Predictions abound about when the crypto market will recover from their fall from grace. But such projections of recovery are not needed for one specific section of the crypto industry.
Blockchain Gaming
As the downfall of FTX continues to push the crypto markets deeper into red territory, DappRadar says that one sector of the industry remains largely unaffected by the turmoil.
In a new report, the data acquisition and analysis firm says that the blockchain gaming sector continues to be a driving force for the decentralized application (DApp) industry.
“In October and November, gaming activity accounted for almost half of all blockchain activity tracked by DappRadar across 50 networks, with 800,875 daily Unique Active Wallets (UAW) interacting with games’ smart contracts in November.”
As FTX, formerly the second-largest exchange platform in the industry, was filing for bankruptcy in November, DappRadar says blockchain games raised over $320 million.
During that period, the average daily unique active wallets in the Web3 gaming sector declined by just 12%, reaching 800,875.
“In November, despite the FTX collapse, blockchain gaming activity was resilient…It is still the most significant part of the industry, making up 42.67% of all blockchain activity. The decrease in dominance is driven by the increase of the DeFi [decentralized finance] sector amid the FTX meltdown.”
The report says that 2022 saw a stream of partnerships and investments in blockchain gaming, noting that the month of September marked a year-low.
“We are observing an ascending trend for the investments in blockchain gaming. September was the lowest month for blockchain gaming investments and the value flowing in startups and promising projects kept increasing from there.”
As to why the sector did not flinch against the backdrop of the FTX implosion, DappRadar says that those entering the crypto space through gaming or NFT channels do not particularly have an interest in the fallen centralized exchange.
“Unless their tokens were held in FTX, which is unlikely given that most blockchain games have internal marketplaces and staking options for their players, which means that tokens must be kept in a blockchain wallet. Without even realizing it, gamers may have learned the harshest Web3 lesson: not your keys, not your crypto.”
2000% Increase
Blockchain-based game playing increased 2,000% since Q1 of 2021, equating to 52% of all blockchain activity, according to the recent DappRadar x BGA Games report.
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Blockchain games attracted 1.22 million unique active wallets (UAW) in March of this year, with Axie Infinity being responsible for 22,000 of those in spite of the $615 million Ronin Bridge hack.
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A rise in popularity of play-to-earn non-fungible token (NFT) games on Ethereum sidechains has been a big contributor to growth, with platforms like Crazy Defense Heroes, Pegaxy, Arc8, and Aavegotchi spurring a 219% increase in Polygon’s gaming activity since the start of 2022.
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Activity on the likes of BSC and Ronin, on the other hand, has dropped off since the end of last year as users attempt to minimize risk on more volatile chains.
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Across the sector, a total of $2.5 billion of funding was raised in Q1 of 2022, up 150% from the year-ago quarter. Animoca Brands was among those with investments, raising $360 million at a $5 billion valuation as it cements itself as one of the leading Web 3 brands.
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