The Rise And Fall Of Cryptokitties And How It Affected Ethereum

Do you remember when CryptoKitties debuted in 2017 and was one of the contenders that started the popular trend of mining crypto via a video game? How did the game succeed in its early days? How is the game performing now? We will answer all these questions and more below.

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What Are CryptoKitties?

CryptoKitties are virtual NFTs that you purchase utilizing Ethereum tokens. Roham Gharegozlou is the current CEO of the company and Jack Pickett, Jordan Schalm, and Fabio Kenji are gaming developers of the platform. The entire team has special abilities that have made the game a success.

As you breed CryptoKitties amongst one another in your collection, you can create different-looking cat-like creatures. Each of these virtual kitties has special genetic traits that are called cattributes. There are 12 of them that parents can pass to their children when breeding.

The cats are essentially genderless, but they act as either a sire or a matron while mating. As one cat continually engages in breeding, their cooldown time will lengthen before it can mate again.

You can look at the collection of virtual kitties on your CryptoKitties account. There is no navigating an open-world game interacting with other cats. The object of the game is to only purchase the cats of your choice, breed them, and trade some with other wallet owners connected to the platform.

How It Succeeded During Origination

CryptoKitties was known as the first game where you can use Ethereum to purchase NFTs in the world. Ever since it originated, CryptoKitties has spiked purchase transactions of Ethereum by six times its original volume.

When the game was at its height of popularity, individuals buying the CryptoKitties in the game accounted for about one-quarter of the transactions conducted on the Ethereum network. Because of the demand shown via increased transactions in the game, the value of Ethereum increased by over four times its original value of $300 in late 2017 to about $1,360 in early 2018 over only three months.

Why are CryptoKitties Less Prominent Now?

The game did well in raising the value of Ethereum. However, new players were less interested in purchasing the kitty NFTs because now they would have to spend more Ethereum in value to own them.

As of April 2023, Ethereum is close to $2,000 for each token with a market value of about $1,916.32. Hence, it increased by another $556 since it last jumped by four times its original value during 2017 going into 2018.

Because there are now more than two million cats in this game, their specialty and rarity of the NFT have drastically decreased. The gas fees associated with the rise of Ethereum transactions have hindered new players from wanting to invest in these virtual kitty NFTs. The heightened gas fees have influenced the overall downfall of the Ethereum blockchain. Not as many individuals want to buy into the tokens because of their high value for each one.

What Are the Creators of CryptoKitties Doing Now?

Dapper Labs is the creator of CryptoKitties. The downfall of the once booming game six years ago has not ceased the company from making new strides in the NFT and crypto industries.

The company launched a website called NBA Top Shot in 2020 in partnership with the National Basketball Association. The platform allows clients to buy basketball game clips sourced from well-known video games of the sports franchise.

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