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Ready Player Earn: Where NFT gaming and the virtual economy coincide

The surging popularity of NFTs is pushing play-to-earn NFT games to experience even greater adoption.
Nonfungible tokens (NFT) have arguably transitioned from being an obscure part of the crypto and blockchain space to occupy greater.

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The surging popularity of NFTs is pushing play-to-earn NFT games to experience even greater adoption.

Nonfungible tokens (NFT) have arguably transitioned from being an obscure part of the crypto and blockchain space to occupy greater significance within popular culture. Indeed, as cryptocurrencies and decentralization appear to permeate the conversation across social, political and economic lines, the apparent hype surrounding NFTs seems to be incentivizing greater adoption of digital currencies.

Within the NFT space itself, gaming has often been cited as a possible use case for the commercialization of digital collectibles. Now, within the ambit of play-to-earn NFTs, there appears to be a growing coincidence of gaming, blockchain and the virtual economy.

Inside this confluence point, projects such as Axie Infinity have been enjoying significant growth by combining the satisfaction gamers enjoy from playing games with the opportunity to earn monetary rewards in the form of cryptocurrencies. With this popularity comes an increase in token valuation for these NFT games, which in turn drives even more patronage.

NFT play-to-earn gaming might be the next major economic activity in the crypto matrix. The significant growth in popularity of the model could see the market being mentioned in the same breath as other components of cryptocurrency commerce such as mining, staking and trading, at least in terms of value generation potential.

$1-billion Axie Infinity

On Aug. 9, Axie Infinity (AXS) crossed $1 billion in all-time volume, cementing the game’s position as one of the major projects in the current bullish NFT epoch. Between July 9 and Aug. 9, the NFT game reportedly recorded about $780 million in sales from over 1.4 million transactions.

Data from Similarweb shows that the Axie Infinity website ranked in the top 1,200 sites globally as of the end of July, with online traffic to the site having grown almost fivefold in the last six months. Tweeting on Aug. 6, Axie Infinity revealed that it had crossed the 1-million daily active-player mark.

This 1-million-user milestone announcement offers a glimpse into Axie’s growing popularity within a short space of time. Just as the Axie token price has grown 18-fold since early June, the game’s userbase has also grown 1,000% within the same period. Such is the extent of the increasing allure of the play-to-earn NFT gaming wave that AXS and other similar tokens have bucked the crypto price decline trend in place since mid-May.

Axie’s significant growth over the last two months has lifted the NFT game to become one of the most valuable crypto projects in the industry. As of the time of writing, AXS sits in the top-40 cryptocurrency assets by market capitalization, with price action trends indicating a possible move beyond the $100 mark in the near term — a move that will put the token’s year-to-date performance north of 18,700%.

The microeconomics of play-to-earn

Many crypto and blockchain use cases are often posed with the “mainstream adoption” problem — the path via which their novel protocols and operations will achieve broad-based interest from within and without the masses of the cryptocurrency space. For nonfungible tokens, play-to-earn gaming might be the key to reshaping the narrative around digital collectibles and blockchain gaming.

For one, the ability to earn rewards in the form of crypto for playing games likely creates economic incentives for would-be adopters, be they casual or hardcore gamers. There is even data to suggest that titles like Axie Infinity are becoming an occupation of sorts for the younger demographic, especially those living in countries impacted by the current economic downturns occasioned by COVID-19.

Related: ‘I am a wonder’: An interview with an Axie Infinity NFT

Back in May, Cointelegraph reported that an Axie Infinity player from the Philippines was able to become a homeowner from the proceeds generated by playing the NFT game. The Philippines has accounted for almost half of the total global web traffic to the platform as of July, with the website ranked as the 33rd most popular in the country, according to data from Similarweb.

Developed by Sky Mavis, a Vietnam-based gaming studio, Axie Infinity is popular across Southeast Asia. The NFT gaming title also has considerable patronage from South America, especially in Argentina and Brazil.

Since the summer of 2020, play-to-earn NFT games seem to have taken a life of their own, drawing interest from more gaming patrons. This steadily increasing interest, coupled with the NFT mania of the current times, has probably contributed to catapulting such blockchain gaming titles to even greater heights.

In a conversation with Cointelegraph, Dragos Dunica, co-founder of decentralized application analytics platform DappRadar, commented on the confluence of decentralized finance (DeFi) and gaming, stating:

“Right now, we are seeing a convergence of DeFi mechanics and gaming mechanics to drive interactions and usage. The most popular titles are creating environments where users can not only take ownership of a unique NFT but also leverage that within the same platform for a reward.”

