Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

Current status of the blockchain game field

Q3 of 2021 has verified that the popularity of blockchain games will continue under the strong promotion of the game to make money (P2E) movement. In the third quarter, the number of independent active wallets (UAW) connected to gaming dapps reached 754,000, accounting for approximately 50% of the blockchain industry interactions. The footprint of the game in the NFT field is becoming more and more obvious, and the NFT in the game accounted for more than 20% of the record NFT transaction volume in Q3.

The field of blockchain games is as exciting as ever. Axie Infinity has surpassed its gaming status, breaking the P2E movement beyond the blockchain. Splinterlands has become one of the blockchain games with the most users, and BSC has doubled its DeFi products through a large number of GameFi dapps. In addition, Metaverse continues to strive to become a digital place for creation, gaming, trading and social interaction.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

Note: Independent active wallet (UAW) or unique wallet refers to a unique address that interacts with a specific smart contract; therefore, UAW does not translate into (daily) active users (DAU). UAW cannot be equal to DAU.

Core point of view:

  • In the third quarter, the blockchain industry registered an average of 1.54 million UAWs per day, of which 49% interacted with blockchain games.

     

  • The game footprint is increasingly prominent in the NFT. NFT collectibles in the game generated $2.32 billion in sales in the third quarter, accounting for 22% of the industry’s total NFT transaction volume.

     

  • Axie Infinity has become the most traded collection ever, surpassing NBA Top Shot and CryptoPunks; at the time of writing, Axie has generated more than $2.5 billion in trade volume.

     

  • In the third quarter alone, Axie Infinity generated $2.08 billion in transaction volume; this amount accounted for 19% of the entire NFT transaction volume during the same period.

     

  • Splinterlands became one of the most user-frequent games in the industry. The trading card game attracted more than 245,000 daily UAWs in September, an increase of 3267% from the end of the second quarter.

     

  • Virtual world games (excluding Axie Infinity) continue to gain momentum. They generated more than 56.4 million transactions in the third quarter, an increase of 21% between quarters.

     

  • Polygon’s Arc8 refers to the field of mobile gaming, which is a $79 billion space with more than 2.5 billion players; Arc8 has attracted 378,000 UAW in the past 30 days.

About half of the blockchain active wallets are participating in the game

The blockchain industry registered 1.54 million UAWs in the third quarter, with quarterly (QoQ) growth of 25% and annual (YoY) growth of 509%. One of the main driving forces behind the surge in this indicator is the explosion of chain games. Driven by the P2E narrative, the number of unique active wallets connected to blockchain games reached 754,000 in the third quarter, accounting for 49% of the industry’s usage.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

WAX is one of the most popular blockchains, and its game-related usage indicators are on the rise. The World Asset Exchange registered more than 350,000 wallets per day on average in the third quarter. WAX is the home of the widely popular dapp “Alien Worlds”, and it is one of the most played games in this field. WAX enhances the attractiveness of its P2E products through Farmers World. This is an agricultural game where players manage resources, tools and land to achieve sustainable development. The game was launched in July and has generated more than 10 million transactions so far.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

Despite having a solid player base in WAX, compared with the second quarter, the dominance of the network’s usage dropped by 31%. At the end of June, WAX concentrated almost 82% of UAW connected to blockchain games, and at the end of July, the proportion was 51%. However, WAX’s game active wallets still increased by 53% month-on-month.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

WAX’s decline in game dominance was expanded by the gaming areas of BSC and HIVE, and the dominance of blockchain games of the two increased by 20% and 12%, respectively. There will be more information about these two blockchains below. However, this is just another way to prove the expansion that the blockchain gaming space is currently undergoing.

Game collectibles are key support for NFT’s record quarter

The NFT field performed well in the third quarter. Overall, from July to September, the NFT field has accumulated a total of US$10.67 billion in transaction volume, achieving a staggering quarterly growth of 704%. However, in other Ethernet Square collectibles under (such as CryptoPunks and Bored Ape Yacht Club (BAYC)) heat, NFT game items within the role has been neglected.

It is worth noting that the main difference between blockchain games and traditional games is that most of the playable items in blockchain games can actually be owned by their players, which means that players can trade, sell, use or lend at will These game items.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

In the third quarter, the NFT game project completed a transaction volume of US$2.32 billion, accounting for 21.72% of the total NFT transaction volume this quarter. From the second quarter to the third quarter, the dominance of NFT projects remained almost unchanged (20.25% in the second quarter), but the transaction volume increased by 762% month-on-month, even keeping pace with the enthusiastic pace of NFT.

