Q1 2022 DappRadar x BGA Gaming Report

Q1 2022 DappRadar x BGA Gaming Report

Although the current situation is challenging from a micro and macroeconomic perspective, blockchain gaming activity remains stable. The recent 500 million hacks on the Ronin bridge remind us that interoperability requires trade-offs.Meanwhile, the Ukrainian war and the negative performance of the cryptocurrency market hampered the game’s continued growth over the last year. Still, over the long term, blockchain gaming activity is up 2,000% from the previous year.

Q1 2022 DappRadar x BGA Gaming Report

Source: Google Trends

Gaming dapps continue their ongoing development, and the Metaverse keeps popping up with exciting opportunities in the blockchain industry. Venture capital and other investors continue to pour money into blockchain games and Metaverse projects, investing more than $2.5 billion. At the same time, financial institutions are evaluating the economic potential of the decentralized Metaverse, a market of at least $8 trillion.

Important points

With $2.5 billion raised in the first quarter, investment keeps pouring into the blockchain game; at this rate, 2022 investment will be 150% higher than last year.

Blockchain gaming attracted 1.22 million UAW in March, accounting for 52% of overall industry activity; while short-term usage appears to be stable, blockchain gaming usage is up 2,000% compared to Q1 2021. 

Sky Mavis has endured a challenging period following one of the most significant attacks in crypto history; nonetheless, Axie Infinity attracted 22,000 UAW per day in March, while Binance led a $150 million fund Asset recovery from the Ronin bridge hack.

The Metaverse continues to grow; The Sandbox Alpha Season 2, Decentraland’s Fashion Week and NFT World’s valuations all demonstrate the potential of the space. 

Splinterlands, Alien Worlds, and Crazy Defense Heroes drove blockchain gaming activity, with an average of over 650,000 daily UAWs in March.

content

52% of blockchain activity comes from gaming dapps

Challenge Period for Sky Mavis

Gaming and Metaverse projects raise $2.5 billion in Q1

The blockchain Metaverse around you

List of well-known games review

prospect

52% of blockchain activity comes from gaming dapps

Amid challenging circumstances, blockchain gaming has maintained a steady level of usage. In the first quarter of this year, an average of 1.17 million UAW users accessed blockchain games every day, down 2 percent from the daily average in the fourth quarter of last year. However, the daily average in March exceeded 1.22 million, already showing signs of recovery.

Q1 2022 DappRadar x BGA Gaming Report

From a blockchain active standpoint, Matic has maintained momentum as a challenger to the leading gaming ecosystems Wax, Harmony, and BNB Chain. Gaming dapps on the Ethereum sidechain drew an average of 114,000 UAWs per day in the first quarter, compared to an impressive 173,000 in March. Games such as Crazy Defense Heroes, Pegaxy, Arc8 and Aavegotchi have driven Polygon’s 219% increase in gaming activity since the end of December.

Q1 2022 DappRadar x BGA Gaming Report

On the other hand, the on-chain activity of Ronin and BNB Chain has declined since the end of last year. With the exception of Mobox and Bomb Crypto, usage of most gaming dapps in the Binance-branded network is largely volatile to some extent. Nonetheless, BNB Chain remains the third most active network in blockchain gaming, with daily UAWs of 165,000 in the first quarter, down 33% from December last year.

Meanwhile, Ronin is going through its most challenging period since launching nearly a year ago.

Challenge Period for Sky Mavis

On March 29, the Sky Mavis team announced that 175,000 ETH and 25.5 million USDC were stolen after the Ronin bridge was attacked about a week ago. Hackers managed to gain control of five of the eight multi-signature wallets needed to approve deposits and withdrawals from the bridge’s escrow contract, stealing the second-largest amount of cryptocurrency in history.

