Gaming on the blockchain is still in its infancy, but the opportunity offered by the sprawling industry has many believing that it is the key to mass adoption of the emerging technology. Recent data shows just how large this market could become.
The global blockchain technology market is predicted to reach $339.5 million in size this year and is forecasted to grow to $2.3 billion by 2021. However, at the same time, it is estimated that the value of the virtual item market is currently at $70 billion with only 2.5% of the more than 2 billion gamers currently paying for virtual goods.
Estimates also show that the virtual item market is rife with fraud, with fraudulent item sales and chargebacks accounting for around 7 out of every 8 transactions, according to TechCrunch.
According to data provided by Host Games, a new gaming protocol for emerging markets, cryptocurrency and blockchain technology within the gaming industry could stand to gain significant market share, representing potentially billions in yearly revenue. For comparison, free-to-play Fortnite is currently earning its developers over $1.5 million a day from microtransactions.
As of June 2018, the top 10 blockchain gaming companies have raised a total of $360 million through token sales. Currently, there are 318 blockchain projects focused on gaming listed on ICO Bench.
However, more than 40% of blockchain games fall under the casino and gambling category. While the application makes sense, it will likely require a killer app within the traditional gaming industry to drive real adoption to tap into the ever-growing microtransaction market.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.