Top gaming cryptocurrencies to invest in 2024, and the future of crypto gaming

 

In the beginning of 2017 when i finally began investing in cryptocurrencies, the market was a thrill and everything seemed to be the next big thing. Ethereum (ETH), Bitcoin (BTC) and Litecoin(LTC) dominated the space with Ripple (XRP) and other altcoins following suit, vowing investors with credible growth prospects and massive capital gains as proof. But this was just the beginning of something even greater to come.

They are more people playing video games on PC at any given time then they are people mining cryptocurrencies using the same system hardware that gamer uses such as powerful CPU’s and fast GPU’s (Graphics cards). This insight alone would make many corporations and game developers be awe inspired by gaming tokens and their potential to disrupt the gaming industry. In this article i will explain as simply as i can what gaming cryptocurrencies are and my insights into what i believe is the future of gaming and gaming cryptocurrencies, finally i will mention my top picks for investing. May this article be a guide for future investors.

What are gaming cryptocurrencies or Gamefi?

A gaming cryptocurrency or token is simply a unit of value on the blockchain that can be mined or received by buying the token from an exchange, playing a game, purchasing a game, or using the cryptocurrency to stake against other players i.e P2E (Play to earn). Gamefi (short for gamification) coins today are interlinked with the purchase and mint of in game NFT’s (Non Fungible tokens). In-game NFT’s are virtual in game items that are 100% unique and cannot be replicated , they allow people to express individuality, personalization, and ownership within the game or the gaming platforms community. This opens many opportunities for people who play video games to sell in game items they received while traversing through fantasy laden landscapes or beating the opponents rooster of champions at a match on their smartphone.

Presently they are over 400 Gaming cryptocurrencies and tokens with an active trading volume on crypto exchanges exceeding $1.6 Billion with a whopping $19.7 Billion in combined market capitalization. These include gaming platform tokens or Gamefi and Game tokens. Some top names in this space that are among the top 100 cryptocurrencies are Axie Infinity (AXS) Immutable(IMX) , Floki (FLOKI) , The SandBox (SAND) , Ronin (RON) a notable mention is NakamotoGames (NAKA) possibly named after Bitcoin creators namesake Satoshi Nakamoto.

What is the difference between a gaming platform token and an in game token?

A gaming platform token is a cryptocurrency on the blockchain that enables game designers to create games with easy integration of the gaming platform cryptocurrency, i.e Game designers do not have to build a cryptocurrency ground up and focus solely on creating a beautiful game.

Gaming cryptocurrencies can also be a larger game developers in-house coin that allows gamers to purchase the cryptocurrency of exchanges and use it to purchase in game items and services, staking their cryptocurrency or even using the cryptocurrency to place bets against the opponents team in a staked, victor takes all match. Other methods of earning this cryptocurrency might include leasing in game NFT’s to other players, i.e Leasing a massive spaceship (Inside the game) to a player that presently cannot afford one.

The Future of Gaming and Gaming Cryptocurrencies

To begin indulging you on a journey into the future as i see it, i will begin by explaining the present groundwork in cryptocurrencies so that the reader can visualize with me the future of gaming cryptocurrencies that might change the lives of future gamers forever.

Presently they are two popular ways in which cryptocurrencies are mined, Proof of work and Proof of stake. Proof of work requires a computers processor CPU or popularly a graphics card GPU to solve an algorithmic math problem and get rewarded for verifying the validity of transactions on the blockchain in the process. Miners get paid straight to their respective wallets. Bitcoin is the ultimate example of proof of work. The CPU and GPU are the same exact components that are used by game programs to run games.

On the other hand there is Proof of Stake, where someone who owns a cryptocurrency can stake or in other words lock their cryptocurrency into a virtual vault that helps the servers function while securing the network and validating transactions. Proof of stake requires either individuals to manually verify transactions or a program automates it for them. In gaming there is a common practice of idle time mining in game i.e Leaving the “computer on” with the game running overnight to collect a resource available only by being online running both CPU and GPU in the background of the PC or directly mining resources popularly called resource farming i.e the weapon that needs be forged in game needs 100x iron which requires the player to travel great in game distances and collect iron of their fallen enemies.

Shooting two targets with one rock

In the future it might be possible for game developers to create games that integrate both a functioning mining program that also makes the game function. Players switch on their PC, run the game and voila we have a functioning miner that mines the cryptocurrency in the background for the game protocols network while allowing the player to enjoy the majesty and thrill of playing a video game at the same time. During idle time the player could be rewarded for leaving the PC or mobile on while connected to the blockchain network so that the player not only mines but also sells NFT’s on an in game marketplace shop that the player curates, this also opens doors for the greater virtual meta verse.

