Author: lesley@footprint.network
On May 13th, Line’s NFT subsidiary announced plans to release five NFT games in 2023. More and more game developers and projects are emerging, and web3 games are no longer just a symbol of speculation, but rather a growing number of project parties are deeply involved in them. However, declining transaction volume and decreasing user numbers indicate that real web3 games are still scarce.
Currently, there are still few high-quality games that can operate in the long-term without relying on hype. However, truly good games are based on fun, a large number of supporters, and lasting appeal, rather than pursuing short-term benefits.
The data in this report comes from Footprint Analytics’ GameFi Research page. The page provides an easy-to-use data panel that includes the most important data indicators for understanding the GameFi industry and updates them in real-time. Click here to find the latest information on GameFi-related prices, individual projects, financing rounds, and more.
Article Highlights
Cryptocurrency Macro Overview
Bitcoin (BTC) opened at $28,074 in May, reached a peak of $29,528 on May 5th, and then fell to $27,223 on May 31st.
Web3 Game Market Overview
The overall transaction volume of the Web3 game market is trending downward, and the number of users also experienced a significant decline at the beginning of this month, only slightly recovering in mid-May.
The total number of active games on the market has increased to 1,004, compared to 979 in March and 1,001 in April, and more and more new games are entering users’ sights.
Web3 Game Public Chain Data
In the web3 game market, BNB Chain, Ethereum, and Polygon are the dominant public chains, and the games on these chains account for 75% of the total number of games.
The number of daily active users in the chain game market is currently around 900,000. Polygon users rose at the end of April and early May, and then returned to normal levels.
Web3 Game Project Overview
Axie Infinity maintains its lead with $6.6 million in transaction volume.
In terms of token prices, Zodium’s token had the highest increase at 130% in May.
Web3 Gaming Investment Overview
The total financing amount in May reached 79.1 million US dollars, an increase of 76% compared to last month’s 45 million US dollars.
However, compared to April, the number of financing rounds decreased from 12 in May to 8.
Cryptocurrency Macro Overview
Bitcoin (BTC) opened at $28,074 in May, reaching a peak of $29,528 on May 5 and then falling to $27,223 on May 31. Looking at the entire month, Bitcoin prices fell slightly by 0.5%.
BTC Price & ETH Price
However, as a reference index for the market, Bitcoin has risen more than 64% so far this year (compared to $16,605 on January 1). Ethereum (ETH) has followed a similar trend, falling by less than 1% in May and rising by 58% so far this year.
However, the market should not produce a false sense of security because of the current price trend of Bitcoin and Ethereum. This month, Bitcoin’s on-chain transaction volume has decreased significantly by 13.3%. This indicates that Bitcoin’s trading activity has decreased.
Web3 Gaming Market Overview
The Web3 gaming market in May showed a slowdown, which is related to the sentiment of the cryptocurrency market and the uncertainty of the global economy.
Web3 Game Daily Txns & Daily Active Users
Footprint Analytics data shows that the overall trading volume of the Web3 gaming market is trending downward, and the number of users also plummeted at the beginning of this month, only slightly recovering in mid-May. This downward trend is within a controllable range and is not an absolute bad sign, but it gives Web3 games the opportunity to consolidate and improve their technology and design before the next wave arrives.
Monthly Game Numbers
However, game developers have not stopped. By the end of May, the total number of active games in the market had increased to 1,004, compared to 979 in March and 1,001 in April, and more and more new games entered users’ sights. The number of new games launched in the market in May slightly increased to 60, bringing the total number of games in the market to 2,381.
Although the number of new games in May rebounded slightly, the growth rate was relatively slow. As the hype around games gradually subsides, high-quality games with solid gameplay and complete token economies may receive more attention and lead a new round of market growth in the future.
Web3 Game Public Chain Data
Games Shared by Chain
In the web3 game market, BNB Chain, Ethereum, and Polygon are the dominant public chains, with games on these chains accounting for 75% of the total number of games.
Daily Active Users by Chain
The number of daily active users in the chain game market is currently around 900,000. Polygon users rose in late April and early May, and then returned to normal levels. This indicates that Polygon has attracted a batch of short-term users, possibly due to marketing activities, but has not produced long-term effects.
Monthly Volume by Chain
The future of the SUI blockchain is promising because Mysten Labs raised $300 million last year to provide high-end games on the Sui Layer 1 blockchain. With SUI chain launched on the mainnet on May 3, it is expected to increase its influence and provide a platform for a better immersive gaming experience.
Despite experiencing a market downturn for nearly 12 months, the Web3 gaming industry is still innovating and will attract more users and investors in the future.
The market winter is the best time to improve project quality.
Although the overall cryptocurrency market is still volatile, high-quality projects with strong fundamentals should continue to attract users based on their own advantages, rather than attracting attention through speculative hype or market manipulation.
Web3 Game Project Overview
According to data from May 31, Axie Infinity maintained its lead with a trading volume of $6.6 million, demonstrating its strong liquidity and stable position. This achievement is attributed to Axie Infinity’s continuous efforts to optimize the game. This month, Axie Infinity has taken a series of actions, launching an iOS version in its key markets and introducing user-created unique and customizable PFP avatars, demonstrating its focus on game design and expanding its user base. Battlefly and Illuvium also performed well in terms of trading volume, ranking second and third among all games.
Daily trends – Ranking & Trends
In terms of token prices, Zodium had the highest increase with a 130% rise in May, followed by Taroverse and Victoria VR. However, a significant increase in price does not necessarily determine a project’s profitability.
It is important to note that projects with large price increases are not necessarily well-known projects, indicating that price increases are driven by hype and speculation rather than strong support from the project’s design and user base. A rapid increase in price does not prove the project’s high quality or sustainability.
In terms of active users, on May 31, Alien Worlds had the highest number of active users with 233,684, followed closely by Sweat Wallet with 90,189 active users, and Splinterlands with 74,876 active users, which is noteworthy in a bear market.
Web3 Gaming Financing Overview
Monthly Gaming Fundraising Amount & Times
The total amount of funds raised in May reached 79.1 million US dollars, a 76% increase from last month’s 45 million US dollars, but the number of fundraising rounds decreased from 12 to 8 compared to April.
Larger investment amounts reflect investors’ confidence in the industry and their recognition of its long-term potential. However, the total amount of funds raised has slightly decreased, indicating that the market is still in a sluggish state.
The most eye-catching investment events this month include the financing of M80, Pomerium, and Illuvium, which raised $3 million, $20 million, and $10 million respectively, performing well in the overall market sentiment and worth continued attention.
The gaming financing data for May shows that despite the still-flat trading market, the capital market’s long-term confidence in blockchain games remains firm. Projects that have survived in the market turmoil are more promising.
This month’s web3 gaming news
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Line unveils five “player-centric” NFT games to be released in 2023
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The blockchain game Illuvium completes a $10 million financing round, led by Framework Ventures
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Axie Infinity: Origins will be available on the Apple App Store in some Latin American and Southeast Asian countries
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Axie Infinity launches PFP avatar minting feature that can be used as digital identity proof
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Web3 gaming studio Pomerium secures $20 million in angel investment
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BlockingncakeSwap (CAKE) launches gaming project, CAKE price rises by 20%
This article is contributed by the Footprint Analytics community.
Footprint Community is a global mutual aid data community where members use visualized data to create influential insights together. In the Footprint community, you can get help, build connections, and communicate about blockchain-related learning and research such as Web 3, Metaverse, GameFi, and DeFi. Many active, diverse, and high-engagement members motivate and support each other through the community, creating a worldwide user group to contribute data, share insights, and promote community development.
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