by Game Marketing Genie, on 05-Apr-2022 11:08:44
Due to the increasing trend of owning unique digital possessions such as music, videos, and pictures, the market for NFTs is expected to multiply. According to new market research by Global Market Estimates, the global non-fungible tokens market should expand at a rate of 185% from 2021 to 2026 - and gamers make up a big part of this growth!
More players are joining the crypto metaverse due to the rising consumer awareness of cryptocurrency, blockchain tech, and NFTs. Game developers looking to venture into game NFTs should consider these statistics for the future. It is not only big money at stake here but also a clear bird's eye view of what the new technology has in store.
Total sales involving a non-fungible token (NFT)
Since the beginning of 2022, the demand for NFTs has soared. According to data from The Block Research, NFT trading volume rose dramatically from $2.67 billion in December 2021 to $6.86 billion in January 2022. Overall transaction volume increased nearly thrice in less than a month, with the majority coming from the NFT platform LooksRare, a competitor to OpenSea.
Figure 1: NFTs saw an all-time high in January 2022. Source: The Block Crypto
NFT games rose to power due to the explosion in the popularity of NFTs and their mainstream success. Axie Infinity and CryptoKitties became trendy quickly, with the former capitalizing on the hype to grow. Axie Infinity now has a market capital of approximately $3 billion and sales of $1.1 billion, and has risen above its competitors to become the market's highest-grossing NFT game.
Most expensive game NFTs
As investors and collectors aspire to join in the newest blockchain craze, gaming NFTs are becoming increasingly popular – and some are paying high prices for them.
Angel - Axie Infinity
As we said before, Axie Infinity is the most influential NFT game. In the third quarter of 2021, it experienced a surge in trading activity, accounting for $2.08 billion of the total $2.3 billion in NFT game trading volume. That quarter alone accounted for 83% of the game's $2.5 billion in trade volume. The primary reason for this surge in interest is that users are earning real money, with some claiming to make up to $100 each day.
The Mystic Axie “Angel” was sold for 300 ETH (1.1 million USD). According to the most recent data available, the average price of an Axie is $45.68. Axie Infinity also has a constant supply of 60,907,500 coins and a net worth of $2,782,235,638.
Figure 2: Screenshot of total NFT sales and daily active users playing Axie Games. Source: Axie Infinity
Dragon - CryptoKitties
CryptoKitties is an Ethereum blockchain-based game that allows users to breed, trade, and sell digital cats. CryptoKitties was one of the first games to use blockchain technology for entertainment as a game. Each virtual cat has its DNA, much like actual cats, and its characteristics, known as 'cattributes,' may be passed on to progeny. According to Axiom Zen, the game's developers, each virtual cat is one-of-a-kind and cannot be duplicated or moved without the owner's consent. The sale of a CryptoKitty named “Dragon” for 600 ETH (around 1.3 million USD at the time, but this number has since increased) marked the most expensive in-app purchase to date. Wrapped Basic CryptoKitties were trading at $4.58 in USD on 14 March 2022.
Figure 3: “Dragon”, the Cryptokitty with a sale price of 600ETH. Source: Cryptokitties
Hyperion - Gods Unchained
Card games are a popular option for NFT projects since they fit well with the collectible nature of NFTs. Gods Unchained is undoubtedly one of the biggest. There are several NFTs inside the game, but just one sticks out clearly - Hyperion.
Hyperion is one of four Genesis Titans in Gods Unchained and is a rare, unique card (there is only one). It sold for 137 ETH, which was around $60k at the time of sale. It would cost more than half a million dollars now.
Figure 4: Screenshot of the Gods Unchained marketplace. Source: Gods Unchained
Demographics
Currently, the NFT market is relatively fragmented, but the below statistics give an idea of the kind of people making up the bulk of this new financial era.
Age groups most likely to buy game NFTs
Millennials are the most likely demographic to purchase NFTs. 42% report doing so, compared to 37% for Gen X, 29% for baby boomers, and 20% for Gen Z. However, it's challenging to know the actual statistics for GenZ because most studies exclude those under the age of 18, and nothing prevents them from purchasing NFTs. For instance, a 15-year-old boy paid $300 for a digital artwork that he later sold for $30,000 (both in ETH transactions).
