© Reuters Blockchain Gaming is Braving the Cryptocurrency Bear Market, DappRadar Reports
The latest report from DappRadar claims that blockchain games are braving the crypto winter with their upward trend. With almost a million unique active wallets daily, the gaming sector exhibited an upward trend in July 2022.
Games dominate the blockchain
As the report highlights, gaming accounted for up to 60% of blockchain activity in July.
Here are the highlights from the report:
- Gaming in July saw approximately one million daily unique active wallets (UAWs). The number rose to 57.3%, up from 52% monthly, which reportedly marks an upward trend.
- Along with this, the value of the transactions carried out in this segment was recorded at $857 million.
- Successful blockchain games showed a tendency to retain players, indicating genuine engagement.
The report goes on to highlight that blockchain and metaverse gaming have consistently secured increasing levels of venture capital.
DappRadar x BGA Gaming Reports
DappRadar, in collaboration with BGA Games, recently published an exclusive report on blockchain games.
Here are some quick highlights from this report using data collected in May 2022):
- Splinterlands topped the list of users with 350,000 daily unique active wallets, a number that defies the general bear market.
- Illuvium made its first land sale, which brought in $72 million.
- STEPN, a Move to Earn project, reached the milestone of 2 million monthly users.
- The Web 3.0 and metaverse projects raised about $1.4 billion in investments.
Released on June 20, the report claimed that the blockchain gaming vertical was vastly outperforming the crypto winter.
What else does the report say?
The report also sheds light on other notable trends in the industry:
- For the first time since June 2021, NFTs failed to maintain a $1 billion turnover.
- New entrants like GameStop (NYSE:) and Nickelodeon NFT Marketplaces could give OpenSea a run for their money. Although OpenSea remains the largest marketplace in the space, its market share has fallen to 58.6%, down from the dominant 84%.
- The DeFi sector has started to recover from the Teraa (LUNA) disaster, posting a 22% surge to reach $82.3 billion in total value locked in the past month.
In the reverse
- Despite the rise in transaction volumes and UAWs, high entry costs commonly serve as a barrier to entry for blockchain games, with the largest games often requiring significant investment before becoming truly profitable.
- This issue could be fixed once there is a wider variety of high-quality games competing to attract users. Additionally, newer games with sustainable and scalable models can serve to beat the trend of “diminishing returns” seen in the current generation of games in the long run.
why should you care
- With blockchain games securing more and more venture capital investments, the P2E space appears to be delivering on its promise.
- It should also be noted that traditional gaming giants like Square Enix and Epic Games are also investing in NFTs and their integration with video games. The recent surge in investment may be a reflection of this.
- P2E games are seeing a steady increase in their daily user base, while the most popular games maintain their user base. This could indicate that the return on initial investments is good and the quality of the game provided is improving.
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