According to Dunica, the current trend is the start of a “real revolution” in gaming and decentralized application (DApps), which will likely flow into mainstream games. “The notion of in-game items as tradable NFTs, for example, will be a real game-changer moving forward,” Dunica added.

Data from DappRadar’s Axie Infinity dashboard puts the game’s all-time volume at about $1.4 billion from more than 3.1 million sales. The gaming platform has also amassed over 416,300 traders since its inception.

Nonfungible transformation: A new virtual existence

The popularity of blockchain-based play-to-earn games also likely offers another window to examine how NFTs seem to be transforming digital interaction. As Craig Russo, director of innovation at NFT vault and marketplace protocol PolyientX, told Cointelegraph:

“Play-to-earn is a high-potential area within the NFT space, and we’re already seeing some great market validation, which has resulted in a price surge across most gaming-related tokens. However, play-to-earn gaming is very niche, and substantial inroads into the mainstream gaming ecosystem will be required before the level of adoption rivals that of non-blockchain gaming segments such as esports.”

Both Russo and Dunica stated their expectation for NFT gaming, especially the play-to-earn variety, to become an integral part of the developing metaverse, with Russo stating, “I believe play-to-earn gaming will be one of the major pillars of the emerging metaverse.”

According to Russo, NFTs and the broader DeFi space have the potential for broad-based interaction:

“A user’s ability to earn into token economy cash flows by putting work into a game will be a fundamental driver of this new virtual existence. I am particularly interested in the crosstalk between NFTs and DeFi, which will fuel the next major growth inflection point for the NFT market.”

He said that projects like Ape In, an NFT-driven virtual world, are already focusing on a “consumer-friendly” approach to DeFi by introducing features such as staking for in-game characters. For Russo, such steps to improve NFT liquidity will help to transform nonfungible tokens into more productive assets, further expanding their on-chain utility.

Related: Blockchain games have struggled to compete with traditional titles… until now

For Dunica, the transition to a digital lifestyle is happening at an accelerated pace, telling Cointelegraph, “The idea of spending time in a virtual environment is not as strange as it once was.” 

Thus, given the growth of platforms like Axie Infinity and the ownership retention potential offered to gamers, NFT play-to-earn games might offer the conduit for the “first real mass adoption use case in the blockchain space.” 

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Southwest and United Airlines have bad news for passengers

Both airlines are facing the same problem, one that could lead to higher airfares and fewer flight options.

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Airlines operate in a market that's dictated by supply and demand: If more people want to fly a specific route than there are available seats, then tickets on those flights cost more.

That makes scheduling and predicting demand a huge part of maximizing revenue for airlines. There are, however, numerous factors that go into how airlines decide which flights to put on the schedule.

Related: Major airline faces Chapter 11 bankruptcy concerns

Every airport has only a certain number of gates, flight slots and runway capacity, limiting carriers' flexibility. That's why during times of high demand — like flights to Las Vegas during Super Bowl week — do not usually translate to airlines sending more planes to and from that destination.

Airlines generally do try to add capacity every year. That's become challenging as Boeing has struggled to keep up with demand for new airplanes. If you can't add airplanes, you can't grow your business. That's caused problems for the entire industry. 

Every airline retires planes each year. In general, those get replaced by newer, better models that offer more efficiency and, in most cases, better passenger amenities. 

If an airline can't get the planes it had hoped to add to its fleet in a given year, it can face capacity problems. And it's a problem that both Southwest Airlines (LUV) and United Airlines have addressed in a way that's inevitable but bad for passengers. 

Southwest Airlines has not been able to get the airplanes it had hoped to.

Image source: Kevin Dietsch/Getty Images

Southwest slows down its pilot hiring

In 2023, Southwest made a huge push to hire pilots. The airline lost thousands of pilots to retirement during the covid pandemic and it needed to replace them in order to build back to its 2019 capacity.

The airline successfully did that but will not continue that trend in 2024.

"Southwest plans to hire approximately 350 pilots this year, and no new-hire classes are scheduled after this month," Travel Weekly reported. "Last year, Southwest hired 1,916 pilots, according to pilot recruitment advisory firm Future & Active Pilot Advisors. The airline hired 1,140 pilots in 2022." 

The slowdown in hiring directly relates to the airline expecting to grow capacity only in the low-single-digits percent in 2024.

