As the DeFi market declined earlier this year, crypto users and investors flocked to the GameFi market to expand their portfolios. Subsequently, the number of game projects grew from 693 to 1,406, a 103% increase year-over-year.

With so many gaming projects, users often have to sift through them. A project should be evaluated not only by its popularity in the industry, but also by its team background, financing status, economic model, user data, etc.

The following is an analysis of the top GameFi projects in terms of daily active users and their popularity, to see if they are P2E games to watch.

5 important indicators for evaluating P2E games The number of GameFi game projects is growing rapidly, but not all of them have positive data performance. Therefore, users should analyze and do their due diligence before screening projects, which can be assessed by these 5 important indicators.

Team Background

Whether the team has a long-term growth plan and financial backing.

If there is support from a well-known venture capital investment, it can add a lot of credibility to the project.

Whether the founders and team technicians have experience in blockchain is also important, especially in the game field.

Financing

A good lead investor can bring traffic and visibility to the project, and can even participate in the design and iteration of the project's economic model. Also check to see if the team has past experience in successfully building and managing projects.

Pay attention to the amount and timing of the financing. For example, in a bull or bear market, the amount of funding varies from project to project.

Tokenomics

The design of the token economy is crucial in determining whether the game's mechanics will be stable over time and carry a large number of users for token transactions.

The liquidity as well as stability of the project's in-game funds can be examined through the single or dual coin model adopted by the project.

Project business model

How the project is profitable is directly reflected in the token price and token market value of the project.

Number of users

The number of users is the key to a healthy GameFi ecosystem. It reflects the popularity of a game project among its users.

Apply the 5 metrics to a real-world example

DeFi Kingdoms

Launched on August 23, 2021, DeFi Kingdoms is a Harmony chain-based metaverse project that incorporates more gamification into the DeFi revenue farming campaign.

Team Background

According to the official website, it is broken down into 9 groups of team members, with functions such as back-end development, front-end development, game design and lore artists, model design, community, operations, and commerce. Since the team members are basically anonymous, it is hard and difficult to judge their professional experience.

On the other hand, the white paper roadmap of the project is very clearly designed in 6 phases. Less than a year after launch, the team has already reached phase 4 and gone live with DFK Chain, the DeFi Kingdoms known for building kingdoms containing games, DEX, popularity pools, and NFT markets. At one point the game surpassed Axie Infinity in terms of trading volume.

As you can see, in a short period of time, the team has managed to move forward with development and operations as planned.

Financing Status

As of April 28th, there is no public funding information for this project. In comparison, Axie Infinity has received 5 rounds of funding totaling $9 million. Therefore, DeFi Kingdoms is a little behind in terms of funding.

However, on March 8, the Avalanche Foundation launched a $290 million incentive program to boost the growth of its subnet game program. DeFi Kingdoms is the first project to receive a $15 million incentive through the Multiverse program. It became the first multi-chain game.

Tokenomics

Many GameFi games currently have a multi-token model, although a single-token model is more convenient for players and less difficult for developers. However, a multi-token model minimizes the impact of token price fluctuations in the secondary market on the game.

DeFi Kingdoms uses a multi-token model to promote liquidity and stability of in-game funds.

$JEWEL is the primary value token in the game. Users can purchase game $JEWEL in the Marketplace and place it in Jeweler for a single coin pledge to receive equity tokens and governance tokens of $xJEWEL in the project to participate in eco-governance voting.

DeFi Kingdom's largest liquidity pool is $JEWEL with Harmony's native token ONE in the Marketplace to form an LP, which has seen approximately 300% to 400% APY over the past few months, generating high revenue generation for users.

To ensure the long-term stability of $JEWEL, most of the $JEWEL obtained from the LP pledge is temporarily locked by system settings. Locked tokens are gradually unlocked and can also be accelerated by mining tasks.

DeFi Kingdoms' Tokenomics and high revenue generation have attracted many users to the game.

Notably, since its release on Avalanche, the game also includes $CRYSTAL token, which functions similarly to $JEWEL on the chain.

The project's business model

The project's business model is directly reflected in its token price and token market value. As of April 27, DeFi Kingdom's market cap of $241 million exceeds that of Alien Worlds, the top game on the BSC chain, and the overall market cap trend for DeFi Kingdom is highly correlated with the number of users participating in the game.

Summary As you can see from the 5 dimensions above, DeFi Kingdoms is currently in its early stages and relies heavily on LPs to incentivize users or retail investors to enter in order to maintain a robust economic system. However, due to the fact that its team members are anonymous and unfunded, players or investors will need to be vetted for security when entering Play to Earn and investing.

