In January of this year, the blockchain gaming sector experienced explosive growth, with a significant increase in the number of active users. The author of this article is [email protected]
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Table of Contents
Market Review for the Month
Overview of the Blockchain Gaming Market
Public Chain Data for Blockchain Games
Overview of Blockchain Games
Monthly Active Games
Investment and Financing Situation for Blockchain Games
News for this Month
Blockchain games are continuously integrating AI technology to enhance player experience and expand their service scope. The compatibility issue between public chains and games is also receiving increasing attention. Technological innovations are gradually changing the landscape of the blockchain gaming industry.
The enthusiasm of the capital market for blockchain games continues to rise, indicating the broad prospects of this field. However, it should be noted that investors remain cautious. In order to attract potential investors, the gaming industry needs more tangible performance data.
This report is based on data from Footprint’s Web3 Game research page. This is an easy-to-use dashboard that provides the most important statistics and indicators for the Web3 gaming industry and is updated in real-time. You can click here to learn more about the latest information on prices, projects, financing, etc.
Within 2024, both Bitcoin and Ethereum continue to show an upward trend. On February 13th, Bitcoin reached the $50,000 milestone.
In January, the debut of the US spot Bitcoin ETF marked a key moment for the cryptocurrency market. These ETFs quickly attracted investors’ attention with a daily trading volume of up to $210 million, reflecting the deeper integration of cryptocurrencies into the traditional financial ecosystem. Despite the high market excitement, the prices of Bitcoin and Ethereum remain relatively stable, indicating that traders are still cautious after the ETF approval.
At the same time, the broader cryptocurrency market’s focus has shifted towards exploring the synergies between the cryptocurrency industry and AI. With the Federal Reserve’s decision to maintain stable interest rates, the market value of stablecoins has been steadily increasing. This period marks a delicate evolution in the cryptocurrency field, reflected in the institutional adoption of the approved Bitcoin ETF and the balanced considerations of macroeconomic and technological development expectations.
In January 2024, according to statistics from Footprint Analytics, the average number of active users in the blockchain gaming sector increased by 54.67% compared to the annual average level of 2023, with the growth trend starting from November 2023. At the same time, the average number of active users in January increased by 14.42% compared to December. However, despite the significant increase in user engagement and interest, the market is still affected by the previous bear market, and the trading volume and transaction value in January have not fully recovered to the levels of the same period last year.
The blockchain gaming industry is rapidly introducing artificial intelligence technology to generate images and enhance player experience. For example, Square Enix uses AI image generation tool Midjourney for character design in its new game, helping create visually rich and interactive game environments. Nvidia also mentioned Ubisoft’s use of AI technology to create more realistic and immersive non-player characters, demonstrating the trend of the gaming industry’s efforts towards deeper immersive experiences.
The blockchain gaming industry is also committed to improving transaction processing capabilities to promote market growth, enhance game quality, and stability. Solana network experienced congestion issues during the Jupiter airdrop event, exposing shortcomings in transaction processing. The game Crypto Unicorns had to switch from the Polygon network to Arbitrum’s Xai network due to the increased fuel costs on Polygon, resulting in increased operating costs and compromised player experience.
According to the ranking of player activity, Ronin, Near, and BNB Chain have become the platforms with the most 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 at the forefront.
In January, Ronin’s trading volume and active user count experienced a sharp increase, with a 213.41% surge compared to December. This growth can be attributed to the continuous improvement of the platform and the expansion of its ecosystem. Ronin’s gaming wallet added support for mainstream blockchains such as Ethereum, Polygon, and BNB Chain, and also saw increased activity on the platform through airdrop events for projects such as Pixels and Apeiron.
With the development of the gaming industry, new blockchain infrastructures are being designed to meet its specific needs. Key players in the industry are leading the development of innovative infrastructure. One notable example is TreasureDAO, which is a prominent player focusing on blockchain for gaming and is striving to develop its own public chain. Additionally, BNB Chain’s NFT marketplace Tabi is set to launch Tabi Chain on Cosmos, focusing on the gaming field.
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 users (unique wallets/addresses) decreased from 11% to 8%. The data indicates that although the number of games has increased, there has not been a synchronous improvement in quality.
Jon Jordan’s extensive list of blockchain games reveals the high volatility of the blockchain gaming industry. In 2023, 407 games out of 1,322 (31%) ceased operations due to financial pressure and market challenges. Regulatory uncertainties have further complicated the situation.
Despite the numerous challenges, the blockchain gaming industry continues to make progress. Animoca Brands has launched a decentralized international chess game called Anichess, bringing new vitality to traditional games. Azuki plans to launch a super casual mobile game featuring BEANZ later this year, making a foray into the gaming industry. Yuga Labs is also preparing to release the game Dookey Dash Unclogginged in early 2024.
Three games, Bomb Crypto, Singularity, and Blockchain Brawlers, saw their token values surge by over 200% this month, highlighting not only their long-term commitment to the gaming field but also their ability to retain users even during bear markets.
Other games have also performed exceptionally well. StarryNift emerged as a top performer in terms of attracting new and active users on the BNB Chain, setting a new record for wallet transactions. Yuliverse and Smart Cats had outstanding performances on the Polygon network last month. Additionally, Carv Wallet reported a record high number of transactions.
Web3 social game Forgotten Playland has completed a $7 million seed round of financing.
Arcade2Earn raised $4.8 million in a financing round led by Crypto.com Capital for its P2E platform.
AOFverse raised $3 million from The Arbitrum Foundation.
3A game platform SkyArk Chronicles raised $15 million.
Nebula Revelation raised $4.5 million on January 10, 2024.
Currency monetization platform for Web3 games, 3thix, raised $8.5 million.
Metagame, the developer behind Abyss World, raised funds at a valuation of $100 million.
Little Dragon completed its pre-seed round of funding.
Ta-da completed a $3.5 million financing round and is ready to launch.
Game studio Matr1x Fire 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 not been any particularly high-profile financing events. It is worth mentioning that the AAA-level game platform SkyArk Chronicles successfully raised $15 million. Other notable investments include the upcoming Web3 social game Forgotten Playland and the Ethereum-themed open-world game Nebula Revelation.
Several game 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 Web3 AI data marketplace that raised $3.5 million in financing.
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 field within the cryptocurrency 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.
GameStop is shutting down its NFT marketplace.
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