Digital property rights: Through the creation of NFTs facilitated by blockchain technology, in-game purchases transform an expense into an asset, creating actual secondary value from these purchases.
Increased financialization: players can use their virtual items like traditional assets as collateral for usage in DeFi. (e.g. a player could secure financing for their next battle pass by lending out their high-end weapon)
Healthier game economies: Opportunity to monetize more players vs. the free-to-play model where, on average, less than 2% of players actually purchase in-game items. The ability to monetize the long tail of users comes from a deeper willingness to spend, driven by the benefits for players (e.g. digital asset ownership)
Axie Infinity is among the biggest blockchain games; it is a Pokémon-inspired blockchain-based game that allows players to earn income in the form of tokens and other rewards by breeding, battling and trading digital pets called Axies
Axie Infinity has seen average revenue per owner (ARPU) over $100, as compared to Pokemon Go’s ARPU of $1 to $10.
Axie Infinity’s governance token AXS is also one of the best performing digital assets year-to-date, posting a 431% price increase over the 30 days period in July 2021 and a 7089% growth since January 2021
During the second week of July, Axie Infinity generated more protocol revenue than Ethereum and Bitcoin (~US$36 million)
Source: Forbes, Bitkraft