"Moving into 2024, there is continued uncertainty around the timing of expected Boeing deliveries and the certification of the Max 7 aircraft. Our fleet plans remain nimble and currently differs from our contractual order book with Boeing," Southwest Airlines Chief Financial Officer Tammy Romo said during the airline's fourth-quarter-earnings call

"We are planning for 79 aircraft deliveries this year and expect to retire roughly 45 700 and 4 800, resulting in a net expected increase of 30 aircraft this year."

That's very modest growth, which should not be enough of an increase in capacity to lower prices in any significant way.

United Airlines pauses pilot hiring

Boeing's  (BA)  struggles have had wide impact across the industry. United Airlines has also said it was going to pause hiring new pilots through the end of May.

United  (UAL)  Fight Operations Vice President Marc Champion explained the situation in a memo to the airline's staff.

"As you know, United has hundreds of new planes on order, and while we remain on path to be the fastest-growing airline in the industry, we just won't grow as fast as we thought we would in 2024 due to continued delays at Boeing," he said.

"For example, we had contractual deliveries for 80 Max 10s this year alone, but those aircraft aren't even certified yet, and it's impossible to know when they will arrive." 

That's another blow to consumers hoping that multiple major carriers would grow capacity, putting pressure on fares. Until Boeing can get back on track, it's unlikely that competition between the large airlines will lead to lower fares.  

In fact, it's possible that consumer demand will grow more than airline capacity which could push prices higher.

Related: Veteran fund manager picks favorite stocks for 2024

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Simple blood test could predict risk of long-term COVID-19 lung problems

UVA Health researchers have discovered a potential way to predict which patients with severe COVID-19 are likely to recover well and which are likely to…

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UVA Health researchers have discovered a potential way to predict which patients with severe COVID-19 are likely to recover well and which are likely to suffer “long-haul” lung problems. That finding could help doctors better personalize treatments for individual patients.

Credit: UVA Health

UVA Health researchers have discovered a potential way to predict which patients with severe COVID-19 are likely to recover well and which are likely to suffer “long-haul” lung problems. That finding could help doctors better personalize treatments for individual patients.

UVA’s new research also alleviates concerns that severe COVID-19 could trigger relentless, ongoing lung scarring akin to the chronic lung disease known as idiopathic pulmonary fibrosis, the researchers report. That type of continuing lung damage would mean that patients’ ability to breathe would continue to worsen over time.

“We are excited to find that people with long-haul COVID have an immune system that is totally different from people who have lung scarring that doesn’t stop,” said researcher Catherine A. Bonham, MD, a pulmonary and critical care expert who serves as scientific director of UVA Health’s Interstitial Lung Disease Program. “This offers hope that even patients with the worst COVID do not have progressive scarring of the lung that leads to death.”

Long-Haul COVID-19

Up to 30% of patients hospitalized with severe COVID-19 continue to suffer persistent symptoms months after recovering from the virus. Many of these patients develop lung scarring – some early on in their hospitalization, and others within six months of their initial illness, prior research has found. Bonham and her collaborators wanted to better understand why this scarring occurs, to determine if it is similar to progressive pulmonary fibrosis and to see if there is a way to identify patients at risk.

To do this, the researchers followed 16 UVA Health patients who had survived severe COVID-19. Fourteen had been hospitalized and placed on a ventilator. All continued to have trouble breathing and suffered fatigue and abnormal lung function at their first outpatient checkup.

After six months, the researchers found that the patients could be divided into two groups: One group’s lung health improved, prompting the researchers to label them “early resolvers,” while the other group, dubbed “late resolvers,” continued to suffer lung problems and pulmonary fibrosis. 

Looking at blood samples taken before the patients’ recovery began to diverge, the UVA team found that the late resolvers had significantly fewer immune cells known as monocytes circulating in their blood. These white blood cells play a critical role in our ability to fend off disease, and the cells were abnormally depleted in patients who continued to suffer lung problems compared both to those who recovered and healthy control subjects. 

Further, the decrease in monocytes correlated with the severity of the patients’ ongoing symptoms. That suggests that doctors may be able to use a simple blood test to identify patients likely to become long-haulers — and to improve their care.

“About half of the patients we examined still had lingering, bothersome symptoms and abnormal tests after six months,” Bonham said. “We were able to detect differences in their blood from the first visit, with fewer blood monocytes mapping to lower lung function.”