It is worth noting that compared with August, the entire NFT transaction volume in September, including game items, showed a slight ebb, but compared with the previous quarter, the increase was significant.

As these two fields continue to grow, the integration between games and NFTs will become increasingly prominent. In addition to NFT as a collection in the game, some NFT projects such as BAYC, Galactic Apes and CryptoKitties have incorporated the development of the game into their roadmap (CryptoKitties is actually a breeding game itself). Other NFT series, such as Meebits, CyberKongz VX, Fluf World, Clone-X, etc., will become the avatars used by players in various virtual worlds.

An eye-catching season of Axie Infinity

Axie Infinity is the true catalyst of the play-to-earn revolution. Since moving to the Ronin sidechain, the game has reached an impressive level. In the third quarter, Axie became the most traded collection ever, surpassing blue chip NFT collections such as CrystalPunks and NBA Top Shot. At the time of writing, Axie has generated more than $2.5 billion in transaction volume. In the third quarter alone, Axie Infinity completed a cumulative transaction volume of US$2.08 billion, accounting for 83% of the historical transaction value of the game. 

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

The dapp developed by Sky Mavis has become a typical demonstration of blockchain games. As the team itself reported, Axie has more than 2 million daily active users (DAU).

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

In terms of revenue, Axie achieved more than $800 million in revenue during the quarter, only lagging behind Ethereum itself. What excites Axie fans is that the future prospects will only be brighter.

At the end of September, the team enabled AXS’s mortgage function. This mortgage mechanism adds a part of passive income to the Axie game earning mechanism. At the same time, 10,000 early Axie adopters were airdropped AXS rewards, and a total of 800,000 AXS was distributed to all wallets. At the time of writing this report, there are 17.8 million AXS/21.5 billion bets on the platform. This accounts for almost 30% of AXS’s total circulation.

Good luck followed, and the game studio Sky Mavis received US$152 million in funding from the private venture capital firm a16z. This will promote the further development of the game. In the next few months, Axie Infinity will enable enhanced PVP combat and digital land features. In addition, after analyzing the top 10 DApps that generated the most user interactions, the report found that blockchain games accounted for nine out of ten of them. It can be shown that although people’s interest in the game may not be as high as the previous months, it will continue for some time.

Splinterlands’ on-chain metrics grew rapidly in the third quarter

Splinterlands is a trading card game running on the Hive blockchain. Reflected by the huge transaction volume of NFTs and Axie Infinity, this game dapp has been kept low-key. Nevertheless, at some point in September, Splinterlands became the game with the most players considering only on-chain data.

During September, Splinterlands attracted an average of more than 245,000 UAW per day. Compared with the end of the second quarter, the number of players in the game increased by 3267%. Other indicators prove that the demand for the game has grown steadily. For example, the game registered more than 153 million transactions during the quarter, an increase of 177% from the second quarter. At the same time, the game generated 1.18 million US dollars in transaction volume, an increase of 1200% over the second quarter.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

The main driving force behind the proliferation of games may be Splinterlands Shards or SPS, the game’s management token. SPS was launched in August and will allow token holders to vote on the future of the game. Splinterlands has become an important part of the blockchain game field. Up to now, the game constitutes almost 98% of the Hive network usage rate.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

In addition, as the number of game players increases, Splinterlands will optimize its game mechanics. The game will expand the existing card supply through the Chaos Legion card series, and this new set of cards will be on sale from October 18. Players can obtain credentials to purchase these card packs by betting on SPS, which increases the utility of governance tokens. These new cards will earn players the main currency in the game-Dark Energy Crystals (DEC). The ratio is different from the original cards. They not only bring the strategy in the game to different levels, but also bring the P2E strategy into the game. A new stage. In addition, it is expected that subsequent land mechanisms will also appear in the Splinterlands universe.

Meta universe develops steadily

One of the most attractive concepts in the field of blockchain games is the meta universe. Metaverse is a network of virtual environments where players can freely transfer value and data without switching their online identities. The importance of the virtual world is growing exponentially, because the meta-universe aims to become a space medium that promotes the formation of communities to create, play, trade, and socialize.

