The blockchain gaming sector experienced a downturn in numbers amid the broader bear market, prompting criticism of existing models and the perceived utility of many projects.
In Q3 2023, the total investment in the sector amounted to $600 million, bringing the total for the year to $2.3 billion, as reported by crypto analytics firm DappRadar.
However, the figures for the last three months revealed a 38% contraction in the market in terms of investments, down from $873 million in Q2 2023. This year’s total inflows represent only 30% of the previous year, indicating a challenging performance.
Despite the reduced participation of institutional investors, the industry achieved an average of 786,766 daily active wallets, marking a 12% growth from the preceding quarter.
Decentralized virtual world applications saw a surge in trading volumes, with 28,000 land sales amounting to $12 million.
Despite recent turmoil in the industry, marked by declining figures resulting in layoffs, slow market adoption, and reduced investments, there are indications of a gradual return to the market. Traditional players foresee a potential resurgence, particularly with recent developments in many projects, especially those associated with gaming-centric investment companies.
Web3 games analysis
Alien Worlds retained its position as the most played blockchain game in the last quarter, determined by monitoring wallet activities on top platforms across various networks.
In terms of gaming transaction volume, Axie Infinity took the lead with sales reaching $90 million, followed by Gods Unchained at $55 million. Both games employed community engagement tools and rewards to drive development.
Jeffrey Zirlin, the co-founder of Sky Mavis, the team behind Axie Infinity, highlighted the ongoing competitiveness of the blockchain gaming space, emphasizing the multitude of titles yet to be released. Zirlin commended Axie’s development and mentioned that Sky Mavis rewards players with $472,000 worth of AXS tokens every season for six weeks, which includes tournaments and other community-inspired initiatives.
Positivity amid the bear market
According to Zirlin, “Bear market hard times—that’s needed for evolution. You cannot evolve when you’re going through a great boom. You will change in other ways, but in terms of figuring out the next thing that’s what these times are for.”
This perspective aligns with the report’s conclusion, which emphasizes the necessity for adaptability and foresight in the ever-evolving domain of blockchain gaming. Despite the challenges posed by plunging figures, the report indicates that the growth trajectory of blockchain gaming remains largely positive.