P2E Coins and Why It’s Important to Pay Attention to Them

P2E is making waves in the gaming and crypto markets and is becoming one of the main targets for crypto investors. Despite their rising popularity, there is so much misinformation about the play-to-earn model that some clarifications are required to understand why P2E coins are important, and why not all of them are here to stay.

When you’re playing a traditional game, you invest in it by purchasing in-game items and paying for access to specific features without receiving any material rewards. In P2E games, you invest in the same way, but you receive material rewards for your contributions. These rewards are provided in the native in-game tokens, or P2E, which have potential value in the real world. They can be exchanged for fiat money or another cryptocurrency. 

P2E tokens don’t have any intrinsic value and their price depends solely on demand. If nobody wants your token, it will lose its value completely. 

What is the probability that tokens of a popular P2E game are going to drop in value? Here’s an example: think about traditional games, such as Minecraft. They don’t pay players - on the contrary, players pay for in-game items, access to advanced features, and an opportunity to continue the game. This demonstrates that if a game is interesting enough, players are willing to pay to access it. 

What would happen if, along with a fascinating gaming experience, players get an opportunity to earn? They will invest in the game more willingly, and the token price will grow. This is one of the main reasons why P2E tokens attract the attention of investors - they have significant earning potential. 

While P2E coins look promising, it doesn’t mean that they have equal potential. Let’s look at some examples from the most popular projects and see whether they’ll last.

The four major players that dominate the P2E market are:

Their market caps are times higher than those of their competitors:

The growth of P2E tokens price is determined by several factors. First of all, the cryptocurrency market has bounced back from a downturn. However, not all P2E tokens have performed similarly but those that did were quite successful even when the market was down. 

The main reason for this trend is the userbase for P2E tokens- gamers. Gamers are more interested in playing a game as opposed to the market price or market cap of the token that they use for the game. This means that if the token’s value plunges, gamers won’t quit their favorite game based on the token’s performance. 

Another factor that drives the adoption of P2E games and their tokens is their accessibility. To play a traditional game, the player needs to invest. Playing a P2E game also requires an initial investment but players are rewarded for their efforts and the rewards might be high. The appeal of the tokens’ potential value, therefore allows P2E games to attract not only gamers but also people who are simply looking for an opportunity to earn. Even though the latter group are only present when the game offers earning opportunities, they contribute to the game’s overall popularity and encourage the growth of its token value.

We’ve already seen that not all P2E games experience similar levels of success or performance. While some games such as Axie Infinity are growing in popularity others are forgotten before launched, demonstrating that not all P2E tokens are attention-worthy. Furthermore, the longevity of currently popular P2E tokens is not guaranteed.

As mentioned above, the main attraction of P2E games is the opportunity to earn more so than the gameplay. As long as this earning opportunity exists the tokens’ value can increase, meaning that players who expect to earn while playing will be attracted to the game. Conversely, when the market is down players may quit if the game doesn’t offer an alternative incentive to continue playing.

This incentive could be as simple as an excellent gaming experience. Consider some of the most popular traditional games such as Minecraft: don’t pay anything to gamers. On the contrary, gamers pay to access specific features or obtain in-game items. What attracts gamers, despite pay-to-play features are features such as an engaging plot, excellent graphics, and life-like sound accompaniment.

For now, the majority of P2E games can’t offer the aforementioned benefits. 

As soon as games are developed that provide an immersive gaming experience along with the benefits of a P2E mode first-generation P2E games will be forgotten. 

New P2E games will change how blockchain-based gaming is approached. Instead of focusing on several predetermined scenarios, the game will be able to adapt to changing user behavior. Multiple scenarios will be possible, allowing every user to find a field where they can succeed. Even if a suitable scenario isn’t available, users will be given voting rights and will be able to participate in decision-making on future game development. 

P2E coins are here to stay, but not all of them will be equally valuable for investment purposes. To determine the best games for investing, check both its current features as well as the game’s potential future features. A perfect game is not only about earning opportunities, but also an excellent user experience.