Q1 2022 DappRadar x BGA Gaming Report

While the hack forced Ronin’s native dapps to cease operations, the massive drop in activity on the Axie blockchain wasn’t entirely the result of this latest attack; in fact, the numbers have been dropping. The game’s on-chain activity peaked in January, when the game’s daily average UAW exceeded 55,000, and it had dropped to nearly 22,000 in March.

The number of UAWs started to decrease in mid-February as Sky Mavis made adjustments to the SLP reward ratio to make Axie’s in-game currency sustainable in the long term. Nonetheless, Axie Infinity remains one of the top 10 most popular games by daily usage, still attracting over 1.5 million daily active users according to off-chain data.

Q1 2022 DappRadar x BGA Gaming Report

The attack on the Ronin bridge was a heavy blow to Sky Mavis. However, Ronin is a complete ecosystem. Katana has proven to be a usable DeFi option when mining is turned on, and both the network and the community are governed by its token, RON. In addition, there is general support from the Axie Infinity user base and the Web3 community. Binance launched a $150 million funding round with Animoca Brands and a16z to repay users affected by the attack. To help solidify and strengthen the core of its ecosystem, Sky Mavis has launched a $1 million bug bounty program.

Axie Infinity will likely stay ahead for a few months. In these challenging times, it’s easy to forget that Axie NFTs became the first collection to surpass $4 billion in historical transactions (excluding LooksRare). In addition, according to Sky Mavis, the beta version of Origin was successfully launched in April this year, attracting more than 220,000 people. Origin means Axie’s virtual world, Lunacia, is one step closer.

Gaming and virtual world projects raise $2.5 billion in the first quarter

Investments in blockchain games in the first quarter surpassed the $4 billion in 2021. In the first three months of 2022, VCs and investors have poured at least $2.5 billion into blockchain games and their infrastructure. At this rate, gaming revenue and Metaverse-related projects will add $10 billion this year to continue building the future of the industry.

Animoca Brands has raised a $360 million investment at a $5 billion valuation, cementing its position as one of the leading Web3 brands. Last month, Sequoia Capital invested $450 million in Polygon, a blockchain that has nurtured one of the most attractive blockchain gaming ecosystems.

Q1 2022 DappRadar x BGA Gaming Report

In March, more than $785 million was invested in different projects. Yuga Labs, the studio behind the famous NFT series Bored Ape Yacht Club (BAYC), has secured a $450 million investment led by Animoca Brands, with participation from The Sandbox, FTX, and Coinbase. This investment further strengthens Yuga Labs’ position in Web3. It also boosts the team’s plans for the Metaverse as they prepare for Otherside’s launch. Otherside will be an interoperable Metaverse platform involving gaming, fashion and media.

Also worth mentioning is the $200 million investment in Immutable-X (IMX) led by Temasek. The investment brings the Sydney-based ethereum scaling solution’s Series C valuation to $2.5 billion. IMX has two popular blockchain games Gods Unchained and guild of Guardians. Over the next few months, Illuvium and Ember Sword will also join the ranks of these dapps. The funds raised will be used to further build and expand the IMX product.

The blockchain Metaverse around you

Interest in the Metaverse started to cool after Meta announced a name change in Q4 2021. Compared to the fourth quarter of 2021, virtual world transaction value declined by 12%, reaching over $430 million in the first quarter of 2022.Decentraland and The Sandbox tumbled 40%, while trading volumes on these two platforms dropped by 20% and 60%, respectively. Still, the overall perception of the Metaverse platform bodes well for such projects.

Q1 2022 DappRadar x BGA Gaming Report

The Sandbox completed its second alpha season, attracting more than 325,000 players across 35 experiences open to early players. Approximately $30 million in SAND tokens were distributed in the second quarter. In addition, brands such as Warner Bros., Ubisoft and HSBC have all forged close partnerships with this virtual world where games make money.

Q1 2022 DappRadar x BGA Gaming Report

Meanwhile, Decentraland and Boson Protocol hosted fashion weeks in the last week of March. Well-known fashion brands such as D&G, Estee Lauder and Forever 21 offer immersive experiences in the platform’s Fashion District, which was acquired by Metaverse Group for $2.4 million.

