Author: lesley@footprint.network
In August, the cryptocurrency market experienced increased volatility, with Bitcoin prices fluctuating between $23,664 and $30,057. In comparison, the gaming sector remained relatively stable, but from a macro perspective, people’s perception of Web3 games is undergoing a transformation.
Many institutions and industry builders are gradually realizing that the essence of Web3 games is not just about exploiting users in Ponzi schemes, but providing entertainment around gameplay itself. Although the temptation to accumulate wealth quickly is still significant, we see that the focus on speculative behavior in the Web3 gaming space is diminishing.
With the integration of games, NFTs, and the metaverse, some well-known Web2 IPs have brought surprises to the market during the bear market. Prominent gaming giants such as Zynga and Sony are investing resources to provide users with a more comprehensive gaming experience and attract mainstream players to enter the Web3 space. This trend is becoming increasingly apparent, highlighting the long-term potential and development direction of Web3 games.
However, this emerging field still faces risks and uncertainties. As the speculative frenzy subsides, Web3 games are gradually maturing, and participants of all kinds are starting to shift their focus from speculation to entertainment.
This report data is sourced from Footprint’s Web3 Game research page. It is an easy-to-use dashboard that includes the most important statistical data and indicators for understanding the Web3 gaming industry and is updated in real-time. You can click here to learn more about the latest information on prices, projects, financing, and more.
Key Points
Cryptocurrency Market Overview
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In August, the value of Bitcoin experienced significant fluctuations, ranging from $23,664 to $30,057.
Web3 Gaming Market Overview
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Games with over 1,000 monthly active users are still relatively few, accounting for only about 9% of the total number of games.
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The market is currently dominated by projects led by large enterprises. In contrast, smaller companies and startups are cautiously moving forward, trying to survive in the long-term downturn of the Web3 gaming market.
Web3 Gaming Public Chain Data
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Statistics show that games with over a thousand monthly active users on the BNB chain account for about 5.3% of the total games, while Ethereum accounts for 1.6%, and Polygon leads with a 10.2% share.
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Although the SUI chain has technological advantages, it has not yet translated into sustained adoption.
Web3 Gaming Project Overview
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In August, the CryptoTycoon token performed well, with a price increase of 200.23%.
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NFT Worlds saw a price increase of 68.23% this month, and a growth of 578.31% since the beginning of the year.
Web3 Gaming Financing Situation
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The integration of esports and Web3 projects is also booming in the market.
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The popularity of Artificial Intelligence (AI) continues to influence this market, with many large companies exploring the synergies between AI and Web3 technologies.
Market Dynamics This Month
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Footprint Analytics collaborates with COMBO to drive the data-driven revolution in the GameFi and Web3 fields.
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Mahjong Meta secures $12 million strategic investment.
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Game participation platform developer Conductive.ai completes seed round financing.
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Singapore Web3 entertainment company Digital Entertainment Asset (DEA) receives funding from Global Brain Corporation’s KDDI Open Innovation Fund III.
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Hungri Games raises $1.9 million in financing at a valuation of $23 million.
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AIGC, supported by a16z, completes a new round of financing for Irreverent Labs.
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Roblox is using artificial intelligence to generate “richer and more dynamic” games.
Cryptocurrency Market Overview
In August, the value of Bitcoin fluctuated greatly, ranging from $23,664 to $30,057. On August 1st, the submission of 5 Ethereum (ETH) applications caused a brief surge in the value of Bitcoin, reaching $30,000. However, the prices of BTC and ETH quickly fell due to the impact of the market weakness following the downgrading of the US government’s credit rating.
Market Cap: GameFi Tokens vs BTC
On August 8th, Bitcoin once again surpassed the $30,000 mark, possibly due to the influence of LianGuaiyLianGuail’s launch of the new stablecoin LianGuaiyLianGuail USD (PYUSD). However, it quickly plummeted to nearly $25,000. This decline was driven by a series of negative events, including reports of SLianGuaiceX selling a large amount of BTC, the China Evergrande crisis, and the massive liquidation of the cryptocurrency derivatives market, totaling $1 billion in a single day.
At the end of August, a US appeals court made a favorable ruling for Grayscale in their lawsuit against the US Securities and Exchange Commission, causing the price of Bitcoin to soar from $26,000 to $28,000, and eventually stabilize around $26,000.
Web3 Gaming Market Overview
The Web3 gaming market is thriving. This month, the number of games increased from 2,471 to 2,540, indicating significant growth in the development of new games. However, games with over 1,000 monthly active users are still relatively few, accounting for only about 9% of the total number of games. User acquisition remains a significant challenge in the current downturn of the Web3 gaming market.
