Blockchain Gaming Sees Decline in Investment, but Active Wallets Grow
The blockchain gaming sector has been affected by the wider bear market, leading to criticism of existing models and the utility of most projects. In Q3 2023, the total investment in blockchain gaming reached $600 million, bringing the total for the year to $2.3 billion, according to crypto analytics firm DappRadar.
However, this represents a 38% decline in investments compared to Q2 2023, indicating a poor run for the industry. Despite this, there was a 12% growth in average daily active wallets for the previous quarter, with an average of 786,766 active wallets.
Decentralized virtual world applications also experienced high trading volumes, with 28,000 land sales totaling $12 million. The industry has faced challenges such as layoffs and reduced investments due to declining figures.
Web3 Games Analysis
In terms of gameplay and transaction volume, Alien Worlds remained the most popular blockchain game in the last quarter. Axie Infinity led in terms of gaming transaction volume, with $90 million in sales, followed by Gods Unchained at $55 million.
Axie Infinity’s co-founder, Jeffrey Zirlin, highlighted that there is still fierce competition in the blockchain gaming space with many titles yet to be released. He praised Axie Infinity’s development so far and mentioned that players are rewarded with $472,000 worth of AXS tokens every season for six weeks through tournaments and community-inspired initiatives.
Positivity Amidst the Bear Market
Zirlin sees potential for the industry to evolve and improve its operations during bear market periods. He believes that challenging times are necessary for innovation and finding the next big thing. The DappRadar report also emphasizes the need for adaptability and foresight in the ever-evolving domain of blockchain gaming.
Hot Take: Blockchain Gaming Faces Challenges, but Active Wallets Show Growth Potential
The blockchain gaming sector has encountered setbacks due to the bear market, leading to decreased investments and criticism of existing models. However, there is still optimism within the industry as active wallets continue to grow. Despite declining figures, decentralized virtual world applications have seen high trading volumes. Alien Worlds and Axie Infinity remain popular games in terms of gameplay and transaction volume. While challenges persist, players are being rewarded with tokens, fostering community engagement. The bear market is viewed as an opportunity for the industry to evolve and improve its operations. Adaptability and foresight are crucial for success in the ever-changing landscape of blockchain gaming.
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