The beginning of NFT games
The first NFT game was Cryptokitties, which was launched in 2017 by Axiom Zen. The game allowed users to collect, breed, and sell unique digital cats on the Ethereum blockchain. The game quickly gained popularity, with some rare kitties selling for thousands of dollars at auction.
Cryptokitties’ success paved the way for other NFT games to enter the market. In 2018, the first-ever play-to-earn game, CryptoKitty Collector, was launched on the EOS blockchain. The game allowed players to collect and trade digital cats that could be used to breed new ones or sold for cryptocurrency.
In 2019, another NFT game called Rare Digital Items (RDI) was launched on the Ethereum blockchain. The game allowed users to buy and sell rare digital items such as weapons, hats, and other in-game objects. The game quickly gained traction, with some rare items selling for tens of thousands of dollars at auction.
The challenges faced by NFT games
Despite the initial success of NFT games, they faced several challenges that slowed down their growth. One of the biggest challenges was scalability. NFT games require a lot of computational power and bandwidth to function properly. This led to high gas fees and slow transaction times, which turned off many potential players.
Another challenge was the lack of standardization in the NFT market. There were no clear guidelines or protocols for creating and trading NFTs, which made it difficult for developers to create games that could interoperate with each other. This also made it challenging for users to buy and sell NFTs across different platforms.
The rise of decentralized finance (DeFi) also had an impact on the NFT market. DeFi applications such as DApps and smart contracts offered users a way to trade NFTs without relying on centralized exchanges. This led to increased competition and fragmentation in the NFT market, making it harder for NFT games to gain traction.
The impact of COVID-19 on NFT games
The COVID-19 pandemic also had a significant impact on the NFT market, including NFT games. With many people spending more time at home, there was an increase in demand for online gaming and entertainment. This led to a surge in the popularity of NFT games, as users looked for new and exciting ways to spend their time.
In 2021, several high-profile NFT games were launched, including Axie Infinity, which raised over $1 billion in funding through an initial coin offering (ICO). Another popular game, CryptoKitties, was relaunched as a new game called Cryptokitties Kittens, which quickly gained traction among users.
The decline of NFT games
Despite the initial success of NFT games, their popularity began to wane in 2021. The hype surrounding NFTs started to die down, and the market saw a significant correction in prices. This led to a decline in demand for NFT games, as users started to lose interest in collecting and trading digital assets.
