Decentralized Finance
Decentralized Finance or DeFi, refers to a blockchain-powered financial system functioning without traditional intermediaries like banks. It empowers users to engage in decentralized lending, borrowing, and cryptocurrency trading. Despite the challenges posed by the recent bear market, DeFi has demonstrated significant expansion compared to pre-pandemic levels, showcasing its potential to drive broader adoption. The praise for DeFi stems from its inherent transparency and immutability, distinguishing it amid industry discussions. There is a prevailing belief that the next crypto bull run is likely to be initiated by the DeFi sector.
Gaming Finance
The emerging concept of GameFi, short for Gaming Finance, blends gaming with DeFi, enabling players to earn cryptocurrency through gameplay and engagement in the gaming ecosystem. Projections from Grayscale suggest substantial revenue potential, reaching up to $1 trillion. GameFi stands poised to revolutionize the gaming industry, presenting fresh opportunities for both gamers and investors.
The relatively new concept of GameFi has been gaining popularity in the blockchain industry. Some popular examples:
Axie Infinity: A popular GameFi app that allows players to earn cryptocurrency by playing the game. Players can buy, breed, and trade digital pets called Axies, which can be used to battle other players.
Rainmaker Games: A GameFi marketplace that allows developers to create and sell NFT-based games. Players can earn cryptocurrency by playing these games.
StepN: A GameFi platform that allows players to earn cryptocurrency by completing fitness challenges. Players can also trade their earned tokens on cryptocurrency exchanges.
Bockair: A new GameFi allowing players to fly around the world and earn MATIC by completing different levels of the game. To play the game players need to hold the Blockair Passport NFT in their wallet.
The potential for the next bull run lies in the continued growth and evolution across DeFi and NFTs. Despite the total value locked in decentralized protocols falling significantly amid the crypto winter, DeFi still shows considerable growth over pre-pandemic levels. Away from price action, DeFi and NFTs have shown massive potential to drive adoption. As TVL increases, the narrative will feed on itself, and the bull run will begin from there.
DeFi and GameFi have the potential to be the big winners in the next bull run in the crypto sector.
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