Original author:stella@footprint.network
Data Sources:Blockchain Game Research Page - Footprint Analytics
In February 2024, the blockchain gaming sector experienced significant growth, driven by rising cryptocurrency prices and a surge in active users. However, the industry still faces challenges in maintaining user engagement and retention rates, and both transaction value and number of transactions have fallen short of expectations.
The blockchain platform is actively building partnerships with content creators such as Web2 Game Studio to pursue growth opportunities. Public chains focus on the collaborative development between games and platforms, and game developers are committed to expanding game IP, aiming to broaden player participation and enrich the entire ecosystem.
The data for this report comes from Footprint Analytics Web3 game research page. This is an easy-to-use dashboard containing the most important statistics and metrics for understanding the Web3 gaming industry, updated in real time. You can clickhereGet the latest information on pricing, projects, financing and more.
Market review this month
In February 2024, both Bitcoin and Ethereum showed significant growth. Among them, Bitcoin rose strongly, with an increase of as much as 46.5%. The closing price at the end of the month reached $62,404, breaking through the $60,000 mark for the first time since the fourth quarter of 2021, and is only 9% away from its historical high. Ethereum performed even more impressively, with an increase slightly exceeding that of Bitcoin, reaching 48.1%, and closing at the end of the month at $3,383.
Data Sources:Bitcoin and Ethereum Prices - Footprint Analytics
The significant rise in the cryptocurrency market in February was driven by a combination of factors. Among them, the U.S. spot Bitcoin ETF attracted up to $6 billion in capital inflows in February, a figure that highlights investors firm confidence in cryptocurrencies as an effective store of value. In addition, market expectations for the Ethereum Cancun upgrade in March and the Bitcoin halving event in April have further pushed up prices. Together, these factors have provided strong support for the rise in the cryptocurrency market.
However, broader market dynamics, such as inflation concerns and Federal Reserve policy, may pose challenges to sustained growth. The increase in inflation in February means that the expected interest rate cut in the United States may be postponed until later this year or even later, which undoubtedly creates uncertainty for the continued growth of the cryptocurrency market.
Blockchain gaming market overview
Amid strong growth in cryptocurrencies, the market capitalization of blockchain gaming tokens surged 54.0% in February to $18.5 billion.
In February, the number of daily active users (wallets) continued to rise, reaching 2.3 million, an increase of 28.9% from January. The unremitting efforts of blockchain game industry builders have successfully attracted more Web2 game studios and players into the Web3 game field, promoting the rapid development of the industry.
Data Sources:Blockchain Game Daily Active Users - Footprint Analytics
However, the picture for user engagement and retention is less positive than attracting new users. Most Web3 game developers still face major challenges in these two aspects, according toFootprint AnalyticsAccording to the data, the increase in transaction amount and number of transactions in February was less than expected.
Data Sources:Monthly transaction amount and number of blockchain games - Footprint Analytics
In the context of the broader Web3 gaming market, its impact on other blockchain areas has gradually become more prominent, especially in-game NFTs.
Gas Hero, the second game developed by StepN team Find Satoshi Lab, is an illustrative case. The game announced on February 28 that it would return to closed beta due to major difficulties. Although the Gas Hero NFT series saw a surge in trading volume after its successful launch in January, by February, its trading volume dropped sharply by 87.2%. This obvious downward trend had a direct impact on Polygon and Mooar (NFT trading markets), with NFT trading volumes on these two platforms falling by 80.8% and 87.2% respectively.
Blockchain game public chain data
February’s game rankings show,Ronin、BNB chainandPolygonIt performed well in terms of user activity, occupying 29.1%, 13.4% and 13.1% of the market share respectively. In terms of transaction volume,Ethereum, BNB chain and Ronin are at the forefront, showing strong market performance.
Data Sources:Proportion of active game players on each public chain - Footprint Analytics
Public chains are seizing growth opportunities through in-depth cooperation with content creators. Facing local regulatory challenges, South Koreas Web3 game developers are actively turning their attention to the global market to find broader development space for their blockchain games. As a leader in this trend, Oasys not only provides Layer 1 network, but also launches Layer 2 network based on Ethereum to provide game developers with diversified technical support. Recently, Oasys announced a strategic cooperation with Com 2 uS, a well-known Korean game developer, and then joined hands with Metabora SG, the Web3 game department of Korean Internet giant Kakao.
