The crypto gaming sector has fallen more than 60 percent since the start of the year, in line with the broader cryptocurrency market downturn. What the hell happened to Web3 games? This article will give you an overview of the overall landscape of Web3 gaming today.
GameFi is underperforming the market/DeFi by market cap:
- Overall market: -47%
The relationship between the falling market cap and the rising trading volume indicates a huge market sell-off for GameFi tokens between February and May 2022.
There are about 1575 projects in the entire game market, with about 40% concentrated on BSC, 26% on Ethereum, and 15% on Polygon. And game-specific chains like ImmutableX, Gala Games, WAX, Enjin, and WemixNetwork have only 1% to 6% market share.
And, only 33% of GameFi projects are playable right now, and 65% are still in development.
The reason for this is probably because most gaming-related projects have received around $12 billion in funding so far in 2021. In the next 2-3 years, we will see more games coming online.
38% of GameFi projects choose a web browser to host their games, followed by mobile (37%) and PC clients (24%).
Many game project development centers around action and role-playing. And the recently hyped Web3 games, like Move-to-Earn (eg Stepn, Genopets, and SweatEconomy) and idle games (AxieInfinity and illuvium), actually occupy a very small place in the gaming sector, less than 4% of all GameFi projects. %.
As of now, the best performing game tokens are from StepN’s GMT (+615%) and Binary’s BNX (+115%); the worst performing tokens are THG from ThetanArena (-98%) and CRA from PlayCrabada ( -97%).
Note: In this comparison, good token price = good game.
In the NFT sales in the past 30 days, 4 of the top 5 NFT collections on Ethereum are Yuga Labs’ PFP, Sorare is the only game-related NFT, but in other chains, the top 5 NFTs are all game-related NFTs!
Nonetheless, these NFTs are not indicative of the game’s popularity. In fact, the popularity of NFTs related to games has been much lower than that of PFPs and art. The transaction volume of game NFTs is so large, which also shows that the turnover of these NFTs is huge, and people are not willing to take them for a long time.
Therefore, the measure of a game’s popularity is actually the number of players. But 99% of “Web3” games operate off-chain, so this game metric is actually opaque.
Instead, we use Daily Active Addresses (DAA) to measure in-game smart contract related activity (eg, minting, trading, staking).
From the DAA’s point of view, the game rankings have now changed.
The top five blockchain games ranked by DAA are:
- Solitaire Blitz
As mentioned before, good token price = good game. While Alien World’s TLM has trended down over the course of the year, its DAA has increased (or rebounded halfway through) over the same period, an inverse relationship that suggests its players have no financial incentive, just to play the game.
IMPORTANT: This is a multifaceted variable that we need to consider, including in-depth gameplay and design. Therefore, we see a discrepancy between game token rankings and game project DAA rankings. Any metrics other than DAA, including DAU/MAU/Retention metrics are very opaque.
The token model is also why the GameFi project is currently struggling, and Web2 game creators hate it. Tokens attract speculators, causing short-term token inflation that disrupts the game’s economy.
All in all, the versatility of tokenomics should be suitable for game design, including as a psychological tool, not just a “money-making” mechanism.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/web3-game-status-quo-the-market-performance-is-lower-than-the-overall-token-and-the-game-is-seriously-fragmented/
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.