The researchers also wanted to determine if severe COVID-19 could cause progressive lung scarring as in idiopathic pulmonary fibrosis. They found that the two conditions had very different effects on immune cells, suggesting that even when the symptoms were similar, the underlying causes were very different. This held true even in patients with the most persistent long-haul COVID-19 symptoms. “Idiopathic pulmonary fibrosis is progressive and kills patients within three to five years,” Bonham said. “It was a relief to see that all our COVID patients, even those with long-haul symptoms, were not similar.”

Because of the small numbers of participants in UVA’s study, and because they were mostly male (for easier comparison with IPF, a disease that strikes mostly men), the researchers say larger, multi-center studies are needed to bear out the findings. But they are hopeful that their new discovery will provide doctors a useful tool to identify COVID-19 patients at risk for long-haul lung problems and help guide them to recovery.

“We are only beginning to understand the biology of how the immune system impacts pulmonary fibrosis,” Bonham said. “My team and I were humbled and grateful to work with the outstanding patients who made this study possible.” 

Findings Published

The researchers have published their findings in the scientific journal Frontiers in Immunology. The research team consisted of Grace C. Bingham, Lyndsey M. Muehling, Chaofan Li, Yong Huang, Shwu-Fan Ma, Daniel Abebayehu, Imre Noth, Jie Sun, Judith A. Woodfolk, Thomas H. Barker and Bonham. Noth disclosed that he has received personal fees from Boehringer Ingelheim, Genentech and Confo unrelated to the research project. In addition, he has a patent pending related to idiopathic pulmonary fibrosis. Bonham and all other members of the research team had no financial conflicts to disclose.

The UVA research was supported by the National Institutes of Health, grants R21 AI160334 and U01 AI125056; NIH’s National Heart, Lung and Blood Institute, grants 5K23HL143135-04 and UG3HL145266; UVA’s Engineering in Medicine Seed Fund; the UVA Global Infectious Diseases Institute’s COVID-19 Rapid Response; a UVA Robert R. Wagner Fellowship; and a Sture G. Olsson Fellowship in Engineering.

  

To keep up with the latest medical research news from UVA, subscribe to the Making of Medicine blog at http://makingofmedicine.virginia.edu.


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Looking Back At COVID’s Authoritarian Regimes

After having moved from Canada to the United States, partly to be wealthier and partly to be freer (those two are connected, by the way), I was shocked,…

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After having moved from Canada to the United States, partly to be wealthier and partly to be freer (those two are connected, by the way), I was shocked, in March 2020, when President Trump and most US governors imposed heavy restrictions on people’s freedom. The purpose, said Trump and his COVID-19 advisers, was to “flatten the curve”: shut down people’s mobility for two weeks so that hospitals could catch up with the expected demand from COVID patients. In her book Silent Invasion, Dr. Deborah Birx, the coordinator of the White House Coronavirus Task Force, admitted that she was scrambling during those two weeks to come up with a reason to extend the lockdowns for much longer. As she put it, “I didn’t have the numbers in front of me yet to make the case for extending it longer, but I had two weeks to get them.” In short, she chose the goal and then tried to find the data to justify the goal. This, by the way, was from someone who, along with her task force colleague Dr. Anthony Fauci, kept talking about the importance of the scientific method. By the end of April 2020, the term “flatten the curve” had all but disappeared from public discussion.

Now that we are four years past that awful time, it makes sense to look back and see whether those heavy restrictions on the lives of people of all ages made sense. I’ll save you the suspense. They didn’t. The damage to the economy was huge. Remember that “the economy” is not a term used to describe a big machine; it’s a shorthand for the trillions of interactions among hundreds of millions of people. The lockdowns and the subsequent federal spending ballooned the budget deficit and consequent federal debt. The effect on children’s learning, not just in school but outside of school, was huge. These effects will be with us for a long time. It’s not as if there wasn’t another way to go. The people who came up with the idea of lockdowns did so on the basis of abstract models that had not been tested. They ignored a model of human behavior, which I’ll call Hayekian, that is tested every day.

These are the opening two paragraphs of my latest Defining Ideas article, “Looking Back at COVID’s Authoritarian Regimes,” Defining Ideas, March 14, 2024.

Another excerpt:

That wasn’t the only uncertainty. My daughter Karen lived in San Francisco and made her living teaching Pilates. San Francisco mayor London Breed shut down all the gyms, and so there went my daughter’s business. (The good news was that she quickly got online and shifted many of her clients to virtual Pilates. But that’s another story.) We tried to see her every six weeks or so, whether that meant our driving up to San Fran or her driving down to Monterey. But were we allowed to drive to see her? In that first month and a half, we simply didn’t know.

Read the whole thing, which is longer than usual.

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