The Rise and Fall and Rise Again of Web3 Gaming: How Play-to-Earn Reborn

If there’s one thing that the year 2024 will be remembered by crypto lovers for a long time, then that is the advent of blockchain based “play-to-earn” games.

The year 2024 will go down in crypto lore for ushering in a new era of blockchain-based "play-to-earn" games.

This trend has taken the crypto space by storm, introducing a new generation of Web3 games that are revolutionizing the way gamers play.

In these games, players can earn in-game tokens for completing challenges and besting opponents, which can later be cashed out once the token is listed on an exchange.

Let's take a closer look at the first and second waves of Web3 gaming and how they have fared in the gaming arena.

First Wave

The initial wave of Web3 games that emerged in 2021 was met with great fanfare, with titles like Axie Infinity making headlines after some players claimed to be making hundreds of dollars a month simply by playing the game regularly.

Being an integral part of Web3 games, NFTs hit sky-high valuations, with one sale of nine plots of virtual land in the game fetching a cool $1.5 million, making it one of the most expensive token sales of all time.

The early success of Axie Infinity and other titles, such as Splinterlands, Gods Unchained, and Star Atlas opened the floodgates for a slew of new play-to-earn games to hit the market, as developers and game studios rushed to capitalize on the enthusiasm.

The Fall of the First Wave of Web3 Gaming

However, the hype around Web3 gaming quickly fizzled out as the crypto industry entered a downturn towards the end of that first year. As token values dropped, so did gamers' earnings, leading many of them to abandon the games en masse, which had a knock-on effect that highlighted many of the shortcomings of the new genre.

As players began to leave games like Axie, its native token and NFTs were hit by a sharp devaluation – prices crashed, rendering the game even less rewarding, and critics took aim at its "tokenomics" model, which relied on new players joining the game to bolster the value of its digital assets.

Moreover, the games themselves left a lot to be desired for many players. The graphics in most Web3 games were notably poor, and the gameplay itself quickly became extremely repetitive, with most players only sticking around for the rewards on offer. There was little enjoyment to be had out of the game itself.

Second Wave: Play-to-Earn Reborn

The days of rudimentary graphics and repetitive gameplay have been consigned to the dustbin.

In the past year, Web3 gaming has undergone a major evolution, with some astute developers realizing that there is still huge potential in the concept. This has meant creating better, more enjoyable games with slick graphics, engaging storylines, and a simpler onboarding process.

Some of the newest Web3 games to emerge this year can realistically compete with popular titles like Grand Theft Auto, Call of Duty, and Resident Evil. We're talking about a new generation of AAA Web3 games that not only deliver enthralling gameplay but also provide real-world value to players.

This second generation of Web3 games is being built using advanced graphics engines like Unreal Engine and Unity, and they integrate some of the most sophisticated AI models and gameplay mechanics to enhance the user experience.

Why New Web3 Games are Catching Eyeballs?

Improved Gameplay

In terms of gameplay, AMGI Studio's latest hit My Pet Hooligan stands head and shoulders above the earliest Web3 games, offering an experience that is more akin to Fortnite or Pub G. It's a winner-takes-all ‘battle royale’ style game that boasts excellent graphics, a complex storyline, and adrenaline-pumping gameplay.

Set in the wacky, rabbit-dominated world of Hooliland City, the game combines non-stop, guns-blazing action with a social aspect, AI-powered individual expression, and, of course, valuable rewards in the form of KARRAT tokens, the native token of the Karrat blockchain protocol it inhabits.

Players can earn KARRAT rewards by engaging in gun battles with their peers, but there's a lot more to the gameplay than just fighting. Players navigate the city on skateboards, and there are ample opportunities for them to showcase their skating skills and earn additional rewards.

Easier Onboarding

Another high-end play-to-earn game to emerge last year is Citizen Conflict, which aims to unite Web2 and Web3 gamers with its engaging gameplay and rich rewards. It's built on the Unreal Engine 5 platform and boasts stunning graphics along with a sustainable ecosystem and a dedicated fan following.

Like My Pet Hooligan, Citizen Conflict is an action-packed first-person shooter game that seeks to democratize access to eSports by enabling everyone to earn in-game rewards, regardless of whether they win or lose.

Conclusion

Going forward, we can expect to see even more Web3 games emerge that place a greater emphasis on the actual gameplay and player