, reaching an astonishing $363.20 billion by 2027.

However, the entry point into these games can vary depending on the title. For example, Axie Infinity (AXS), a leading player in the P2E space, requires players to invest in at least three Axies, which can be priced anywhere from $2 to several thousand dollars each. On the other hand, games like Decentraland (MANA) offer a more accessible starting point, where players can begin their journey with a MetaMask wallet, although additional investments in virtual assets like the MANA coin may be necessary to access certain features.

When considering potential earnings from P2E games, it is essential to understand that they can fluctuate. Factors such as token value and player engagement can impact the amount you can earn. For instance, community reports suggest that the average daily earning potential within Axie Infinity is around $1. Additionally, the secondary market for in-game assets, particularly non-fungible tokens (NFTs), presents players with an opportunity for additional revenue streams, as seen in Decentraland’s success in NFT sales.

Let’s take a closer look at the top performers in the P2E market based on the last 30 days of data:

1. motoDEX: This P2E game operates on a multi-chain model and has seen a 35.6% increase in unique active wallets (UAW) and a surge of 512.91% in transaction volume, totaling 8.31 million transactions.

2. Sweat Economy: Available on both Ethereum and Near chains, Sweat Economy experienced a modest uptick of 2.56% in UAW on the Ethereum version and a 4.42% increase on the Near-hosted counterpart, with a total of 6.49 million transactions.

3. Trickshot Blitz: Running on the Flow blockchain, Trickshot Blitz holds the third spot but faces challenges with a 17.93% decrease in UAW and declining transaction volumes over the past 30 days.

4. PlayEmber: Present on both Ethereum and Near chains, PlayEmber saw a decline of 20.87% in UAW on the Ethereum-based activity and a 35.38% decrease on the Near-based activity over the last month.

5. Pixels: Securing the fifth position, Pixels operates on Ethereum and Ronin chains. Ethereum-based activity saw a surge of 137.35% in UAW, while Ronin witnessed a 31.94% increase in user engagement. Additionally, transaction volumes on Ronin skyrocketed by over 3,000%.

To make money from P2E games in 2024, it is crucial to stay informed about market trends, choose the right games, and manage your assets wisely. Here’s what you can do:

1. Select the right games: Prominent examples of P2E games that have yielded high returns for early investors include Decentraland, The Sandbox (SAND), and Axie Infinity. MotoDEX, Sweat Economy, and Pixels stand out based on their growth in unique active wallets and transaction volumes.

2. Focus on games with high reputation and popularity, as well as a large user base and transaction volume. These factors indicate an engaged community, which is crucial for potential earnings. Diversify your investments across different blockchains and game genres to mitigate risks associated with token volatility and changes in game popularity.

3. Implement earning strategies such as active participation in gameplay, challenges, and community events. Asset flipping on secondary markets can be lucrative, especially for valuable in-game assets. Staking and investment mechanisms offered by some P2E games can provide a passive income stream. Joining a guild can provide access to premium game assets and learning opportunities.

To calculate profitability and make informed decisions, consider factors such as return on investment (ROI), market analysis, and community engagement. Calculating your break-even point and analyzing market trends and community sentiment can help you maximize your earnings potential.

In 2023, the blockchain gaming sector experienced both challenges and successes. Over 30% of announced blockchain-based games were canceled or discontinued, highlighting project attrition within the industry. However, investments in blockchain gaming still totaled $2.9 billion across 163 deals, with Asia emerging as a prominent hub for new game development.

WAX emerged as a standout gaming blockchain, attracting over 3 million new wallets and processing 4.7 billion gaming transactions. In-game NFT markets also saw significant activity, with platforms like Gods Unchained and Ethereum leading in trading volumes.

In conclusion, prioritize games with established popularity and engaged communities, stay informed about market trends, and approach P2E gaming as a long-term investment. Exercise caution and diligence in your decisions, and remember that this article does not constitute investment advice.