Genders most likely to buy game NFTs
In mid-March of 2021, 2,200 people in the United States were polled by Finder about their interest in collecting NFTs. The study found that 15% of male respondents said they collected NFTs. Only 4% of female respondents, on the other hand, said that they collected NFTs. In addition, 4.6% of men and only 1.2% of women claim to own at least one NFT. The 3.3% point NFT gender disparity in America is more significant than the 2.7%-point worldwide gender gap.
Figure 5: Men are more interested in NFTs than women. Source: Finder
Esports fans are interested in this market
According to the same survey, e-sports lovers were the most interested in collecting NFTs. More than 20% said they were highly interested, while 35% said they were just vaguely interested. 29% said that a digital trading card or commemorative artwork released by their favorite club or athlete would pique their curiosity in game NFTs.
37% of self-identified video game enthusiasts also said that they'd be interested in NFTs. Esports fans show the most enthusiasm, with 58% indicating they have some level of interest in the market.
Minting and selling game NFTs
The interest in minting NFT has been steadily increasing. The hunt for the most economical way to create NFTs stems from the fact that developing an NFT art or crypto art on the Ethereum blockchain may provide attractive returns. The method through which your digital art or digital material becomes a part of the Ethereum blockchain is known as "NFT minting." The Ethereum blockchain's smart contracts store and host the majority of NFTs and NFT marketplaces. You incur a fee for minting, known as the "gas charge" or "Gwei," which is the cost of using the Ethereum network. This price ranges from $70 and $300, depending on the Ethereum network's or NFT platform's demand.
For those looking for free options for minting, some marketplaces such as Rarible give an opportunity known as Lazy Minting. However, you cannot make a sale with the free option. Binance and NiftyGateway give more cost-friendly options to mint NFTs. However, if you want a faster and better result with your digital artwork, a paid option will be a better choice. After all, you get the quality you are willing to pay for!
To begin selling an NFT, you must first "mint" one of your digital assets as an NFT. It becomes a form of the digital certificate generated on a blockchain network — commonly Ethereum — that ensures ownership of your work. Then you choose a marketplace, list your NFTs, and wait for a buyer to express interest.
Remember that the final selling price of your work is determined by subjective aspects like its creativity, originality, and reputation among potential clients. Unlike other hyped NFTs that sold for millions, yours may not hit the jackpot on the first go.
Popular marketplaces for minting and selling NFTs:
OpenSea
OpenSea is the world's first and largest NFT marketplace and the most cost-effective means to create NFT tokens. Users of OpenSea NFTs only have to pay minting or gas costs once when they generate NFTs and configure their collections. On OpenSea, you may sell NFTs in various ways, including at a fixed price, through an auction, or by establishing a falling price listing. OpenSea lets you buy NFTs with multiple cryptocurrencies, including ETH and DAI. Their fees, including minting and selling NFTs, are 2.5% of your final sales.
Rarible
Rarible is another great marketplace for minting. Rarible is the place to go if you want to sell NFTs focusing on art and photography. The Ethereum, Flow, and Tezos blockchains are all supported on the platform. Just like OpenSeas, it also charges 2.5% in fees. Rarible also allows you to sell single NFTs as well as entire collections.
SuperRare
All of the NFTs on SuperRare are tracked and fully encrypted. On SuperRare, all transactions occur in Ether. All transactions made on the platform charge sellers a 15% fee. A 3% marketplace charge occurs on top of the sale price on every transaction the buyer pays. That's a lot for most NFT marketplaces, but it's nothing compared to real-world art galleries, which SuperRare is attempting to imitate.
Seems too daunting?
We hope you now see why NFTs are such a great asset. It's a dynamic market that is constantly changing and pushing its boundaries. So, keep an eye on the most recent NFT statistics, follow the trends, and make intelligent investments. Conduct thorough research to not get stuck with anything.
For some of you, this can feel not very clear. Marketing a crypto game in a new industry prone to sudden developments or controversies is not an easy task. If you are interested in how you can effectively market your crypto game to NFT lovers, we have a complete guide on the topic. Read more here in The Top Crypto Game Marketing Guide.
Get started today!
Start early if you want to enter the gaming market to mint and sell your NFTs. You don't have to wait to market or promote your game concepts before the actual game is ready. With the exchanges in the industry, the games that have already made their head start, and the people waiting to get involved in NFTs, creating a strategy is the first thing to do. But you don't need to tackle this task alone. A game marketing agency can be your guide and support to channel your efforts in the right direction. Game Marketing Genie can add finesse to your marketing plans because of their expertise and experience in the game marketing niche.
