According to cointelegraph, in a lately published report, researcher Mason Nystrom argues that fantasy sports are primed for remarkable growth because of COVID-19. Nystrom explains:
“While the peak culmination of esports and cryptonetworks waits for improvements in emerging technology and 5G connectivity, blockchain-based fantasy sports are poised for consumer adoption.”
Adducing PwC research, Nystrom mentions betting and fantasy sports are expected to increase 7.2% over the next three to five years.
Unlike traditional sports betting, wagering on fantasy sports is when you assemble a fantasy team and compete against opponents for a cash prize.
The need to digitize the sporting experience has taken on great importance after the spread of COVID-19 led to a drastic reduction in viewership revenue. With huge indoor gatherings unlikely to return until at least 2022, the industry is looking for new ways in order to increase user engagement.
Blockchain-based applications can be used as a foundation for digital ownership and monetization, with platforms such as Ethereum offering a high level of trust. The trade-off right now, Messari states, is a poor user experience because if you lose your assets, they are gone induringly. Fantasy games built on top of the blockchain operate by selling nonfungible tokens (NFTs), that apparently raise the value based on how real athletes perform.
The top three crypto fantasy sports, Sorare, MLB Champions and NBA Top Shot, have already amassed over $10 million in sales. Sorare and MLB Champions are built on Ethereum, while NBA Top Shot resides on the Flow blockchain.