Investing in NFT Games – Motley Fool

Investing in NFT Games – Motley Fool

Non-fungible tokens (NFTs) are exploding in popularity. Trading volume for NFTs hit $10.67 billion in the third quarter of 2021, up a whopping 704% from the previous quarter, according to analytics platform DappRadar. One factor driving the skyrocketing trading volume is the growing popularity of NFT games. In-game items generated $2.3 billion of trading volume in that period, representing 22% of the total.

NFTs games are still in their early days. Because of that, many believe there’s significant upside ahead as NFTs become more mainstream. Here’s a look at how investors can get in on this action.

A person looking at NFTs.

Image source: Getty Images.

How do NFT games work?

The simple answer is that NFT games allow users to earn money as they play. Blending video games with finance, or GameFi as players call it, these games use NFTs — unique digital collectibles on the blockchain — that gamers can sell in games to other collectors and players. Gamers can also earn NFTs in certain pay-to-earn gaming models. This setup allows gamers to invest in NFTs, which have the potential to appreciate in value.

NFT games to keep an eye on 

Several NFT games have emerged as popular platforms among gamers as a way to earn and buy NFTs to make a profit:

Top NFT Games