NFT creates a new gaming business model
A Taiwan-based data analytics service provider has released a non-fungible token (NFT) market report for 2021-2022, which shows that NFTs combined with gaming have become a new business model. However, as the global crypto market falls, NFT transactions have also slowed down.
The Big Data Company used its public opinion analysis system for KEYPO to conduct a survey from January 1, 2021 to April 30, 2022 covering posts and Internet volumes on Facebook, YouTube, Instagram, news media, forums and more.
Using data from Nonfungible.com, the report shows that for global NFT sales in 2021, games accounted for the highest percentage (77%), followed by collectibles (16%), art (3%), utility NFTs (2% ), and metaverse related (2%). The percentage for games grew from 44% in 2020 to 77% in 2021. In terms of total transaction values, collectibles accounted for the highest percentage (48%), followed by games (30%), art (16%), utility NFTs (3%) and metaverse-related (3%).
Source: Nonfungible.com, compiled by DIGITIMES Asia, August 2022
Source: Nonfungible.com, compiled by DIGITIMES Asia, August 2022
Discussion about NFTs in Taiwan started to increase in November 2021 and peaked in January 2022. This increase was helped by influencers and celebrities joining the NFT circuit, plus the popularity of “The Bored Ape Yacht Club” (BAYC or Bored Ape) in the crypto world. After January, the popularity of NFTs dropped a bit, but the monthly averages are still higher than in 2021.
Prior to this increase (January 2021 to October 2021), NFT topics on the Taiwanese Internet contained keywords such as blockchain, virtual currency, or encryption. Most of the discussions were about the technical side and focused on the art category. As the discussions heated up, keywords like buy, collect and trade started to appear. Among them, the “games” category of NFTs emerged as one of the popular search terms. Many companies released mobile games that claimed to allow players to play to earn. This showed that NFTs and games have combined to form a new business model.
The three main marketing approaches of NFTs include increasing exposure, maintaining loyal customers and expanding existing groups. Adding metaverse elements and gaming experiences is one of the methods to retain customers. Combining NFTs with brand stories and crossing over into different fields can also provide access to different demographics.
However, the recent slowdown in the global crypto market has also affected NFT transactions. A report by Asia Financial in July pointed out that on OpenSEa, the largest NFT trading platform in the world, the monthly transaction value went from USD 2.6 billion in May to USD 700 million in June, far from the USD 5 billion recorded in early January. The average unit prices of NFTs also fell from USD 1,754 at the end of April to USD 412 at the end of June. Citing Nonfungible.com co-founder Gauthier Zuppinger, the report noted that the crypto bear market has clearly affected the NFT market.
