Blockchain gaming experienced explosive growth in the month of January, with a significant increase in the number of active users. This article, written by [email protected], provides an overview of the blockchain gaming market, including data on public blockchain usage, funding, and recent news.
Blockchain gaming is incorporating AI technology to enhance player experiences and expand its services. Compatibility between public chains and games is also receiving increased attention. Technological innovations are gradually transforming the blockchain gaming industry.
The capital market’s enthusiasm for blockchain gaming indicates its vast prospects. However, investors remain cautious, and the gaming industry needs more substantial data performance to attract potential investors.
This report is based on data from Footprint’s Web3 Game research page, which offers an easy-to-use dashboard with the most important statistics and indicators for the Web3 gaming industry, providing real-time updates. For the latest information on prices, projects, funding, and more, click here.
In February 2024, Bitcoin and Ethereum continued their upward trends, with Bitcoin reaching the $50,000 mark on February 13th.
The debut of the US Bitcoin ETF in January marked a key moment for the cryptocurrency market. These ETFs, with a daily trading volume of up to $210 million, quickly attracted investors’ attention, reflecting a deeper integration of cryptocurrencies into the traditional financial ecosystem. Despite the market’s excitement, the prices of Bitcoin and Ethereum remained relatively stable, indicating that traders remained cautious even after the approval of the ETFs.
The broader crypto market has shifted its focus to exploring the synergies between the crypto industry and AI. Stablecoin market capitalization has been steadily rising against the backdrop of the Federal Reserve’s decision to maintain stable interest rates. This period marks a delicate evolution in the crypto field, reflected in both the institutional adoption of the approved Bitcoin ETF and the balanced considerations of macroeconomic and technological developments.
According to statistics from Footprint Analytics, the average number of active users in the blockchain gaming sector in January 2024 increased by 54.67% compared to the annual average in 2023. This growth trend began in November 2023. Additionally, the average number of active users in January increased by 14.42% compared to December. However, despite the increased user engagement and interest, the market is still influenced by the previous bear market, and the trading volume and turnover in January did not fully recover to the same period last year.
The blockchain gaming industry is rapidly adopting AI technology to generate images and enhance player experiences. For example, Square Enix uses the AI image generation tool Midjourney for character design in their new game, creating visually rich and interactive game environments. Nvidia also mentions Ubisoft’s use of AI technology to create more realistic and immersive non-player characters, demonstrating the trend of the gaming industry striving for deeper immersion experiences.
The blockchain gaming industry is also focusing on improving transaction processing capabilities to promote market growth, enhance game quality, and stability. The Solana network faced congestion issues during the Jupiter airdrop event, highlighting shortcomings in transaction processing. The game Crypto Unicorns had increased operational costs and compromised player experiences due to the rising gas fees on the Polygon network, prompting a move to Arbitrum’s Xai network.
According to player activity rankings, Ronin, Near, and BNB Chain are the platforms with the highest number of active users, accounting for 29.9%, 10.2%, and 9% of the total, respectively. In terms of trading volume, BNB Chain, Ronin, and Ethereum are leading the way.
In January, Ronin’s trading volume and active user count experienced a sharp increase, with trading volume increasing by 213.41% compared to December. This growth can be attributed to ongoing platform improvements and the expansion of its ecosystem. Ronin’s game wallet now supports mainstream blockchains such as Ethereum, Polygon, and BNB Chain, and the platform’s activity was further boosted by airdrop events for projects like Pixels and Apeiron.
As the gaming industry develops, new blockchain infrastructures are being designed to meet its specific needs. Key players in the industry are leading the development of innovative infrastructure. For example, TreasureDAO is an intriguing example as a blockchain dedicated to gaming, striving to develop its own public chain. Additionally, BNB Chain’s NFT marketplace, Tabi, is set to launch Tabi Chain on the Cosmos network, focusing on the gaming sector.
The total number of blockchain games increased from 2,081 in January 2023 to 2,877 in January 2024. However, the proportion of games with over 1,000 unique wallet addresses decreased from 11% to 8%. This data indicates that while the number of games is increasing, there is not a synchronous improvement in quality.
Jon Jordan’s extensive list of blockchain games reveals the high volatility of the blockchain gaming industry. In 2023, 31% of games (407 out of 1,322) ceased operations due to financial pressure and market challenges. Regulatory uncertainties further complicate the situation.
Despite the challenges, the blockchain gaming industry is making progress. Animoca Brands has launched a decentralized international chess game called Anichess, bringing new vitality to traditional games. Azuki plans to launch a hyper-casual mobile game featuring BEANZ as the main character later this year, entering the gaming industry. Yuga Labs is also preparing to release the game Dookey Dash Unclogginged in early 2024.
The token values of Bomb Crypto, Singularity, and Blockchain Brawlers have soared over 200% this month, showcasing their long-term commitment to the gaming field and their ability to retain users even in bear markets.
Other games have also performed impressively. In January, StarryNift emerged as a standout on the BNB chain, attracting new and active users and setting a new record for wallet transactions. Yuliverse and Smart Cats performed exceptionally well on the Polygon network last month. Carv Wallet also reported a record high in transaction volume.
Web3 social game Forgotten Playland has completed a $7 million seed funding round. Arcade2Earn raised $4.8 million in a funding round led by Crypto.com Capital for its P2E platform. AOFverse raised $3 million from The Arbitrum Foundation. SkyArk Chronicles, a 3A game platform, raised $15 million. Nebula Revelation raised $4.5 million on January 10th. Currency monetization platform 3thix raised $8.5 million. Metagame, the developer behind Abyss World, secured funding at a valuation of $100 million. Little Dragon completed its seed funding round. Ta-da raised $3.5 million for its launch. Matr1x Fire’s game studio raised $10 million for its NFT mobile shooting game. Mon Studios raised $1.4 million in a funding round.
The gaming industry is gaining popularity, but investments are becoming more rational, and there have been no particularly high funding events. It is worth mentioning that the AAA game platform SkyArk Chronicles successfully raised $15 million. Other notable investments include the upcoming Web3 social game Forgotten Playland and the Ethereum-based open-world game Nebula Revelation, which focuses on space.
Multiple gaming platforms and developers have received funding support, including Arcade2Earn, Abyss World, ArenaX Labs, 3thix, 10n8 Little Dragon, and Ta-da. Ta-da is an entertainment-oriented Web3 AI data market that raised $3.5 million in funding.
Game developers such as AOFverse, Matr1x, and Mon Studios have also received investments. These developments demonstrate the growing interest in applying blockchain technology and Web3 in the gaming industry within the crypto industry.
Animoca Brands collaborates with iCandy to launch Snaky Cat.
Treeverse Studio chooses Immutable zkEVM as the foundation for its NFT game Endless Clouds.
Animoca Brands announces the release of the chess game Anichess.
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