Blockchain Gaming Awards Ceremony 2022
Blockchain Gaming Awards Ceremony 2022
On May 13th, Line announced its plans to release five ‘gamer first’ NFT games in 2023. As we can see, more developers and more gamesare appearing, showing that web3 games are struggling to expand beyond speculation. However, transaction volumes have declined and user numbers initially fell, indicating that sustainable games that focus on fun, strong communities, and mass appeal remain scarce.
Sustainable games that do not focus on hype still remain rare. Good games depend on fun, strong communities and mass appeal — not quick profits.
Data of this report was obtained from Footprint’s GameFi research page. An easy-to-use dashboard containing the most vital stats and metrics to understand the Web3 Game industry, updated in real-time, you can find all the latest about prices, projects, funding rounds, and more by clicking here.
BTC opened the month of May at $28,074, peaked on May 5 at $29,528, and turned down to $27,223 on May 31. For the month as a whole, bitcoin was down slightly by 0.5%.
However, BTC as a marketing indicator, is still up more than 64% year-to-date, compared to its price of $16,605 on Jan. 1. ETH is following the same trend, down less than 1% in May, and up 58% year-to-date in 2023.
Market players shouldn’t have a false feeling of security as a result of the current quiet in the volatility of Bitcoin and ETH. Specifically, BTC saw a significant 13.3% drop in on-chain volume, indicating a decrease in trading activity on Bitcoin Network.
The Web3 Game market experienced a slowdown in May, likely due to uncertainties in the overall cryptocurrency market and global economy.
According to Footprint Analytics, daily transactions for the entire web3 games market are declining, while users fell sharply at the beginning of the month, recovering slightly by mid-May. The slowdown in growth seems natural and healthy after the initial hype. It allows the industry to consolidate, mature and improve before the next wave of web3 games.
Game developers haven’t slowed down. The total number of active games increased slightly to 1,004 by the end of May, compared to 979 in March and 1001 in April, indicating that more games are in users’ eyesights. The number of new GameFi projects launched in May increased slightly to 60, bringing the total number of games in the market to 2381.
The number of new games launched rebounded in May, but at a more moderate pace. As the novelty effect of GameFi wears off, higher quality games with solid gameplay and token economics may gain more traction and lead a new wave of growth.
In the web3 games market, BNB Chain, Ethereum and Polygon are the dominant players, accounting for 75% of the total games available.
Daily active users remained at around 900k, with Polygon users experienced a significant spike in late April and early May, followed by a return to normal levels. This indicates that Polygon attracted a temporary influx of users, probably because of some events, but did not get a long-term effect.
The SUI blockchain is poised to make significant progress, as Mysten Labs has raised $300 million in funding and plans to offer high-end games on its Sui Layer 1 blockchain last year. As the SUI blockchain debuted its mainnet on May 3, it is poised to expand its capabilities and potentially offer a compelling blockchain for immersive gaming experiences.
Despite a cyclical downturn for almost 12 months, the web3 gaming industry continues to create and awaits new innovations and breakthroughs to attract more users and investors.
Winter is the time to build in this space.
Fun games keep players engaged for days. While the broader crypto markets remain volatile, high-quality GameFi opportunities with strong fundamentals should perform based on project merit rather than speculative hype or general market sentiment.
According to data from the 31st of May, Axie Infinity continued to be the dominant game in terms of volume, with a trading volume of $6.6 million, demonstrating its strong liquidity and established position in the market. This month, Axie Infinity made notable progress by launching on the Apple App Store in key markets and introducing the ability for users to create unique and customisable PFP avatars, demonstrating its commitment to game development and expanding its user base. Battlefly and Illuvium also saw strong volumes following Axie.
In terms of token price, for May, Zodium has the top token with a 130% increase, followed by Taroverse with a 92% increase and Victoria VR with a 78% increase. However, large price spikes alone don’t determine profitability.
The biggest gainers were not so well-known projects, suggesting that hype and speculation drove the rally rather than strong fundamentals. Rapid price increases alone don’t prove sustainability.
In terms of active users, Alien Worlds had the most active users on 31st May with 233,684, followed by Sweat Wallet with 90,189 and Splinterlands with 74,876, which is very strong in the bear market.
The total amount raised in May was $79.1 million, up 76% from $45 million in the previous month, but the number of rounds fell from 12 to 8 comparing to April, and from 15 in March.
Larger deal sizes reflected investor confidence and recognition of the long-term potential of the industry. However, the total number of funding declined slightly, indicating the market is still in downturn.
The most notable projects are M80, Pomerium and Illuvium, which raised $3m, $20m and $10m respectively, even though overall market sentiment remains subdued. Their progress will be worth watching.
May’s GameFi funding data shows that while the trading markets remain lacklustre, the capital markets’ long-term confidence in blockchain games remains intact. As the market clears and consolidates, the surviving projects are looking more promising.
This piece is contributed by the Footprint Analytics community.
The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.
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