Not long ago, experts calculated the volumes of venture investments in the gaming segment of the crypto business. It turned out that within a span of three months (from July to September of this year), over $600 million was attracted into this sphere.
According to the analytical platform DappRadar, the blockchain gaming industry has gained an average of $2.3 billion since the beginning of 2023. While this sounds impressive, it's only 30% of the final amount from the year 2022. Experts note that external market conditions play a significant role here.
Crypto analysts have traced a dynamic in the gaming market in 2023. Let's delve deeper into it in this new material.
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Web3 gaming industry
Blockchain games gained popularity due to the creation of their own decentralized system with internal currency and earning opportunities. Players could interact with each other, make transactions, and exchanges without the involvement of centralized authorities such as development studios, publishers, banks, etc.
A new model emerged in the technological market – Play-to-Earn (P2E) technology, enabling players to earn cryptocurrency and NFT tokens. The pioneering games in this direction were Alien Worlds and Splinterlands. They still remain leaders in terms of popularity.
However, recently, new platforms like TreasureDAO have emerged, and the Play-to-Earn concept found a competitor – Move-to-Earn projects. In 2023, as analysts report, activity on blockchain gaming platforms increased by 12%.
Top 5 most popular blockchain games
Analyzing the gaming market reveals 5 leaders that, based on transaction volumes, have the potential to dominate the industry.
This blockchain game gained popularity back in 2021. Its essence lies in breeding virtual pets, which are digitized NFT models. Players can buy, sell, exchange, and store these pets, engaging in full-fledged entrepreneurship within the confines of a computer game.
In June 2021, in-game NFT sales amounted to over $42 million. In 2023, this figure rose to $90 million. Currently, one AXS token (the game's native token) is approximately worth $4 USD.
- Gods Unchained
Launched in 2019 on the Ethereum blockchain, this game has generated over $55 million for its developers. It presents a fantasy world where all actions are executed using cards. Players quickly noticed its resemblance to the popular offline card game Hearthstone by Blizzard, which has a massive fan base.
- TreasureDAO
A new crypto project positioned itself not just as a simple NFT game but as something more significant. At first glance, TreasureDAO doesn't differ from conventional NFT ecosystems like Axie Infinity. However, the developers reveal a new approach to blockchain gaming. They intend to create an entire metaverse, with TreasureDAO being just one part of it.
The game's main partner is the Arbitrum blockchain, a second-layer blockchain based on Ethereum, making it the most technologically advanced and progressive choice available today. Thanks to this, TreasureDAO automatically gains immense potential, making it more appealing to investors interested in long-term projects.
- DeFi Kingdoms
A fantasy blockchain game in MMORPG format built on the DeFi protocol. This extensive project combines DeFi and NFT mechanics, weaving them into a unified ecosystem. DeFi Kingdoms is governed by the players themselves, who sustain its economic foundation. The game operates on the Harmony blockchain, with a market capitalization of around $13 million.
- Alien Worlds
Closing the top five is the blockchain game project Alien Worlds, operating simultaneously on Ethereum, Binance Smart Chain (BSC), and WAX platforms. Its native token TLM can be used across all three networks. Earnings in the game come from TLM mining and NFT trading. The entry barrier is significantly lower than in Axie Infinity, attracting a larger percentage of young users.
Alien Worlds' success lies in its rapid development. Developers keep an eye on market trends, promoting their project and attracting more new users. In April 2021, they partnered with the Binance platform, further enhancing their reach.
Is it worth investing in the blockchain gaming industry in 2023?
Investing in the blockchain gaming industry in 2023 could be justified, despite the peak of their popularity being in 2021. Analysts assert that this sector still holds promising development prospects. Although the overall trading volume has decreased, interest in metaverses and new gaming projects persists.
Several factors confirm the positive trend in the Web3 gaming sphere:
- Attractive investment opportunities. New projects like Proof-of-Play continue to attract investments.
- Venture capital support. Venture capital companies such as Andreessen Horowitz (a16z) and Haun Ventures, focusing on gaming infrastructure and metaverse technologies, are creating funds with significant amounts to invest in promising projects.
- Resilience to external factors. The gaming segment of the crypto business remains resilient despite external economic fluctuations. While the overall market capitalization might decrease due to general market trends, it does not necessarily imply a decline in interest in the games themselves.
Considering these factors, investors may consider investments in the blockchain gaming industry as potentially promising. However, as with any investment decision, it is important to conduct thorough research and consider one's individual financial status and goals before making a final decision.
If you want to learn more interesting facts about crypto then check out our blog! You might like our articles “Web3 Appchains Explained” and “Crypto Trading Psychology”.