Monthly Active Games
For Web2 game players, managing private keys and using wallets can be difficult. Therefore, Web3 games should prioritize providing a seamless user experience, allowing players to not distinguish between Web2 and Web3. Ethereum France President de Tychey said that the focus of game development should be on the gaming experience.
Active Users & Chg%
Carrom Blitz and Trickshot Blitz have changed the trend of active users this month. It can be seen that the market has an increase of 110,000 active users every Friday, accounting for 15% of the total number of users, but then slightly decreases. These two games are developed by Joyride on the Flow blockchain. However, other indicators such as transactions and trading volume have not shown similar periodic growth, indicating that although these games perform well in driving user engagement, they may have little impact on user spending or interaction with contracts.
The market is currently dominated by projects led by large enterprises, such as the collaboration between Animoca Brands and Yuga Labs. nWay, a game developer under Animoca Brands, is launching a new fighting game authorized by Yuga Labs. This trend has also extended to game giant Bandai Namco, which is launching an AI virtual pet NFT game.
Many industry giants, including Zynga and Sony, have entered the Web3 gaming sector, using their rich experience in game design and architecture to support the industry’s development. As they fully recognize the potential of blockchain technology, they are likely to take significant actions.
In contrast, smaller companies and startups proceed cautiously, trying to survive in the long-term downturn of the Web3 gaming market.
Web3 Gaming Public Chain Data
Games Shared by Chain
The distribution of games on various blockchains remains relatively stable, with BNB chain having the most, followed by Ethereum and Polygon. When counting the number of games with over a thousand monthly active users on the chain, those on the BNB chain account for 5.3% of the total games, Ethereum accounts for 1.6%, and Polygon leads with a share of 10.2%.
Sui Network
According to SuiVision, after reaching a record high of 65.84 million transactions on July 27th, the transaction volume of the Sui blockchain has experienced a sharp decline. By August 2nd, the daily transaction volume of Sui had dropped to around 1.479 million, only 2.2% of the peak. The number of daily active users also experienced a similar sharp decline.
This decline is related to the Bullshark event by MystenLabs, which ended on July 28th. This event brought a large number of users to the game SUI 8192, thereby increasing the visibility of the Sui blockchain, but it was difficult to establish lasting user habits and high retention rates.
Although SUI chain technology has advantages, it has not yet been translated into sustainable adoption. As the hype decreases, a monitoring operation model that does not rely on incentives will be crucial for assessing the true attractiveness and market adaptability of blockchain.
Layer2 public chains, such as opBNB and Starknet, have also attracted attention in the gaming industry. However, the current data does not show any significant trends.
Web3 Game Project Overview
CryptoTycoon
CryptoTycoon is a lightweight DeFi game platform built on the BNB chain. In August, the token in this project performed well, with a price increase of 200.23%. Since the beginning of the year, the value of the token has increased by 76.59%. In a speculative market, tokens that can sustain growth are worth paying attention to.
Game Token Price Changes in August
There are also some other projects with long-term growth in token value, such as NFT Worlds, which has grown by 68.23% this month and 578.31% since the beginning of the year. Another noteworthy project is Fabwelt, which has seen a price increase of 25.76% this month and a value increase of 466.78% since the beginning of the year. The sustained growth highlights the potential of these projects and their ability to attract investor interest in the crypto world.
Web3 Game Investment and Financing Situation
Investment continues to pour into the Web3 gaming sector, with five major financing rounds attracting considerable attention, including significant investments in companies such as Mahjong Meta ($12 million), Conductive.ai (undisclosed), Digital Entertainment Asset (undisclosed), Hungri Games ($1.9 million), and Irreverent Labs (undisclosed).
Mahjong Meta
The integration of esports and Web3 projects is also booming in the market, as demonstrated by projects such as Sorare. This month, Mahjong Meta received $12 million in financing, becoming a highlight in the market. The fusion of traditional games like Mahjong with the cutting-edge world of Web3 gaming is attracting increasing attention.
MechaFightClub
The hype around artificial intelligence (AI) continues to influence this market. Many major companies are exploring the synergy between AI and Web3 technologies, with Irreverent Labs leading the way. As a metaverse game developer, Irreverent Labs recently secured a new round of financing led by Samsung Next, indicating that investors are still paying continuous attention to AI-based projects. Irreverent Labs considers its game MechaFightClub as a Large-scale Learning Model (LLM) and plans to allow users to create videos using various input methods (such as images, text, and audio) by the end of the year, once again demonstrating the ongoing importance of AI in the technology and gaming industry.
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