Procedurally generated games, disk space and mining

No Mans Sky a marvelous procedurally generated game developed by Hello Games with infinite space exploration possibilities is a fantastic example of where mining a cryptocurrency by leasing disk space to other players or the game network can reward players for virtual space exploration. Games with vast open worlds require players to store all their discovered areas within the game on their hard disk. This causes a problem firstly no one can have enough disk or data space to store data of a game that is infinitely growing in virtual space, secondly every player would need to store their own version of the same explored virtual space. By leasing data space to the network, players helps secure the game network while making it easy for other players to traverse and explore great distances without glitches, and loading times.

During all this the game could also enable cryptocurrency mining in the background, this allows the possibility of game developers to create games that integrate separate cryptocurrencies for mining in the background and proof of stake for specific in game task such as leasing data, NFT’s and other in-game resources. If the developers of No Mans Sky would have had its own cryptocurrency, today they would not only have had their own bubbling crypto ecosystem upon which they could have built their incoming title Light No Fire , but would have also made Hello Games amass a market capitalization of billions of dollars within the cryptocurrency industry if not trillions in the future.

Proof of stake can be used to disrupt old economic in game walled gardens. What are these walled gardens? — Areas within gaming that could have been monetized before but could not be monetized due to the absence of a cryptocurrency. Ronin, Nakamoto Games, Axie Infinity, Volt Inu , Reef Protocol are some cryptocurrencies that are trying break these walled gardens.

Proof of Victory

Proof of victory is a simple concept that requires a smart contract. The winning team or players victory upon meeting certain in game objectives needs to be validated so that the staked reward can be sent out to the player or teams wallet. This is similar to P2E where the two or multiple players fight over the reward for a staked pool of a cryptocurrency receiving the rewards based upon ranked victory. If one thinks about it this would be similar to mining pools, where computers do the same but without the user playing a game.

Proof of Victory has allot of possibilities, i.e the developer can reward players for completing the campaign, meeting community objectives to receive the staked rewards, but most importantly be involved in confirming with proof of whether a player or a group of players actually won meeting set conditions without cheating, spoofing or DOS attacking the game to its knees. This both enables gaming network security and allows gamers to be certain of authentic and audited results at the leader boards garnering excitement and competitive spirit.

Virtual Land and High utility NFT’s

There are thousands of games with large if not planet sized virtual space, both land, air and oceans. Elder Scrolls Skyrim a memorable and still popular dragon slayer title combined an immersive story, detailed character creation and vast fantasy world that encompassed both land, air and sea. Elder Scrolls was also a game that allowed players to own their own house at a later expansion. This was the beginning of something new, players would collect gold and buy their own mansion and indulge themselves in the cosmic role-play of actually living in another world. This made me wonder how long before Virtual land in multiplayer games that are popular become a tradable asset on the blockchain based solely on the fundamentals of economics:

1. Scarcity- Limited amount of land in a game.
2. Need/Desire- Requirement in game or desire to own land that could gain in capital value against a cryptocurrency based on future demand from players.
3. Demand/Supply- Demand side pressure on virtual land inside games coming from newer players.
4. Capital Gains- Assuming the land inside a virtual reality is on the blockchain. Demand for this virtual land would only increase with greater number of players. Newer players would buy land in areas they can access from older players that have by then explored far of areas into the game and need to sell the previously owned land to explore further. This makes sense when thinking of planet sized space exploration games like No Mans Sky. A game in which incumbent players have more resources to travel further distances into space and could lease / rent or sell previously owned planets, or land on planets to newer players that would need the virtual land at that stage in their gaming journey.

These same fundamentals apply to high utility NFT’s that could represent high value items inside a game. Owning the NFT could unlock access to a massive ship, resource mining equipment, a powerful armor, a rare weapon, or even access to undiscovered regions in the game. Scarcity in these resources could stem from these items being in limited amount with a fixed supply, making them highly sought after. Time spent playing the game would reward the players with financial earnings and euphoria of being part of a parallel economic system.

I will leave it to the reader now to ponder upon the possibilities that are there in gamification and move onto the section where i let my readers know which are my favorite gaming cryptocurrencies AS I BELIEVE THEY ARE TRULY UNDERVALUED AND MIGHT MAKE IT TO THE CoinMarketCap TOP 100 THROUGH 100X CAPITAL GAINS.

Disclaimer: this is not financial advice, please invest at your own risk and do your own research.

NakamotoGames (NAKA)- Named after Bitcoins pseudonymous creator Satoshi Nakamoto, this gaming platform is presently solely focused on creating world class games both for smartphones and web that enable players to play to earn (P2E) . P2E prize money with leader-boards and player vs player P2E are both in its focus with an active and large community , some big name backers, and a partnership with apple.

HighStreet — HIGH Token (Highstreet) is a native token of a decentralized commerce-centric play-to-earn metaverse built with virtual reality (VR) support. Apart from realizing a two-way currency flow within physical and virtual worlds, Highstreet (HIGH) introduces a market where in-game items can be redeemed for real-life products. During gameplay, users have an opportunity to explore the metaverse, fight monsters and complete quests all the while acquiring goods that have both digital and real-world utility. HighStreet also has one of the highest monthly volumes in its segments with an engaging community.

