GameFi in Africa: Top Trends and Market Potential

GameFi is the new gold

GameFi has overtaken DeFi as the hottest sector in the crypto market. Here is why;

What is GameFi?

Put simply, GameFi is the culmination of Decentralized Finance (DeFi), Non-fungible Tokens (NFTs) and crypto tokenomics, packaged into an interactive, enjoyable financial product. A term commonly associated with GameFi is ‘Play-to-Earn’ (P2E), which is exactly what it sounds like: a business model in which players are rewarded with cryptocurrency for progressing through the game and contributing to the entire ecosystem.

P2E enhanced with crypto

This P2E model combines two activities that historically drive consumers towards platforms or activities: Having fun and making money.

There is however a huge advantage that cryptocurrency offers in terms of the autonomy of game items, open decentralized marketplaces, and the ability of players to influence what happens in the gaming environment.

NFT, Metaverse, and GameFi

GameFi revolutionary idea is enhanced by allowing users to outrightly own in-game assets as NFTs. In-game characters, outfits, land, and weapons are all examples of NFTs that can be taken out of the gaming environment and traded with other players, sold on cryptocurrency marketplaces, or stored in a digital wallet for speculative investing. This is the same principle that underpins the Web3 metaverse economies, and many metaverses are also considered to fall under the GameFi umbrella.

Africa is the ideal launchpad for GameFi

Emerging economies are in a position to benefit the most from the inevitable tidal wave of GameFi projects entering mainstream markets. Africa in particular shows promise in this sector. It has one of the youngest populations, with rising levels of digital literacy and rapid adoption in the use of mobile phones.

Top GameFi trends

While each game is unique, there are some common trends within GameFi that many projects follow. There are four primary ways for gamers to earn money while playing their favourite games:

Will GameFi become an even bigger deal than it already is?

Yes, indeed! By 2026, the gaming industry is expected to be worth an astounding $314 billion, nearly doubling its current value of $173.7 billion in 2020. P2E gaming titles already own a sizable portion of this, with the total P2E market cap hovering around $20 billion as of February 2022. This phenomenal growth will be fueled by gamers in all markets, although Africans appear to be playing an increasingly important role in GameFi adoption.

GameFi is here to stay

GameFi and Play-to-Earn (P2E) markets are maturing rapidly, showing real value to their ever-growing communities of users. It’s clear these markets are here to stay, and will likely play an important role in accelerating blockchain adoption in Africa and around the world.

Launch with Adaverse

Having close ties to some of the biggest names in GameFi and traditional gaming, Adaverse is a Cardano ecosystem accelerator committed to helping the next generation of African game developers make their mark on global markets. We assist startups to establish and grow sustainable businesses on the continent, through funding and a mentorship program.

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Adaverse Accelerator

Adaverse Accelerator

Adaverse is a Cardano Ecosystem Accelerator that aggregates entrepreneurs, strategists and mentors building its most robust foundation in Africa.