Traffic Arbitrage in the Gamefi Niche - History and Present, Can You Make Money in 2024?

The cryptocurrency industry is evolving and changing very quickly. New sub-niches are emerging that attract hundreds of millions of users. “GameFi” consists of two words - ‘Game’ (game) and ‘Finance’ (finance). These are services and applications whose task is to replace traditional banking with a simple and straightforward system of mutual settlements, and wrapping it in a game shell. 

This article is about what GameFi is, how this industry appeared and how it is developing, as well as how arbitrageurs can earn in this sector in 2024.

The main difference between GameFi projects is that gamers do not just enjoy the gameplay, but benefit from their achievements. These can be tokens or digital assets (weapons, land, characters) that can be sold outside the game.

For example, the virtual world The Sandbox is an environment where each gamer can build, buy and sell objects using SAND tokens that can be exchanged for cryptocurrency or fiat money. The SAND token had a maximum capitalization of $6 billion in 2022. After the hype has passed, the total value of tokens in circulation is 0.5-2 billion dollars. 

In simple words, by performing any actions inside the game, you can earn real money, which fundamentally changes the very idea of the gaming process, because now it is not only about getting a pleasant sensation, but also about the possibility of financial earnings.

History and Prospects of GameFi

To understand how to make a profitable trade in this sphere, it is necessary to pay attention to how the GameFi industry appeared and how it is developing. 

In general, the idea of combining blockchain and game economy appeared in the early 2010s, but the realization was presented in 2017 in the game CryptoKitties. The essence is simple - raise virtual cats of different breeds and sell them. At the end of 2017, the value of one cat ranged from a few dollars to 100 thousand dollars!

In 2020-2021, when there was a boom of cryptocurrency projects, the Axie Infinity game entered the market. With its help, many provided themselves with a steady income: gamers bought monsters, played and earned in-game currency and NFT tokens that can be exchanged for real money. After that came a decline in popularity. 

There were many similar projects between 2021 and 2023, but the turning point happened in 2024 with the appearance of Notcoin.

Arbitrage in the Gamefi Niche - History and Present, Can You Make Money in 2024?

The Notcoin application, which is available for Telegram users, has enabled a new way of looking at GameFi and arbitrage in this area. If previously all computer and smartphone users could be divided into two types (gamers and non-gamers), Notcoin allowed everyone to become a gamer, even those who had never had any interest in games. 

All you had to do was tap, i.e. press your finger on the screen, and such earnings were available only on smartphones, and only for Telegram users. Millions of users around the world were inspired by such a simple idea, and then found out that such simple actions could bring them several hundred dollars in the end. Moreover, the project was and still is supported by Pavel Durov himself, claiming that the value of the tokens earned can grow 100 times.

Notcoin was followed by other popular applications of a similar type, the most famous of which is Hamster Kombat.

Trends and Arbitrage Opportunities in GameFi in 2024

• The example of Notcoin, the active development of Hamster Kombat and other similar applications shows that game creators strive to create games that are accessible to a wide range of users, that is, everyone, not just those who have powerful gaming computers and are ready to immerse themselves in professional gameplay. Therefore, the target audience of many modern GameFi offers is any Internet user who has a smartphone. However, such tap to earn applications are most actively developed in Telegram, which imposes another limitation: the gamer must have this messenger installed, or be ready to install it.
• Active focus on users attracting other users and earning game currency for it. Due to this, game creators delegate the execution of marketing activities to the gamers themselves. This opens up a wide range of opportunities for arbitrageurs who can create videos for YouTube, TikTok, buy advertising posts from popular Influencers and even promote new projects through general chat rooms and channels in social networks and messengers. Many players, especially those who have channels and groups in social networks and messengers, focus on earning money by attracting other users, that is, the game itself serves only as an additional tool, not the main source of income. Arbitrageurs can also use this strategy to promote their projects dedicated to GameFi, rather than specific offers.
• Arbitrage of in-game assets and NFT. Usually arbitrageurs work exclusively with traffic, but can invest working capital directly into in-game assets, especially if the game has celebrities behind it who support it through media, leading to attracting new users.
• GameFi is a global industry, but 2024 is seeing particular growth in popularity in low-income Asian countries. Internet users are attracted by the possibility of easy income without investing money, so they are willing to spend what they have - their time.
• The main trend of GameFi is rapid development, the emergence of fundamentally new projects, and the spread of the game industry to a wide audience. Therefore, it is important for arbitrageurs to track the emergence of new projects and try to enter them as soon as possible. It is important to subscribe to well-known influencers who run Telegram-channels and other social networks. Sometimes a new offer remains relevant for only a few weeks, and the main money is earned by quickly attracting a large number of users.
   

Why Do You Need Proxies When Arbitrating Traffic in DemiFi?

Usually arbitrageurs have problems with managing large numbers of accounts when buying traffic. But in the case of GameFi, ensuring anonymity becomes even more important.

For example, when it comes to projects like Notcoin or Hamster Kombat, the earning opportunities for a single user are limited, because the original goal of such projects is to attract new gamers. Therefore, arbitrageurs can make dozens and hundreds of accounts, which will eventually allow them to earn good money.

For this purpose, you should definitely use high-quality proxies. KeyProxy offers high-quality mobile proxies for arbitrageurs and other online professionals. Unlimited traffic, 3-20 Mbit/s speed and 99.8% uptime make proxies from KeyProxy a worthwhile and reliable offer.

Conclusions

The GameFi niche in 2024 is not what it used to be. It will probably change in the future as well. One thing is clear, this is one of the most dynamically changing areas, so arbitrageurs should arm themselves with reliable and proven tools like quality proxies from KeyProxy and always be on the lookout!