Axie Infinity is a blockchain-based trading and battling game that is partially owned and operated by its players. To learn more about this project, check out our deep dive of Axie Infinity.

Inspired by popular games like Pokémon and Tamagotchi, Axie Infinity allows players to collect, breed, raise, battle and trade token-based creatures known as Axies. Each Axie is a non-fungible token (NFT) with different attributes and strengths and can be entered into 3v3 battles. The Axie Infinity ecosystem also has its own unique governance token, known as Axie Infinity Shards (AXS). Axie Infinity has been a popular P2E game that is among the top 100 cryptocurrencies.

Volt Inu ($VOLT) is a highly deflationary token on the Ethereum blockchain that keeps growing through the use of true deflationary techniques and additional revenue generation. Volt Inu has published two First Person shooter Games on Steam, the popular game marketplace.

In addition to the classic revenue streams such as: Blue chip NFTs — Stablecoin staking — Big and medium cap altcoins — Yield farms, $VOLT will generate passive income that will benefit all hodlers through NFTs fractionalization that will be distributed to top holders and through the acquisition of nodes that will allow for continuous revenue generation to be funneled back into $VOLT.

Ronin is an EVM blockchain specifically forged for gaming. Launched by Sky Mavis, the creator of Web3’s breakout title Axie Infinity which has generated over $1.3B in revenue, Ronin is the only blockchain proven to scale a single game to accommodate millions of daily active users and has processed over $4B in NFT volumes. Ronin optimizes for near-instant transactions and negligible fees that enable millions of in-game transactions to occur seamlessly, making it the leading choice for Web3 games.

Reef is a Reliable Extensible Efficient Fast Layer-1 Blockchain for DeFi, NFT & Gaming. Built using Substrate Framework, it provides high scalability, enabling almost instant low-cost transactions, and supports Solidity and EVM, allowing developers to seamlessly migrate their DApps from Ethereum without any change in the codebase.

Reef Chain is the most advanced EVM-compatible blockchain.

Gala is a web3 ecosystem powered by a layer-1 blockchain (GalaChain) built to power the Gala entertainment ecosystem that originally included Gala Games, Gala Music and Gala Film. More recently however, GalaChain has opened its doors to external developers and projects from any applicable industry, providing open source developer resources to simplify the process.

Chromia (CHR) is a modular, relational blockchain platform that aims to make it easy for people to build decentralized applications (DApps). It was founded by ChromaWay, a company that has been working on blockchain solutions since 2014 for various sectors such as finance, real estate, gaming and public services. ChromaWay is also known for creating colored coins, which are user-defined assets on a blockchain that can represent anything from currencies to stoc (Galaks to collectibles.

Mines of Dalarnia (DAR) is an action-adventure game with a blockchain real-estate market. MoD is based on a simple and simultaneously captivating gameplay, where users can mine and combine in-game items, then utilize them to upgrade their characters (skills and equipment), thereby increasing their rank in the game. Players can go in search of rare artifacts / relics / minerals, complete quests, team up with other players to defeat monsters and unlock rewards.

Yield Guild Games (YGG) is the world’s first and biggest web3 gaming guild where players can find their community, discover games and level up together. Its mission is to become the leading community-based user acquisition platform in web3 gaming.

As a network of gaming guilds focused on web3 games, YGG is committed to providing opportunities for its members to achieve success in web3 gaming through questing initiatives such as Superquests and the Guild Advancement Program (GAP). These enable members to build their on-chain identity through its achievement-based reputation system.

Saga is a Layer 1 protocol that allows developers to automatically spin up VM-agnostic, parallelized and interoperable dedicated chains, or “Chainlets,” that provide applications with infinite horizontal scalability. Each Chainlet is a replica of the Saga Mainnet, with the same validator set and security model.

Saga’s mission is to enable the next 1000 chains in gaming and entertainment as part of the growing Saga Multiverse.

Portal aims to unite games and gamers from various blockchain networks on its cross-chain token platform, establishing a united Web3 gaming ecosystem.

Through its partnership with LayerZero, Portal enables a seamless multi-chain experience for gamers, connecting siloed Web3 games with new players through a sleek user experience.

Portal’s technology delivers gamer access and game distribution for a vast array of titles, paving the way for a smooth transition for Web2 gamers into the Web3 universe.

My Neighbor Alice is a farming-themed play-to-earn builder game built on Chromia. The game bills itself as a place where “players can buy and own virtual islands, collect and build exciting items while also making new friends.” Each player has their own avatar representing them in the game, which they can modify as they please. Players can buy virtual real estate from Alice, the game’s eponymous central figure, or the internal marketplace. All purchased land is represented as an NFT.

Disclaimer: this is not financial advice, please invest at your own risk and do your own research.

As i finish this article, i implore upon my valued reader to truly believe openly in the possibilities of a world full of gaming tokens, where our gaming is rewarded and makes us feel inclusive if not more immersed in a world of fantasy or alternate reality both financially and through the senses.