Blockchain gaming market to reach $65.7 billion by 2027, reports state

A recently released report by MarketsandMarkets, a revenue impact analytics and advisory firm, predicts that the global blockchain gaming market is bound to reach $65.7 billion by 2027. Today, we’ll bring you the key takeaways outlined in the report.

Rapid growth in the crypto market is expected in 5 years

According to the Blockchain Gaming Market report, the current market cap is about $4.6 billion, far short of what the future potential is likely to be. It is expected to grow at a CAGR of 70.3% over the next five years. Presumably, BNB Chain’s growth will be the fastest in the period 2022-2027.

Increase in funding as the most important driving force

But what are the most important driving forces behind market growth? The report identified the key factor: a general increase in funding and investment in blockchain games. This is good news for those who fancy the idea of ​​earning with crypto, as the play-to-earn model continues to attract the attention of many crypto players. At the same time, an increasing number of people are comfortable investing in and managing their NFTs.

Ethereum is the leading crypto market segment.

As for what the fastest growing segment of the crypto market is likely to be, the report predicts that the crown will go to Ethereum. There are actually many games to earn crypto projects that use their blockchain to reward their players, with some examples including My Crypto Heroes, The Sandbox, CryptoKitties, and Gods Unchained. All of these are likely to play a role in market growth.

The Asia Pacific region emerges as the winner in market size.

Regionally, it looks like the Asia-Pacific region will be the one to look out for. The report estimates that it is likely to emerge as the winner in terms of market size. There are an estimated three billion gamers around the world, and half of them live in the Asia-Pacific region. Based on this, the report identified this region as an emerging blockchain gaming hub with rapid growth potential.

The shift from traditional to blockchain games

Even outside the region, the authors of the report observe a shift from traditional gaming enthusiasts moving to blockchain-based games. In traditional video games, as we know them, all items that are acquired, be it elixir, gold, weapons or the like, are centralized and thus linked to the user account. Blockchain games turn the concept on its head because these digital assets become NFTs. As such, they gain salable value and players are free to take them outside of the game and trade or sell them.

Any blockchain game that allows players to earn these NFTs or cryptocurrencies is called a game to earn (or P2E for short). In some cases, an NFT can even be a character that players develop or customize over time, or it can provide immediate gameplay benefits, such as a plot. Unlike traditional video games, these NFTs are not locked to the server; rather, they have been safely tucked away in the player’s wallet.

The upcoming regulatory challenges

Since concepts like NFT and P2E are still relatively new, regulators are trying to figure out how to classify them and tax them accordingly if necessary. If they decide to classify them as assets, we could see taxes imposed on each transfer that could go as high as 30%. This may have the potential to drive many players out of the market.