<h2>What does crypto winter mean?</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3fe2e12685dfa8e6023f659fee92.jpg" alt="crypto winter" title="crypto winter" width="600" height="360"></p><p dir="ltr">A prolonged decline in bitcoin values is referred to in the market as a "<strong>crypto winter</strong>". Non-fungible tokens (NFTs) and less popular crypto coins or tokens are generally included in crypto portfolios along with well-known cryptocurrencies like Bitcoin and Ethereum.</p><p dir="ltr">Since its peak in November 2021, the value of bitcoin has dropped by more than 50%. Widespread price declines had a negative impact on a number of cryptocurrencies and blockchain projects. The current crypto winter supposedly started on <strong>June 13th, 2022</strong>. Given that Bitcoin had already <strong>declined by more than 60%</strong> at that point, this might come as a surprise. From peak to trough, the previous two significant crypto cycles in 2012 and 2019 lasted an average of four years. This could indicate that we're in for a lengthy winter given that the current crypto winter has only recently started. We have no way of predicting when (or even if) the current crypto winter will end, but if it repeats prior patterns, it might take until 2026 before we have another bull run.</p><h2>How crypto winter means to P2E games</h2><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3fe2e12690a8a8e6023f659fee92.jpg" alt="play to earn during crypto winter" title="play to earn during crypto winter" width="600" height="400"></p><h3>The P2E landscape before crypto winter</h3><p dir="ltr">Every company and individual in the blockchain industry has been impacted by the <strong>crypto winter</strong>. Many investors are losing hope as the prices decline. There sometimes seems to be nowhere safe to invest anymore. Such catastrophes can have terrible effects on everyone concerned. Investors that placed wagers on dropping coins lost their money. Businesses are compelled to leave the market. The entire sector experiences a setback and conserves its resources rather than developing and innovating. In times of market collapse, even the most reliable assets won't be able to give rising earnings.</p><p dir="ltr">Blockchain-based <a href="https://www.builder.news/crypto-insights/playtoearn-games-a-new-way-to-earn-RkfHA" alt="Play-to-earn games: A new way to earn" title="Play-to-earn games: A new way to earn" target="_blank" rel="" class="">play-to-earn (P2E)</a> gaming is one prominent example. Over Q3 2021, NFT Gaming alone brought in $2.32 billion in revenue. Axie Infinity, a well-known P2P game, is the first blockchain game to sell $1 billion worth of NFTs. The year 2022 has been a unique tale. A floor-price Axie NFT cost $5 at the beginning of June. In 2021, costs for comparable assets were close to $200. <a href="https://www.builder.news/crypto-insights/6-things-you-need-to-know-before-joining-the-sandbox-metaverse-mJvp0" alt="6 things you need to know before joining The Sandbox Metaverse" title="6 things you need to know before joining The Sandbox Metaverse" target="_blank" rel="" class="">The Sandbox</a>, a well-known multi-player decentralized game environment, is still in trouble. Users were able to explore, purchase land, and build structures that could be sold on the platform, which helped it become well-known. In November 2021, the native SAND token peaked at $8.40. However, by the end of August 2022, the cost was less than $1. Similar things happened in <a href="https://www.builder.news/crypto-insights/decentraland-metaverse" alt="Decentraland: A real creativity in the virtual world" title="Decentraland: A real creativity in the virtual world" target="_blank" rel="" class="">Decentraland</a>, a blockchain-based game world where users could create and earn money from various kinds of content. In April 2021, the native MANA token reached an all-time high of $1.63; but, by late August 2022, it was trading around $0.78.</p><p dir="ltr">Others contend that the <strong>P2E gaming ecosystem</strong> is more durable and is currently operating in a development period amid a bear crypto market, despite the fact that many view GameFi investing as a naturally speculative action.