The Growing Popularity of Play-to-Earn (P2E) Games
Play-to-earn (P2E) games have been dominating the crypto industry, with more than half of active wallets tracked by Dappradar connecting to blockchain-based games in the first quarter of 2022. Games like Axie Infinity, Pegaxy, Alien Worlds, and others continue to generate millions of dollars in trading volume over the past 30 days.
The Unsustainability of Some P2E Games
Despite their popularity, some P2E games are struggling with unsustainability issues. An example is Axie Infinity, whose Smooth Love Potion (SLP) token has been at depressing levels for several months, causing a decline in unique wallet addresses interacting with the game.
The Emergence of Move-to-Earn (M2E) Games
A new offshoot of the P2E model, called move-to-earn (M2E), has been gaining attention lately. M2E games follow the play-to-earn model but center on health and fitness, rewarding users for their physical activity. Genopets and Dustland Runner are just a few projects utilizing this model, but STEPN seems to be attracting the most users at present.
What’s Behind STEPN’s Hype?
The interest around STEPN is due to its governance token Green Metaverse Token (GMT) going parabolic, appreciating 24,500% since its token sale on Binance on March 9. Venture capital firm Sequoia Capital and other Web3 investors have also invested in STEPN, purchasing $5 million worth of GMT in a seed funding round back in January. GMT’s rise can be attributed to its rapid user growth, with STEPN’s Twitter followers hitting 250,000 from just under 50,000 a month ago.
Addressing the Issues of P2E Games
STEPN tries to address the issues associated with P2E games by implementing ‘strong’ token sinks. GST is burned whenever a new sneaker is leveled up, minted, or repaired. The repair cost alone is mandatory to prevent a decline in user earnings. STEPN also attaches intangible value to in-game items, such as social benefits and the aesthetic feel of its NFT sneakers.
A Sneak Peek at STEPN’s Mechanics
STEPN is a Solana-based game that lets users purchase non-fungible token (NFT) sneakers to start playing. When users play the game, the app tracks their movement through the GPS on their mobile phones and rewards them with in-app tokens called Green Satoshi Tokens (GSTs). These tokens can later be traded for USD Coin (USDC) or Solana (SOL), allowing users to realize their earnings.
Is STEPN a Cheap Game to Play?
For the average Axie Infinity player, STEPN is not a cheap game to play. While the cost of one Axie was around $600 in 2020, the bottom price for an Axie is now less than $20. In contrast, the average floor price of a sneaker on Solana NFT marketplace Magic Eden is 13.67 SOL, or roughly $1,400.
Not Alone in the M2E Space
STEPN is not alone in this new gaming subsector. Genopets is another Solana-based game that is still in its beta phase. It is similar to STEPN but is more of a role-playing game, letting users use physical movement and cognitive exertion to progress in the game and level up their Genopet NFT.
Can STEPN Truly Avoid the Pitfalls of Axie Infinity?
The big question is whether STEPN can truly avoid the pitfalls of Axie Infinity and make playing the game more interesting than playing it for cash. In other words, is sustainability on its side in the long run or is what’s happening now just the initial phases of its hype train?
The Future of M2E Games
As the move-to-earn space continues to grow, one thing is certain: the future of gaming will be shaped by blockchain technology and the rewards that come with it. But can STEPN truly avoid the pitfalls of Axie Infinity? Only time will tell.
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