• 51% of participants said they invested in GameFi to make profit
  • The State of GameFi survey included 2,428 investors
  • GenZ investors allocated 52% of their net worth to GameFi

Many people across the world are drawn to cryptocurrencies due to GameFi, a new survey conducted by blockchain gaming platform Chainplay has shown.

The State of GameFi 2022 survey, published last week, showed that over 75% of participants invested in crypto because of GameFi. It also claimed 68% of GameFi investors who responded to Chainplay joined the market less than a year ago, a period that mark the onset of a significant decline in the price of Bitcoin and altcoins.

GameFi is a crossover product of the decentralized finance (DeFi) industry with the gaming industry. These games support cryptocurrencies and non-fungible tokens (NFTs) as well.

Meanwhile, a majority of participants (51%) confirmed their main objective for jumping onto the GameFi bandwagon was to make profits. Another reason was curiosity, which acted as a driving force for female investors who also started investing in GameFi.

"A whopping 43% of female investors said they participate in GameFi out of sheer curiosity," the survey showed.

Additionally, among the age groups that invested in crypto, GenZ investors reportedly allocated an average of 52% of their crypto portfolio to GameFi. On the other hand, participants spent 43% lesser time on blockchain games this year, amounting to around 2.5 hours, while the value was 4.4 hours last year.

"89% of crypto investors worldwide saw their GameFi profits decrease in the last 6 months with 62% of them losing more than 50% of their profits," the survey said.

This decline in profits was attributed to "poor in-game economy design" by 58% of GameFi participants and 75% of non-GameFi investors said they won't invest in such projects due to "rug pulls, Ponzi schemes, and pyramid schemes projects."

A similar survey revealed that digital token ownership in the U.S. soared to 13% in July. Another survey has claimed that 46% of the 16% of Americans who invested in crypto confirm their investments have done worse than expected.

Clients of a crashed crypto lender Celsius are fighting to get their money back
Clients of a crashed crypto lender Celsius are fighting to get their money back AFP / Justin TALLIS