Esports, which are simply defined as multiplayer video games played via an organized competition, are becoming more popular. As a result, data analysts Market.us estimate that by the end of this year alone, the international esports market will exceed $2.3 billion in value. At the current rate of expansion, this valuation is expected to grow by over 20% every year until 2032.
According to the same study, the key drivers of esports popularity are technological innovations. This includes mass smartphone adoption, improved video game access, and the proliferation of platforms for gameplay and streaming. Apart from these, another reason why esports is becoming more well-known even outside of gamer circles is crypto. Since 2009, when crypto was first introduced, the gaming sector has been a relatively early adopter, given the compatibility between the two digital industries. Today, although cryptocurrencies may have fluctuated in demand in other sectors, these digital tokens remain a huge part of the gaming landscape. Esports, in particular, have found that crypto has helped them broaden and strengthen their reach. Read on to find out how.
Esports betting opportunities
Given the highly competitive esports environment, it’s only natural that sports betting has taken root here. As a result, a recent study reveals that esports betting is poised to be the fastest-growing segment of the nearly $100 billion worldwide market. Since most esports spectators view the games remotely, using cryptocurrencies to bet is actually more convenient since it’s also transacted online. As seen on Thunderpick’s Overwatch betting options, cryptocurrencies can be used to take part in different match betting lines, including map winner and match winner. A trusted crypto betting platform will even offer special perks like free bets and insure bonuses. Since crypto is decentralized and not beholden to the timetables of middlemen and their institutions, they allow bets to be made anywhere at any time. Furthermore, using crypto means faster deposit times, lower transaction fees, and safer data privacy. Bettors can also use a range of tokens, including Bitcoin, Dogecoin, and Tether, thereby allowing them more control over their betting strategy. Understandably, thanks to all of these perks, those interested in sports betting are more encouraged to follow esports.
Stronger sponsorships
As with any other sports pursuit, sponsors are necessary to fund not just the events but also the athletes. Consider that esports events are costly endeavors. During training for these events, teams must be supported with a dedicated training setup and some monetary aid. Considering that every game must be played on the very best gaming rigs, event coordinators must provide top-of-the-line setups for dozens of teams at a time. The infrastructure required to house each event can also be expensive, especially as the number of spectators per match grows. For instance, the League of Legends championships in 2023 recorded a peak viewership of over six million across in-person and online audiences. This is where crypto comes in, with some token stakeholders coming in as corporate sponsors. For instance, just this year, it was announced that OG Esports sponsors again include Wintermute. The latter is an algorithmic trading firm and cryptocurrency liquidity provider that first partnered with the European organization in 2020. Press releases explain that through this partnership, the crypto sponsor hopes to help the organization’s teams grow further.
Participation in team decisions
As with any entertainment-related industry, fan support is essential. In esports, teams are committed to enhancing fan loyalty by offering them more interactions, like fan meetings, or by posting user-generated content (UGC) on their social media accounts. Crypto provides another means of fan interaction via the release of special esports fan tokens. By purchasing these tokens, fans not only only special merch, but they’re also able to “influence” certain team decisions. For instance, fans who buy the esports team Heretics’ token can vote on things like jersey design. This increases the sense of fan involvement and ownership that can further fuel esports.
Improved tournament possibilities
To further improve esports’ appeal, it’s important that games are more welcoming to those outside of the uber-elite teams and championships. Currently, most esports events are restricted to the cream of the crop not just because of their skill level but also because of tournament participation fees. As a response to this barrier, some esports players and organizers have taken to crypto technology to improve the industry’s inclusivity. A prime example of this is the Electronic Sports Tournament Network (ESTN). Officially launched in 2022, the ESTN platform is a blockchain-powered metaverse esports arena. Through this, online tournaments can be set up by smaller, potentially less financially backed parties. NFT “seat licenses” can also be bought, enabling seat holders to receive a portion of any revenues generated from tournament fees. This can help increase interest among parties who want to start earning through the esports industry.
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