</p><p><em><strong>&gt;&gt;&gt; You might also concern:</strong>&nbsp;</em><a href="https://www.builder.news/crypto-insights/top-play-to-earn-games-in-2022-you-dont-want-to-miss-wDASP" alt="Top play-to-earn games in 2022" title="Top play-to-earn games in 2022" target="_blank" rel="" class=""><em><strong>Top play-to-earn games in 2022 you don't want to miss</strong></em></a></p><h3>The P2E landscape after crypto winter</h3><p dir="ltr">On the other hand, at the time this article was being written, the majority of cryptocurrency projects were bleeding, therefore money and interest have begun to flow to initiatives with strong fundamentals and functioning products. As interest in move-to-earn and <a href="https://www.builder.news/crypto-insights/virtual-land-estate-which-is-the-best-land-to-buy-in-metaverse" alt="Virtual land estate: Which is the best land to buy in Metaverse?" title="Virtual land estate: Which is the best land to buy in Metaverse?" target="_blank" rel="" class="">metaverse land</a> sales is still robust, this shift is more noticeable right now in the P2E space.</p><p dir="ltr">Due to the financial incentives for businesses, resources, and individuals to participate in the fray, compete, and pique the curiosity of new customers, bull markets are excellent catalysts for innovation. However, the market's condition typically has an inverse relationship with the caliber of new ventures that emerge at these times.</p><p dir="ltr">The incredibly brief lifespan that ICOs had before practically dissipating overnight in December 2018 is an excellent illustration of <strong>low-quality bull market ventures</strong>. Regulation and the ensuing bear market at the time stifled ICOs, a mini-craze in and of itself. ICOs did not make any meaningful contributions to the space; they were simply a way to raise money for cryptocurrency projects ahead of schedule. Similar to how most online businesses failed after the Dot Com bubble burst in 2001. Only a select handful, including Amazon and eBay, persisted because they had solid foundations and useful products. <a href="https://www.builder.news/crypto-insights/a-bear-market-and-market-correction-5-key-takeaways-pggc8" alt="Distinguish between a bear market and market correction" title="Distinguish between a bear market and market correction" target="_blank" rel="" class="">Bear markets</a> are for building, and it seems that interest in cryptocurrency games has been higher than it has ever been before 2021, even during a <strong>crypto downturn</strong>.</p><p dir="ltr">One must have a cautious mindset and carefully calibrate their <a href="https://www.builder.news/earn/appropriate-trading-strategy-in-bear-and-bull-market-WWh6p" alt="Appropriate trading strategy in bear and bull market" title="Appropriate trading strategy in bear and bull market" target="_blank" rel="" class="">investment strategy</a> in order to make money without losing it. Spending time and effort rather than money is one method of doing it. Play-to-earn games give their players the chance to use their current assets to their advantage and profit. Even though some of those assets' value has decreased, their primary purpose has not. Players can thus make money even during a bad market.</p><h2>What should P2E games do amid the market downturn?</h2><p dir="ltr">GameFi may have had some difficulties this year, but with the appropriate outlook for the future, the sector as a whole will rebound. Let's look at some of the initiatives that forward-thinking developers are putting their focus on to transform the sector.</p><h3>Business model assessment</h3><p dir="ltr">Crypto gaming behemoth Axie Infinity experienced additional losses when numerous social media influencers and important news sources began asking whether the game was essentially a <a href="https://www.builder.news/earn/what-is-a-rug-pull-in-crypto-and-how-to-prevent" alt="What is a rug pull in crypto and how to prevent to fall victim" title="What is a rug pull in crypto and how to prevent to fall victim" target="_blank" rel="" class="">Ponzi scheme</a> after experiencing an extraordinary security breach that resulted in the loss of $600M+.</p><p dir="ltr">The main problem is that Axie is based on a two-token economy, which means it includes both a utility token and a governance token. This approach frequently has unregulated mint/burn ratios, which causes hyperinflation and a great deal of sell pressure on investors and gamers holding project tokens. The claims that Axie is a Ponzi scheme have arisen since the only way to alleviate this strain is via a consistent inflow of new money.</p><p dir="ltr">Developers must <strong>switch to a single-token economy</strong> in order to <strong>prevent this kind of hyperinflation</strong>. There is less possibility of hyperinflation or mass printing when projects have fixed supplies, which increases coin stability for both investors and participants. In the future, this level of consistency will be necessary to boost customer perception of the P2E market as a whole.