News Article Translation:
February 2024
The blockchain gaming industry has experienced significant growth due to the rise in cryptocurrency prices and an increase in active users. However, the industry still faces challenges in maintaining user engagement and retention, as transaction volume and frequency have not met expectations.
Blockchain platforms are actively seeking partnerships with Web2 game studios and other content creators to seek growth opportunities. Public chains are focusing on the collaborative development between games and platforms, while game developers are committed to expanding game intellectual property to broaden player engagement and enrich the entire ecosystem.
This report data is from the Web3 Game Research page of Footprint Analytics. It is an easy-to-use dashboard that includes the most important statistical data and indicators for the Web3 game industry and is updated in real-time. You can click here to learn about the latest information on prices, projects, financing, etc.
Market Review for the Month
In February 2024, both Bitcoin and Ethereum showed significant growth. Bitcoin surged with a 46.5% increase, reaching a closing price of $62,404, breaking the $60,000 mark for the first time since the fourth quarter of 2021 and coming close to its all-time high by 9%. Ethereum performed even better with a 48.1% increase, reaching a closing price of $3,383.
The significant rise in the cryptocurrency market in February was driven by multiple factors. The US Bitcoin ETF attracted a staggering $6 billion in funds, highlighting investors’ strong confidence in cryptocurrency as an effective store of value. In addition, market expectations for the Ethereum Cancun upgrade in March and the Bitcoin halving event in April further boosted prices. These factors collectively provided strong support for the rise in the cryptocurrency market.
However, broader market dynamics such as inflation concerns and US Federal Reserve policies may pose challenges to continued growth. The rise in the inflation rate in February suggests that the expected rate cut in the US may be delayed until later this year or even later, bringing uncertainty to the continued growth of the cryptocurrency market.
Overview of the Blockchain Gaming Market
With the strong growth of cryptocurrencies, the market value of blockchain gaming tokens soared by 54.0% in February, reaching $18.5 billion.
In February, the number of daily active users (wallets) continued to rise, reaching 2.3 million, a 28.9% increase from January. The relentless efforts of builders in the blockchain gaming industry have successfully attracted more Web2 game studios and players to enter the Web3 gaming field, driving the rapid development of the industry.
However, compared to attracting new users, the situation of user engagement and retention is not as optimistic. Most Web3 game developers still face significant challenges in these two areas, and according to data from Footprint Analytics, the increase in transaction volume and frequency in February did not meet expectations.
In the broader context of the Web3 gaming market, its impact on other blockchain sectors, especially in-game NFTs, is gradually becoming evident. Gas Hero, the second game developed by the StepN team at Find Satoshi Lab, is an illustrative case. The game announced on February 28th that it would return to the closed testing phase due to significant difficulties. Although the trading volume of the Gas Hero NFT series soared after a successful launch in January, the trading volume sharply declined by 87.2% in February. This significant downward trend directly affected Polygon and Mooar (NFT trading market), with a decrease of 80.8% and 87.2% in the trading volume of these two platforms, respectively.
Public Chain Data for Blockchain Games
The game rankings for February show that Ronin, BNB Chain, and Polygon performed well in terms of user activity, occupying 29.1%, 13.4%, and 13.1% of the market share, respectively. In terms of transaction volume, Ethereum, BNB Chain, and Ronin took the lead, demonstrating strong market performance.
Public chains are seizing growth opportunities through deep collaborations with content creators. Facing local regulatory challenges, Web3 game developers in South Korea are actively looking to expand their blockchain games in the global market to find broader development opportunities. Oasys, as a leading player in this trend, not only provides Layer 1 networks but also launched a Layer 2 network based on Ethereum, offering diversified technical support to game developers. Recently, Oasys announced strategic partnerships with well-known South Korean game developer Com2uS and Web3 game division Metabora SG under Kakao, a South Korean internet giant.
Furthermore, expanding the ecosystem through mutual growth between games and blockchain platforms is another measure for public chains to achieve growth. Web3 game Pixels migrated from Polygon to Ronin at the end of October 2023, fully utilizing Ronin’s excellent interoperability and marketing support. This transition significantly increased the game’s visibility and on-chain activity. In February alone, Pixels achieved over 1.5 million on-chain interactions, approaching the milestone of 1 million users. This growth trend undoubtedly had a positive impact on Ronin, highlighting the mutually beneficial cooperation between the two parties.
