DeFi Kingdoms has done something no one expected to see. It has yield farming like mechanics, but with a game overlay. The design is exquisite and has all the elements of “ponzinomics” we saw in algorithmic stablecoins, but with real gameplay behind it.
Layer 1 protocols are competing for developer activity on their chains, and Harmony (ONE) has knocked it out of the park with the success of DeFi Kingdoms.
There will almost definitely be competitors that pop up with a similar level of addictiveness and strong community. These play-to-earn games are going to accelerate in adoption, due to their positioning at the intersection of NFTs, Metaverse, and DeFi.
Any game where holding the token benefits users will have a natural utility that draws in more users to metaverse-like applications. Most importantly, if you can make these games fun, you have a real chance at attracting a long-term userbse that isn’t just there for the short-term gains.
Conclusion
As a final note, please remember that in April 2021 everyone "knew" that DeFi Summer was coming and invested accordingly. They were wrong and the meme has not yet played out. Be cautious and know that unexpected developments will always occur in a space like this, and the best thing you can do is be diversified enough to benefit from multiple narratives playing out.
NFT season was a surprise, yet many investors adjusted their priorities and thrived. Being able to adapt to a shifting metagame and see where the less advanced speculators will end up is the key skill here in the months ahead.
David Shafrir is the co-founder and CEO of Secure Digital Markets, a leading digital asset brokerage that provides access to cryptocurrency and emerging digital asset markets. Shafrir is a serial entrepreneur with a proven track record of bringing disruptive technology to market and generating strong returns for investors. He specializes in seeking new growth opportunities that align with the company’s mission while forging and maintaining client relationships.