Q1 2022 DappRadar x BGA Gaming Report

Also notable is the performance of NFT Worlds, a virtual world of 10,000 parcel NFTs that allows its owners to customize their parcels for a gaming experience. The project demonstrated its utility through its WRLD airdrop and staking pool, which in turn led to a surge in user demand for NFTs. NFT Worlds was the second most traded Metaverse project, generating $95 million in transactions, second only to The Sandbox ($113 million).

The potential of a blockchain-based Metaverse is well known. Microsoft, Google, Disney, Sony, and several other leading players will no doubt try to grow their brands in the Metaverse. However, the ownership of NFTs and the potential financial ecosystem enabled by cryptocurrencies and earning games will change the paradigm of traditional metaworlds confined to virtual, augmented reality.

List of well-known games review

It feels like the top earning games and GameFi dapps have found a way to appeal to their respective communities.Splitterlands is established as the #1 earning dapp. In March, Hive’s card game attracted more than 366,000 daily UAW users, a 15% increase from December 2021. Updates to the deck supply, including yield ratios, have built a solid community in the game.

Polygon games Crazy Defense Heroes (CDH) and Pegaxy were among the top performers. Tower defense game CDH has seen a steady rise in player numbers, attracting more than 134,000 daily UAW players in March. This represents an increase of 540% compared to the end of December. Likewise, Pegaxy’s on-chain activity has grown by 420% over the same time period, attracting more than 16,000 UAWs in March.

Q1 2022 DappRadar x BGA Gaming Report

Both BNB’s Mobox and Harmony’s DeFi Kingdes (DFK) maintained positive on-chain metrics. Blockchain activity on Mobox increased 10% from the previous quarter, thanks to a solid roadmap around Momoverse. As for DFK, despite a negative growth trend in the DeFi sector and a 12% drop in the price of the game’s native token JEWEL, its on-chain activity data remains relatively stable. Both games demonstrate the potential of GameFi as the lines between DeFi and gaming begin to blur. 

On the other hand, Wax’s Alien Worlds and Binance’s Bomb Crypto are struggling to keep blockchain activity levels on par with last year. Alien Worlds lost some ground last August after attracting more than 300,000 UAW subscribers. The Space mining GameFi dapp still attracts over 188,000 UAW users daily, while its TLM token has been one of the most popular game-based cryptocurrencies. Based on the history of other BNB games such as CryptoBlades and CryptoBay, Bomb Crypto’s project deserves attention.

While the top 10 blockchain games are basically established, other gaming dapps are also worth noting, such as Avalanche’s Crabada or IMX’s Gods Unchained, which are also trying to compete for the market of existing blockchain games.

prospect

All in all, blockchain gaming remains one of the most attractive areas of the dapp industry. While demand for blockchain gaming appears to have stalled, gaming dapps still drive the bulk of the industry’s on-chain activity. Notably, well-known games were still able to attract their player bases during a challenging first quarter.

Support for a decentralized and interoperable Metaverse based on blockchain gaming is swarming. Venture capital firms and investors are pouring money into Web3 gaming projects at a record pace. At the same time, top brands such as Ubisoft, Warner Bros. and Adidas are also starting to emerge in the field.

What’s more, financial institutions such as Morgan Stanley estimate the economic potential of the Metaverse to be at least $8 trillion. The second alpha season of The Sandbox, Fashion Week in Decentraland, and high demand for NFT Worlds point the industry in the right direction.

However, security concerns like the Ronin Bridge this time and the challenges of achieving full interoperability remind everyone involved that mainstream adoption is still a few steps away. 

Blockchain games need to play a significant role in this process to get to this point. Like NFTs, gaming dapps will be the key to achieving the mass adoption point required for Web3 to the next level

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/q1-2022-dappradar-x-bga-gaming-report/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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