In March 2024, Bitcoin continued to break records and successfully rebounded from its mid-month slump. The entire cryptocurrency market performed well, benefiting from the positive macroeconomic conditions. Meanwhile, the Game Developers Conference (GDC) 2024 played a crucial role in driving the development of the blockchain gaming industry, contributing to a 24.1% increase in market capitalization of gaming tokens and a 17.5% increase in daily active users. Gaming industry giants and public chains are actively investing in and nurturing the Web3 gaming ecosystem. Let’s pay attention to how these initiatives will be implemented and what results they will bring.
The data in this report is sourced from Footprint Analytics’ Web3 Gaming Research page. This user-friendly dashboard provides the most important statistical data and indicators for the Web3 gaming industry and is continuously updated. You can click here to find the latest information on prices, projects, funding, and more.
Market Review for March
In March, Bitcoin experienced significant fluctuations between breakthroughs and volatility. Starting at $61,213, it quickly surpassed its previous high of $69,000 and reached a new all-time high of $73,068 on March 14. Although it experienced a 15.1% decline to $62,047 in the middle of the month, it recovered by the end of the month and closed at $69,656, representing a 13.8% increase for the month. In comparison, Ethereum had a relatively stable increase, starting at $3,344 and closing at $3,648, with a 9.1% increase.
Data source: Bitcoin and Ethereum price trends – Footprint Analytics
The strong performance of the cryptocurrency market in March can be attributed to the market’s anticipation of interest rate cuts, despite strong overall economic performance. This outlook has intensified inflation concerns, making assets like Bitcoin and gold more attractive. The price movement of Bitcoin is closely related to the performance of the US Bitcoin spot ETF. The mid-month price decline was mainly influenced by the slowdown in inflows into the Bitcoin spot ETF and the reduction of leverage by traditional traders. However, the market’s expectation for the Bitcoin halving event in April has maintained its upward momentum.
Although Ethereum’s increase was slightly lower than Bitcoin’s, it still maintained steady growth, partly due to the uncertain prospects of the US spot ETF approval. Ethereum’s important network upgrade, the Dencun Upgrade, which aims to lower transaction costs, has also contributed to its ecosystem’s activities.
In March, the AI industry became a market focus as Nvidia released the Blackwell GPU and GB200 superchip at the AI event GTC 2024. This not only ignited enthusiasm in the US and global stock markets but also attracted widespread attention in the cryptocurrency market, driving the rise of the crypto AI sector.
Overview of the Blockchain Gaming Market
In March, the market capitalization of blockchain gaming tokens increased by 24.1% to reach $24.1 billion. This growth was not only due to the prosperity of the cryptocurrency market but also the promotion from the Game Developers Conference (GDC) 2024. The conference further stimulated the activity of Web3 game developers and significantly increased market attention on gaming tokens.
Data source: Active game players’ market share – Footprint Analytics
Driven by market dynamics and major industry events, the number of daily active users (wallets) continued to grow in March, reaching 2.7 million, a 17.5% increase compared to February.
Data source: Daily active users in blockchain gaming – Footprint Analytics
However, despite a rebound in trading volume since the third quarter of 2023, it has not yet reached the peak level of the second quarter of 2022.
Blockchain Gaming Public Chain Data
In March, the rankings of game players showed that Ronin, Polygon, and BNB Chain were the platforms with the most active players, accounting for 35.4%, 20.9%, and 10.8% of the market share, respectively. It is worth noting that Ronin and Polygon further consolidated their leading positions, with their market shares growing by 6.3% and 7.8% respectively compared to February.
Data source: Active game players’ market share – Footprint Analytics
In terms of trading volume rankings, Ethereum, Ronin, and BNB Chain dominated. In March, Ronin’s trading volume reached $81.7 million, a 35.1% increase compared to the previous month, while BNB Chain experienced a 13% decline. Ronin’s market share continued to expand with less than 10 games. As Ronin continues to add new games, its growth potential is expected to further increase.
Data source: Ronin popular games – Footprint Analytics
Competition in the public chain sector is intensifying, with major public chains increasing their investments to promote the prosperity of the Web3 gaming ecosystem. Arbitrum Foundation announced a proposal to distribute 200 million $ARB tokens over two years to support game projects on its blockchain. Of these, 160 million $ARB will be allocated to game publishers and developers, while the remaining funds will be used to enhance infrastructure. This proposal requires approval from the Arbitrum DAO.
