Blockchain gaming numbers were affected by the wider bear market, leading many observers to criticize the existing models and the utility of most projects. The total sector recorded a total investment of $600 million in Q3 2023, raising total investor figures this year to $2.3 billion, as reported by crypto analytics firm DappRadar.
The Impact of the Bear Market
The figures posted in the last three months show that the market retracted by 38% in terms of investments from $873 million in Q2 2023. This year’s total inflows have only reached 30% of last year, which indicates a relatively poor performance.
Despite the reduced flow of institutional investors, the industry has managed to maintain an average of 786,766 daily active wallets, representing a 12% growth from the previous quarter. Moreover, decentralized virtual world applications have experienced high trading volumes with 28,000 land sales accumulating $12 million.
However, the industry has also been impacted by recent turmoil, including declining figures, leading to layoffs, slow market adoption, and reduced investments.
The Potential for Growth and Improvement
Nevertheless, traditional players in the blockchain gaming space are optimistic about the future. Recent developments around many projects, particularly in gaming-centric investment companies, suggest a gradual flow back to the market.
Alien Worlds has remained the most played blockchain game in the last quarter, followed by Axie Infinity and Gods Unchained. Jeffrey Zirlin, the co-founder of Sky Mavis, the team behind Axie Infinity, expressed his confidence in the continued competitiveness of the blockchain gaming space. He also highlighted the rewards that his team offers to players, including $472,000 worth of AXS tokens every season for six weeks, as well as tournaments and other community-inspired initiatives.
Jeffrey Zirlin: “Bear market hard times—that’s needed for evolution. You cannot evolve when you’re going through a great boom. You will change in other ways, but in terms of figuring out the next thing, that’s what these times are for.”
Indeed, the bear market can act as a catalyst for improvement and innovation. It provides an opportunity for the industry to identify its shortcomings and find ways to enhance user interaction and overall operations.
The report also emphasizes the importance of adaptability and foresight in this ever-evolving domain. While the growth trajectory of blockchain gaming remains largely positive, the evolving dynamics across sectors and platforms call for continuous adaptation and forward-thinking strategies.
Report Conclusion: “While the growth trajectory of blockchain gaming remains largely positive, the evolving dynamics across sectors and platforms emphasize the need for adaptability and foresight in this ever-evolving domain.”
