The gaming industry is one of the most successful and quickly growing industries, and along with it, the crypto space is growing just as quickly. Combine these two, and what you get is looking to become the next big thing since, with the explosion of NFTs and Metaverse, it already has the attention of crypto leaders.
GameFi to become the next big thing?
That is the shared opinion of the investors and developers alike. This is because DeFi protocols and blockchain gaming tokens and projects such as Axie Infinity, Decentraland, and Metaverse have noticed a lot of investment this year.
Thus, tapping into that space, Solana Ventures partnered with Yield Guild Games subDAO (YGG SEA) as well as co-led a $500k investment in the project. Solana Ventures will work with YGG SEA to provide resources and training to Southeast Asian game developers and the broader gaming community through this exclusive strategic agreement.
With over 225 million gaming and e-sports fans, gaining a foothold in this region will unlock a whole new demographic for Solana. This way, the blockchain will be able to deploy new titles in the Solana ecosystem drawing in higher investments from GameFi enthusiasts.
By working closely with YGG SEA's country managers, Solana will develop training programs on building projects on the Solana blockchain and connect game development studios to engineering resources.
Talking about the deal, the Head of Solana Ventures, Matt Beck, said,
"Southeast Asia is a major hub of innovation in blockchain games, and we are excited to partner with YGG SEA to build sustainable value in the Southeast Asian communities and developer ecosystem. Game companies should not only focus on monetization. Our plans are to build out learning and development resources to create real, long-term value in Southeast Asia, and ultimately help bring the best games and products to market."
Since Solana intends to establish a long-term presence in this region beyond GameFi, this partnership with the Yield Guild Games subDAO will act as a critical stepping stone.
Why is GameFi so important?
As mentioned earlier, GameFi attracts investment from a cohort called" gamers" who would usually refrain from investing in the likes of NFTs or buying virtual plots in the Metaverse. As Venture Capitalists such as Solana Ventures have identified it, they are actively trying to establish their presence/domination in this area.
In fact, just in the first quarter of 2022, from January to March, VCs and other investors have infused over $2.5 billion. The total value locked in Decentralized Finance (DeFi) protocols declined by $28 billion in the same duration.
Although DeFi does command higher participation, the presence of GameFi is quickly rising as well, with the latter standing only a couple of hundred active wallets away from DeFi's stature.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.