In the third quarter, the virtual world generated more than 56.37 million U.S. dollars in transactions, of which The Sandbox was in a leading position. The Sandbox is one of the most important virtual land games in this field. It has confirmed collaborations with companies such as Atari, The Walking Dead, and recently Snoop Dogg, thanks to its land sales, which helped The Sandbox achieve more than $17 million in transactions in the third quarter quantity.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

In addition to the “The Sandbox”-driven development, mainstream circles have also begun to participate in the metaspace project in a fairly visible amount. For example, the Coca-Cola Company collaborated with Decentraland to launch its first NFT series in a virtual world. Burberry and Blankos jointly launched the NFT series based on the fashion brand and sold out in a few seconds.

All in all, Metaverse is one of the most eye-catching concepts in the industry. Metaverse is very likely to become a place where fashion brands can digitally monetize their assets. At the same time, Meta Universe may also become the host of some exciting games.

BSC becomes GameFi hot spot

BSC is a blockchain related to decentralized finance. However, since July, gaming activity within the Binance brand network has increased significantly. In the third quarter, BSC attracted an average of 608,000 UAWs per day, of which 168,000, 28% of UAWs, were connected through game DApps. In the second quarter, less than 2% of BSC’s UAW came from blockchain games. 168,000 UAW represents a jaw-dropping 1701% quarterly growth.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

In fact, the growth of BSC’s games has been more pronounced throughout the industry. In the second quarter, the number of BSC UAW related to games accounted for only 3% of the total number of industries, while in the third quarter, BSC contributed nearly 23% of the total number of industries.

GameFi in BSC games-or gamification of DeFi, which can be called DeFi, enhances the network awareness that blockchain networks can make games flourish. Perhaps the first BSC game to launch a large number of games is the battle game CryptoBlades , where users participate in PVE battles to obtain the currency of the game SKILL. SKILL can be mortgaged on the CryptoBlades platform, enriching GameFi elements.

In August, CryptoBlades became the game with the most players measured only by UAW. On August 6, it reached a user peak, with 406,000 UAW connected to the game DApp, but since then, all indicators have been declining, and the game usage rate in September has dropped by 95%. The negative downward trend is closely related to the price of SKILL, which is 90% lower than the price on July 28. With the large-scale decline, the potential income earned by players decreases, causing the game to lose enthusiasm for participation in the community.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

Nevertheless, the game attracted more than 60,000 UAWs in September and generated 1.3 million transactions. It is still one of the top three games with the most players in BSC, alongside Mobox and CryptoBay.

From the perspective of Mobox, NFT Farmer has experienced one of the most organic growth in the BSC network. During September, Mobox attracted more than 30,700 daily UAWs and generated nearly $67 million in transaction volume. Overall, the usage of Mobox increased by 335% from the previous quarter, and the transaction volume in the third quarter rose to $280 million, an increase of 28% from the previous quarter.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

From a financial perspective, the application seems more stable. The price of the game’s native currency MBOX increased by 641% quarterly. The total value lock (TVL) of the app has more than doubled since July. At the time of writing, Mobox’s TVL is approximately $315 million.

BSC games will maintain the growth momentum in the third quarter as much as possible. Mobox is one of the top 5 most played games in the industry, and it is also a mature player with GameFi components. The CryptoBlades team has announced the CryptoBlades Kingdom (CBK) as a standalone sequel that will introduce strategy-based land construction. The CBK universe will add digital lands, guilds, and new game mechanics, including PvP battles, and PvE events, such as 1-on-1 environmental warfare, raids, and dungeons.

Polygon has been involved in the game?

Polygon is another DeFi network that continues to explore its gaming prospects. Although slightly inferior to BSC, in September, Polygon had an average of 30,000 UAWs connected to game dapps per day, an increase of 373% compared to the second quarter. What is the main driving force behind the latest surge in Polygon gaming wallets?

As reported by DappRadar, Gamee, a subsidiary of Animoca Brands, has collaborated with Polygon Studios to optimize the game prospects within the Layer 2 network. Therefore, Gamee launched Arc8, a blockchain mobile game DApp, and GMEE, the game’s governance token will enter the Polygon ecosystem.

Q3 Blockchain game industry panorama: strong play and earning drive continued popularity of chain games

Arc8 is steadily moving towards the right strategy. So far, the mobile game has become the most used dapp within Polygon, attracting more than 378,000 UAW in the past 30 days.

