Huobi Research – the research-focused subsidiary of major crypto exchange Huobi – has reportedly classified an increasingly keen interest in blockchain gaming as a direct impact from GameFi initiatives. 

Specifically, implications from GameFi reportedly suggest the use of decentralized finance (DeFi) and blockchain gaming that incentivizes users based on a play-to-earn model. 

Per Huobi Research, on-chain data reportedly revealed that GameFi projects have undergone a major incline since June this year, primarily due to a significant lessening in transaction costs as well as enhanced user experience.

The research further suggests that different well-known blockchain games, nominally CryptoKitties, reportedly reeled in the recorded highest number of 140,000 active users and 180,000 transactions, on a daily basis, back in November four years ago, but lost almost all (90%) user interaction in only a matter of months. 

“Early blockchain games suffered from defects such as singular models, simplistic entertainment and poor experiences in general.”

Nonetheless, the blockchain gaming sector reportedly witnessed a bounce back via the integration of nonfungible tokens (NFT), DeFi and other play-to-earn elements. NFT-based pet game Axie Infinity made $9.72 million in a single day in June, exceeding Tencent’s record at the time.

“DApp rankings show that five of the top nine apps are GameFi apps. As of early December [2021], GameFi’s weekly active users have reached 9.21 million, a record high.”

Concluded from the above insights, Huobi Research reportedly claimed that transaction costs play a vital role in new institutional economics. While the gaming sector has already finalized the implementation of play-to-earn features, “the society tends to choose the system with the lowest transaction costs to operate.”