In addition, Pixels launched the PIXEL token in February, combining “play-to-earn” airdrop activities and the Binance Launchpool reward program to further enrich the gaming experience. As a token of appreciation to Ronin supporters, Pixels announced an airdrop of 20 million PIXEL tokens to users who stake Ronin RON tokens, rewarding Ronin’s supporters.
Overview of Blockchain Games
In February, the activity level of the blockchain gaming market remained relatively stable, with 2,880 games maintaining an active state. However, it is worth noting that games with over 1,000 users accounted for a slightly lower percentage, dropping from 8.3% to 7.9%. Although the overall number of active users has increased by 28.9%, this growth has not led to more games becoming active, even when signs of a bull market are emerging. This indicates that only a few blockchain games have successfully attracted a growing player base, while most games still face challenges in attracting new users.
Some games are actively expanding their game intellectual property (IP) to enrich their content and attract more players. Renowned South Korean mobile game developer Bali Games successfully launched the RPG game Axie Champions based on the Ronin blockchain. This game cleverly incorporates popular Axie Infinity IP elements in collaboration with Axie Infinity developer Sky Mavis, bringing players a new gaming experience. Players also have the opportunity to earn AXS tokens as rewards while participating in the game, which undoubtedly increases the attractiveness and playability of the game.
At the same time, the continuous launch of new games continues to inject vitality into the market. Among them, the first-person shooter game MATR1X FIRE quickly attracted over 400,000 daily active users since its launch in February, becoming the new favorite in the market. Additionally, as a comprehensive platform, MATR1X combines artificial intelligence (AI), Web3 technology, and esports, aiming to create unique and innovative game products.
Investment and Financing in Blockchain Games
In February, the Web3 gaming sector continued to show strong development momentum, attracting 19 rounds of financing with a total amount of $83.6 million. This series of financing activities not only demonstrates the immense appeal and broad prospects of the Web3 gaming industry but also reflects investors’ continued optimism and confidence in the sector.
However, in these 19 rounds of financing, a whopping 89.5% of the funding amounted to less than $10 million, indicating that investors in the blockchain gaming sector are adopting a more cautious investment strategy.
Several game studios and games, such as Brawl Studios (BitBrawl), Matr1x FIRE, and Pixels, have successfully secured new financing. Meanwhile, the game platform sector, as a highly anticipated area, has also seen remarkable companies emerge, such as Crystal Fun, Ultiverse, and OVERWORLD, all making significant progress in their respective fields. Particularly noteworthy is OVERWORLD, which, incubated in the Xterio ecosystem, successfully raised $10 million in seed funding, aiming to pioneer cross-platform RPG games.
The spotlight is also on the game infrastructure sector. Infrastructure providers Ready Games Network (READYgg) and blockchain game data analytics platform Helika have both successfully completed their latest rounds of financing.
Gambling platform Monkey Tilt secured the largest funding in February, totaling $21 million, with participation from well-known institutions such as Polychain. This major financing event aligns with our 2023 Blockchain Game Year Report prediction, further confirming the enormous growth potential of the GambleFi sector despite facing regulatory challenges.
Key Developments This Month
Gala Games, a cryptocurrency gaming company, launched GalaSwap exchange and provides token rewards.
Leading global digital asset trading platform LBank announced the integration of Oasys into its diverse trading and investment portfolio.
Bitcoin Cats launched the 1CAT Chain testnet to enter the blockchain gaming field.
Cryptocurrency gaming platform PlayDapp lost $290 million worth of tokens in two attacks.
This article is for industry research and communication purposes only and does not constitute any investment advice. The market carries risks, and investment should be cautious.
Footprint Analytics is a blockchain data solution provider. With cutting-edge AI technology, we provide the first no-code data analytics platform for the crypto field and a unified data API, allowing users to quickly retrieve NFT, game, and wallet address fund flow tracking data for over 30 public chain ecosystems.
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Tags:
Ethereum
Cryptocurrency
Blockchain
Note: The opinions expressed in this article are solely those of the author and do not constitute investment advice.
Original article link: https://www.bitpush.news/articles/6355742
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