Meanwhile, the Starknet Foundation is also taking active measures by establishing a dedicated game committee to promote the development of the Starknet gaming ecosystem. The committee plans to distribute 50 million $STRK tokens to support committee-approved game projects, especially those that incentivize game development and player participation.
In addition, Immutable, King River Capital, and Polygon Labs have jointly launched a $100 million “Inevitable Games Fund.” This fund combines the expertise of the three parties in the gaming and blockchain fields to seek and invest in promising game studios and Web3 infrastructure.
Blockchain Gaming Overview
In March, the number of active blockchain games remained stable at 2,879, with no significant fluctuations in the market. However, the industry is eagerly anticipating a major breakthrough to significantly increase user engagement.
Data source: Monthly active blockchain games – Footprint Analytics
Against this backdrop, a question arises: will the popular game Notcoin, which gained significant attention this month, become a game changer in the market? This simple clicker game, based on the Telegram messaging app, has attracted over 35 million players in just a few months. Players can earn game coins by interacting with the Notcoin bot on Telegram, inviting friends, and starting the game. However, what prompted 35 million users to engage in this seemingly simple “click to earn game coins” game? The answer lies in the upcoming airdrop activity. Notcoin announced that it will migrate its large amount of game coins to the blockchain using The Open Network (TON) in April, which has sparked great market attention. But this raises another question: if only the game coins are on the chain and other game mechanics, equipment, and data are not, can a game be called a “blockchain game”?
Meanwhile, several games and platforms have emerged in March with impressive performances. Among them, Gala Games’ token $GALA saw a significant increase of 69.6%. Gala is dedicated to building a massive AAA-grade gaming platform that empowers players with unprecedented freedom, control, and rewards.
On the other hand, the Ethereum-based open-world fantasy battle game Illuvium has also made significant progress, successfully raising $12 million in Series A funding. Positioned as the first AAA-grade game on Ethereum, Illuvium stands out with its fully 3D environment, setting it apart from other blockchain games. In March, its token $ILV increased in value by 18.2%.
Data source: Blockchain gaming fundraising – Footprint Analytics
The gaming industry has experienced an investment boom, raising a total of $151 million in funding, an 80.6% increase compared to the previous month, involving 26 funding rounds. This significant growth highlights the continued favor and high attention of capital towards the industry.
Blockchain Gaming Sector Funding Events in March 2024 (Data source: crypto-fundraising.info)
As infrastructure for the industry, public chains are actively consolidating their positions and promoting ecosystem expansion through investments in game projects. Solana, in particular, has stood out, with its Solana Ventures investing in Parallel, and the Solana Foundation providing funding for Elixir Games. Parallel, with a funding amount of up to $35 million, became the largest funded project in March.
Meanwhile, Avalanche has also made significant progress. The Avalanche Foundation strongly supported two projects: BloodLoop and Crystals of Naramunz. In addition, the Avalanche ecosystem fund, Blizzard Fund, provided funding support to Gunzilla Games, making it the second-highest funding round in March with $30 million.
Gaming giant Square Enix is not only developing its own blockchain products but also investing in promising Web3 projects. In March, Square Enix injected funds into game platforms Elixir Games and HyperPlay, and plans to introduce its game Symbiogenesis to the HyperPlay platform.
Traditional crypto funds have also been active. a16z Crypto supported MyPrize and MadWorld, while Animoca Brands supported Illuvium, MetaCene, and game infrastructure Param Labs.
Key Developments in March
Ubisoft will become an XPLA ecosystem node validator.
South Korean gaming giant NHN’s Web3 gaming platform Pebble has entered into a strategic partnership with Footprint Analytics.
Game blockchain Saga announced the establishment of the Saga Origins department, focusing on Web3 game distribution.
Sony is seeking a patent for “ultra-fungible” game tokens.
South Korean game company Nexon revealed that the blockchain version of MapleStory Universe, the Adventure Island Chain game, is switching from Polygon to Avalanche.
This article is for industry research and communication purposes only and does not constitute any investment advice. The market carries risks, and investments should be made with caution.
About Footprint Analytics
Footprint Analytics is a blockchain data solutions provider. With cutting-edge AI technology, it offers the first no-code data analysis platform and unified data API for the crypto domain, allowing users to quickly retrieve NFT, gaming, and wallet address fund flow tracking data from over 30 public chain ecosystems.
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Tags:
DeFi, GameFi, Social, Metaverse
WEB3
Cryptocurrency
Funding
Market trends
Original article link: https://www.bitpush.news/articles/6585316
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