As the DeFi market slumped earlier this year, crypto users and investors flocked to the GameFi market to expand their portfolios. Subsequently, the number of game projects increased from 693 to 1,406, a year-on-year increase of 103%.
In many game projects, users often need to filter the projects. A project not only depends on its popularity in the industry, but also needs to evaluate the project’s team background, financing status, economic model, user data, etc.
The following will select the top and more popular GameFi projects for daily active users for analysis to see if they are P2E games worthy of attention?
5 Important Metrics for Evaluating P2E Games
The number of GameFi game projects is growing rapidly, but not all projects are showing positive growth. Therefore, users should analyze and do due diligence before screening projects, which can be evaluated from these 5 important indicators:
- Whether the team has a long-term development plan and financial support;
- If there is the support of well-known venture capital investment, it can add a lot of credibility to the project;
- It is also important that the founders and team technicians have blockchain experience, especially in the game field.
- A good lead investor can bring traffic and popularity to the project, and can even participate in the design and iteration of the project’s economic model. You can also see if the team has experience building and managing projects successfully in the past.
- Focus on the amount and timing of financing. For example, in a bull market or a bear market, the financing amount of different projects is also different.
- The token economic design is crucial for determining whether the game’s mechanism can develop stably for a long time and for carrying a large number of users’ token transactions;
- The liquidity and stability of the project’s in-game funds can be examined through the single-currency or dual-currency model adopted by the project.
Project business model
- How the project party makes profits is directly reflected in the token price of the project and the market value of the token.
- The number of users is the key to the healthy operation of the GameFi ecosystem. It reflects the popularity of the game item among users.
Apply 5 metrics to real-world examples
Footprint Analytics – GameFi Users Overview (Latest)
Launched on August 23, 2021, DeFi Kingdoms is a Metaverse project based on the Harmony chain that integrates DeFi revenue farming activities into more gamified gameplay.
- team background
According to the official website, it is subdivided into 9 groups of team members, including back-end development, front-end development, game design and legend artist, model design, community, operation, business and other functions.Since team members are largely anonymous, it can be difficult to judge their professional experience.
On the other hand, the white paper roadmap design of the project is very clear and divided into 6 phases. Less than a year after the launch, the team has developed to the fourth stage and launched DFK Chain. DeFi Kingdoms is known for building kingdoms that include games, DEXs, popularity pools, and NFT marketplaces. At one point, the game’s transaction volume surpassed that of Axie Infinity.
Footprint Analytics – Top 10 Games Ranking by Volume
It can be seen that in a short period of time, the team has successfully advanced development and operations as planned.
As of April 28, there is no public funding information for the project. In contrast, Axie Infinity has raised 5 rounds of funding totaling $9 million. Therefore, the DeFi Kingdoms project is slightly behind in financing.
However, on March 8, the Avalanche Foundation launched a $290 million incentive program to promote the growth of the Subnet Gaming project. And DeFi Kingdoms is the first project to receive a $15 million reward through the Multiverse program. Be the first multi-chain game.
At present, many GameFi games will set a multi-token mode. Although the single-token mode is more convenient for players, it can also reduce the difficulty for development. However, the multi-token model can minimize the impact of token price fluctuations in the secondary market on the game.
DeFi Kingdoms adopts a multi-token model to promote the liquidity and stability of in-game funds.
- $JEWEL as the main value token in the game. Users can purchase the game $JEWEL on the Marketplace and put it into Jeweler for single-currency pledge to obtain the equity token and governance token $xJEWEL in the project, which can be used to participate in ecological governance voting.
- The largest liquidity pool in DeFi Kingdom is $JEWEL and Harmony’s native token ONE to form an LP in the Marketplace. In the past few months, this LP has about 300% to 400% APY, bringing high revenue to users.
- In order to ensure the long-term stability of $JEWEL, most of the $JEWEL obtained by LP pledge is temporarily locked by the system. Locked tokens are gradually unlocked and can also be accelerated by mining tasks.
DeFi Kingdoms’ Tokenomics and high revenue have attracted many users to participate in the game.
Notably, since launching on Avalanche, the game also includes the $CRYSTAL token, which functions similarly to $JEWEL on the chain.
- Project business model
The business model of the project is directly reflected in its token price and token market value. As of April 27, the market value of DeFi Kingdom is $241 million, which is more than the top game Alien Worlds on the BSC chain. The trend of the overall market value of DeFi Kingdom is highly correlated with the number of users participating in the game.
Footprint Analytics – Market Cap
Footprint Analytics – Market Cap / Users
In terms of the token price trend, there is a certain volatility in the price of $JEWEL. As of April 27, the price is $2.86.Compared to the Splinterlands token $SPS, which currently has the largest number of users, $JEWEL has an advantage.
Footprint Analytics – Token Price & Trading Volume
Although DeFi Kingdom does not have VC financing, it is possible to build a platform with a market value of more than $241 million and a cumulative transaction volume of more than $6 billion.
- User number
In March, the number of daily active users of DFK has surpassed that of Axie Infinity, with an average daily number of about 20,000 users. Through their Tokenomics and the team’s planning and promotion of the project, DeFi Kingdom’s overall daily growth is relatively stable.
Footprint Analytics – Comparison of Users Axie Infinity and DeFi Kingdoms
From the above five dimensions, it can be seen that DeFi Kingdoms is currently in the early stage and mainly relies on LPs to motivate users or retail investors to enter the market to maintain a stable economic system. But based on the fact that its team members are anonymous and unfunded, players or investors also need to do security checks when playing to Earn and investing in.
This article is contributed by the Footprint Analytics community
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