The business model proposed by Arc8 is definitely worth paying close attention to. It deals with the still-to-be-developed part of the blockchain game field, namely mobile games. According to Statista’s data, the mobile gaming sector is expected to generate 79 billion US dollars in revenue in 2021, while attracting more than 2.5 billion users, with huge potential.

In addition to Arc8, Polygon also has other interesting game options, such as GameFi dapp Aavegotchi, and the racing game Revv Racing. In the upcoming transition, Polygon is in the ideal stage of further broadening the scope of the network beyond DeFi, the upcoming virtual worlds such as The Sandbox and Ember Sword, and card games such as Doctor Who, Worlds Apart also announced the inclusion of Polygon Its ecosystem.

Closely

Solana game-Solana has made considerable progress in the DeFi field. The blockchain carries a strong DeFi ecosystem and a complete NFT market. At the same time, its blockchain games are not far behind. Star Atlas is one of the most watched games and is expected to be launched in 2022.

Not limited to Star Atlas, Aurory, another RPG game, which will feature PVE and PVP monster battles, is expected to become one of the blue chip games launched on Solana. Project Seed, an ARPG game, will involve interesting tokenomics around the DAO of future games, while fighting the beasts or Zeds that are flooded with the virtual land of the game. Cryowar, another game that will rely on Unreal Engine, aims to be a real-time multiplayer PVP arena NFT game. Finally, Ninja Game, another ARPG game, will awaken the nostalgia of old Diablo players.

Land sales -the importance of veteran games no longer needs to be emphasized, especially the virtual land in games. Virtual land will allow owners to improve their mining capabilities, generate additional resources, and many other functions. In the next few weeks, projects like Ember Sword, The Sandbox, Aavegotchi, and My Neighbor Alice will sell land on their respective platforms.

Immutable X – Similar to Polygon, Immutable X is an Ethereum second layer solution. Immutable X relies on ZK rollups to optimize network latency. The project became popular in 2019 with Gods Unchained, one of the pioneers of trading cards. This network is also where the blockchain mobile RPG game Guild of Guardians runs. This game has attracted more than 150,000 fans and will soon usher in the third wave of NFT sales, which is worthy of attention. Illuvium, one of the most anticipated blockchain games, moved to the Immutable X network. Illuvium was marked as a AAA game and was introduced in depth in the BGA report in August. In addition, there is “My Crypto Heroes” and other interesting options. As a real game platform, the competition for Layer 2 solutions will become increasingly fierce.

Gala Games – This startup led by Eric Schiermeyer, the co-founder of Zynga, is focusing on creating truly decentralized blockchain games. Players can own nodes, and nodes will eventually become players’ own decentralized network. So far, this startup has only launched Town Star, which is an agricultural game that can make money by playing. It uses the original effective token of the network GALA and the game’s token TOWN to reward players. In addition, Gala will also launch a fantasy RPG game Mirandus that takes place in a huge digital world, battle arena game Spider Tanks, space video game Echoes of Empire and tower defense game Fortified. However, these games are still under development.

Summarize

The third quarter may be the most important period in the history of blockchain games. The vitality of playing and earning sports has been fully demonstrated, and some game dapps have begun to occupy a dominant position in their respective ecosystems. In addition, the gaming sector has catalyzed the positive trend of the growth of blockchain applications, and the number of UAW connected to games has grown to almost half of the U of the industry.

At the same time, the report believes that attention should be paid to the importance of NFT in game projects. In the third quarter, gaming NFTs accounted for more than 20% of the record $10.6 billion industry NFT transaction volume. The convergence between these two fields is coming soon. In fact, as mentioned earlier, important NFT collections will include games to some extent, or will become the user’s avatar in the meta-universe. The importance of the meta universe will continue to grow. In mainstream media, virtual space has begun to be mentioned, but blockchain games will catalyze digital life to multiple platforms, permanently changing the community paradigm.

In addition, the game to earn money has become one of the hottest headlines in the blockchain. In addition to Axie Infinity, which has already ranked among the top, games such as Splinterlands, Alien Worlds, and Upland may become important players in large-scale adoption. BSC games also took a big step forward in the third quarter, and Polygon also began to make a splash. If other Layer 2 solutions such as Immutable X, or other related game networks like Gala join the field of play and earn, this will undoubtedly be the best time to participate in blockchain games.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/q3-blockchain-game-industry-panorama-strong-play-and-earning-drive-continued-popularity-of-chain-games/
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