In addition, expanding the ecosystem through mutual growth between games and blockchain platforms is another measure for public chains to gain growth. Web3 gamesPixelsMigrate from Polygon to Ronin at the end of October 2023, taking full advantage of Ronins excellent interoperability and marketing support. This shift has significantly increased the game’s popularity and on-chain activity. In February alone, Pixels achieved more than 1.5 million on-chain interactions, and the number of users is approaching the 1 million milestone. This growth trend has undoubtedly had a positive impact on Ronin, highlighting the mutual benefits and win-win results brought about by the cooperation between the two parties.
In addition, Pixels launched the PIXEL token in February and combined the “play and earn” airdrop event with the Binance Launchpool reward program to further enrich the gaming experience. In order to reward Ronin supporters, Pixels also announced an airdrop of a total of 20 million PIXEL to users who staked Ronin RON tokens to reward Ronin supporters.
Blockchain Games Overview
In February, the activity of the blockchain game market remained relatively stable, with a total of 2,880 games remaining active. However, it is worth noting that the share of games with more than 1,000 users dropped slightly from 8.3% to 7.9%. Although the overall number of active users increased by 28.9%, this growth did not lead to more games becoming active, even when the market showed signs of the first signs of a bull market. This shows that only a few blockchain games have successfully attracted an expanding player base, while most games still face the challenge of weak user growth.
Data Sources:Number of active blockchain games per month - Footprint Analytics
Some games are actively expanding their game intellectual property (IP) to enrich their content and attract more players. Bali Games, a well-known Korean mobile game developer, successfully launched the RPG game Axie Champions based on the Ronin blockchain. In partnership with Sky Mavis, the developer of Axie Infinity, this game cleverly incorporates elements of the popular Axie Infinity IP to bring players a new gaming experience. Players also have the opportunity to receive AXS tokens as rewards while participating in the game, which undoubtedly increases the attractiveness and playability of the game.
At the same time, the continuous launch of new games continues to inject vitality into the market. Among them, first-person shooter gamesMATR1X FIRESince its launch in February, it has quickly attracted more than 400,000 daily active users and has become a new favorite in the market. In addition, MATR1X, as a comprehensive platform, cleverly combines artificial intelligence (AI), Web3 technology and e-sports, and is committed to creating unique and innovative game products.
Blockchain game investment and financing situation
In February, the Web3 gaming field continued to maintain strong development momentum, successfully attracting 19 rounds of financing, totaling US$83.6 million. This series of financing activities not only demonstrates the great appeal and broad prospects of the Web3 gaming industry, but also reflects investors continued optimism and firm confidence in this field.
Investment and Financing Events in the Blockchain Game Field in February 2024
However, among the above 19 rounds of financing activities, a whopping 89.5% of the financing amounts were less than US$10 million, reflecting investors more prudent investment strategies in the field of blockchain games.
Several game studios and games, such as Brawl Studios (BitBrawl), Matr1x FIRE, and Pixels, have successfully received new financing. At the same time, as a high-profile field, gaming platforms have also emerged with a number of outstanding companies, such as Crystal Fun, Ultiverse and OVERWORLD, etc., all of which have made significant progress in their respective fields. It is particularly worth mentioning that OVERWORLD, incubated by the Xterio ecosystem, successfully received US$10 million in seed round financing and is committed to pioneering cross-platform RPG games.
The spotlight is also on the gaming infrastructure sector. Infrastructure provider Ready Games Network (READYgg) and blockchain game data analysis platform Helika have successfully completed the latest round of financing.
Gambling platform Monkey Tilt successfully received the largest financing in February, totaling US$21 million, with participation from well-known institutions such as Polychain. This major financing event and ourBlockchain Game Annual Report 2023The forecast is consistent, further confirming that the GambleFi field still has huge growth potential while facing regulatory challenges.
Highlights this month
Crypto gaming company Gala Games has launched the GalaSwap exchange and offers token rewards.
LBank, the leading global digital asset trading platform, announced the integration of Oasys into its diversified trading portfolio.
Bitcoin Cats launches 1 CAT Chain testnet to enter the blockchain gaming field.
Crypto gaming platform PlayDapp lost $290 million worth of tokens in two attacks.
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The content of this article is for industry research and communication only and does not constitute any investment advice. Market risk, the investment need to be cautious.
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