As the DeFi market declined earlier this year, crypto users and investors flocked to the GameFi market to expand their portfolios. Subsequently, the number of game projects grew from 693 to 1,406, a 103% increase year-over-year.

With so many gaming projects, users often have to sift through them. A project should be evaluated not only by its popularity in the industry, but also by its team background, financing status, economic model, user data, etc.

The following is an analysis of the top GameFi projects in terms of daily active users and their popularity, to see if they are P2E games to watch.

5 important indicators for evaluating P2E games The number of GameFi game projects is growing rapidly, but not all of them have positive data performance. Therefore, users should analyze and do their due diligence before screening projects, which can be assessed by these 5 important indicators.

Team Background

Whether the team has a long-term growth plan and financial backing.

If there is support from a well-known venture capital investment, it can add a lot of credibility to the project.

Whether the founders and team technicians have experience in blockchain is also important, especially in the game field.

Financing

A good lead investor can bring traffic and visibility to the project, and can even participate in the design and iteration of the project's economic model. Also check to see if the team has past experience in successfully building and managing projects.

Pay attention to the amount and timing of the financing. For example, in a bull or bear market, the amount of funding varies from project to project.

Tokenomics

The design of the token economy is crucial in determining whether the game's mechanics will be stable over time and carry a large number of users for token transactions.

The liquidity as well as stability of the project's in-game funds can be examined through the single or dual coin model adopted by the project.

Project business model

How the project is profitable is directly reflected in the token price and token market value of the project.

Number of users

The number of users is the key to a healthy GameFi ecosystem. It reflects the popularity of a game project among its users.

Apply the 5 metrics to a real-world example

DeFi Kingdoms

Launched on August 23, 2021, DeFi Kingdoms is a Harmony chain-based metaverse project that incorporates more gamification into the DeFi revenue farming campaign.

Team Background

According to the official website, it is broken down into 9 groups of team members, with functions such as back-end development, front-end development, game design and lore artists, model design, community, operations, and commerce. Since the team members are basically anonymous, it is hard and difficult to judge their professional experience.

On the other hand, the white paper roadmap of the project is very clearly designed in 6 phases. Less than a year after launch, the team has already reached phase 4 and gone live with DFK Chain, the DeFi Kingdoms known for building kingdoms containing games, DEX, popularity pools, and NFT markets. At one point the game surpassed Axie Infinity in terms of trading volume.

As you can see, in a short period of time, the team has managed to move forward with development and operations as planned.

Financing Status

As of April 28th, there is no public funding information for this project. In comparison, Axie Infinity has received 5 rounds of funding totaling $9 million. Therefore, DeFi Kingdoms is a little behind in terms of funding.

However, on March 8, the Avalanche Foundation launched a $290 million incentive program to boost the growth of its subnet game program. DeFi Kingdoms is the first project to receive a $15 million incentive through the Multiverse program. It became the first multi-chain game.

Tokenomics

Many GameFi games currently have a multi-token model, although a single-token model is more convenient for players and less difficult for developers. However, a multi-token model minimizes the impact of token price fluctuations in the secondary market on the game.

DeFi Kingdoms uses a multi-token model to promote liquidity and stability of in-game funds.

$JEWEL is the primary value token in the game. Users can purchase game $JEWEL in the Marketplace and place it in Jeweler for a single coin pledge to receive equity tokens and governance tokens of $xJEWEL in the project to participate in eco-governance voting.

DeFi Kingdom's largest liquidity pool is $JEWEL with Harmony's native token ONE in the Marketplace to form an LP, which has seen approximately 300% to 400% APY over the past few months, generating high revenue generation for users.

To ensure the long-term stability of $JEWEL, most of the $JEWEL obtained from the LP pledge is temporarily locked by system settings. Locked tokens are gradually unlocked and can also be accelerated by mining tasks.

DeFi Kingdoms' Tokenomics and high revenue generation have attracted many users to the game.

Notably, since its release on Avalanche, the game also includes $CRYSTAL token, which functions similarly to $JEWEL on the chain.

The project's business model

The project's business model is directly reflected in its token price and token market value. As of April 27, DeFi Kingdom's market cap of $241 million exceeds that of Alien Worlds, the top game on the BSC chain, and the overall market cap trend for DeFi Kingdom is highly correlated with the number of users participating in the game.

Summary As you can see from the 5 dimensions above, DeFi Kingdoms is currently in its early stages and relies heavily on LPs to incentivize users or retail investors to enter in order to maintain a robust economic system. However, due to the fact that its team members are anonymous and unfunded, players or investors will need to be vetted for security when entering Play to Earn and investing.