</p><h3>Keep the environment in mind</h3><p dir="ltr"><strong>Environmental friendliness</strong> is a P2E gaming feature that is becoming more and more crucial. The majority of the ongoing and prospective projects include NFT, which has sparked significant debate in some quarters over the environmental impact of these games.</p><p dir="ltr">There have long been and still are legitimate concerns about how NFTs may affect the environment. However, some of the accusations leveled at NFTs are unjustified, or at the very least, they don't totally reflect the reality of the situation as it stands.</p><p dir="ltr">It's crucial to realize that different consensus processes are used by blockchains to verify new chains in the block. The Proof of Work (PoW) consensus, which depends on mining to validate transactions, is generally known. However, the Proof of Stake (PoS) consensus, which uses fewer resources because participants band together to join staking pools to validate transactions, was mostly unknown until recently.</p><p dir="ltr">Ethereum is <a href="https://www.builder.news/crypto-insights/the-merge-a-pivotal-event-for-ethereum" alt="The Merge: A pivotal event for Ethereum" title="The Merge: A pivotal event for Ethereum" target="_blank" rel="" class=""><strong>changing over to a PoS consensus</strong></a> in a news-making move. However, it was the most widely used blockchain for <a href="https://www.builder.news/crypto-insights/how-to-mint-nft-an-indepth-guide-to-mint-nft-in-2022" alt="How to mint NFT" title="How to mint NFT" target="_blank" rel="" class="">NFT minting</a> while it was still employing PoW, raising alarm and outrage over the rising popularity of NFT projects.</p><p dir="ltr">But there are alternative options, as the Ethereum move demonstrates. Developers should concentrate on PoS-based blockchains, whether that be the future Ethereum or already-existing PoS ecosystems like Solana, if they wish to restore trust and confidence in the P2E crypto market.</p><p><em><strong>&gt;&gt;&gt; Read more:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/pow-compared-with-pos" alt="PoW compared with PoS - What solution is optimal?" title="PoW compared with PoS - What solution is optimal?" target="_blank" rel="" class=""><em><strong>PoW compared with PoS - What solution is optimal?</strong></em></a></p><h3>Concentrate on enhancing gameplay</h3><p dir="ltr">The fact that these games aren't enjoyable to play is another pertinent critique of the existing P2E industry. Developers have argued in the past (and even now) that players are not there to enjoy the gameplay; rather, they are there to earn.</p><p dir="ltr">But that opinion is changing, particularly as Web3 becomes more prevalent. Developers need to stand out in a crowded market, and the best way to do this is to copy the gameplay of popular Web2 games.</p><p dir="ltr">The majority of today's games have poor visuals and little narrative, offering little else to keep players coming back than the chance to make money.</p><p dir="ltr">Smart developers, however, are taking their time and concentrating on making AAA-caliber games with compelling backstories. They have come to the conclusion that while being the first to market may "win" in terms of attracting curious individuals eager to make a fast buck, it is not the formula for a business that will endure.</p><p dir="ltr">Projects like Wizardia and Mars4 show that alpha releases are becoming to become commonplace. Additionally, there is a stronger emphasis on creating communities throughout these projects. Before the game is released, the developers are making adjustments and changing their roadmaps based on direct feedback from the players who are invested in it.</p><h2>Bottom lines</h2><p dir="ltr">It could be said that 2022 has given the markets a lot of unexpected surprises. Of course, we don't know how long the current crypto winter will last. However, looking at the positive signs of the P2E market over the past time, it proves that P2E is still one of the long-term investment.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

A prolonged period of depressed bitcoin asset prices as compared to previous peaks is known as a "crypto winter." Let’s see its impact on the P2E area and whether P2E could survive through this article below!

How can P2E games remain its position during crypto winter?