August 2022 GameFi Report

Sept. 9 2022, Daniel

Data Source: GameFiIt has entered a stage of sharp decline in the number of new users, but the average transaction volume of users is steadily increasing. It can be seen from this that in the current market, users may be more inclined to actively play games. The August GameFi data can help us understand which projects and ecosystems are sustainable in the long run.

Since June, Splinterlands continues to run neck and neck with Alien Worlds as their user base has steadily increased. In contrast, the once-promising Farmers World continued its downward trend, with heavy user losses.

Overall market overview

key points

Overall market overview

• After nine straight months of decline, total GameFi transaction volumes saw their first month-over-month moderation, rising 28% -- but not enough to break the overall decline and cause for celebration.

• For some perspective, trading volume in August was 93.5% below the December 2021 high at the height of the bear market.

• While the number of transactions per user has decreased, the number of transactions per user has increased - no immediate conclusions can be drawn. Still, this could mean that players in today's market are more likely to be actively participating in and enjoying the game.

• Financing and Investment

Financing and Investment

• The amount of funds raised in the GameFi space fell from $2.14B to $1.37B, a 36% quarter-over-quarter decline. The number of rounds also continued to decline sharply.

• In August, 4 of the 10 largest funding rounds went to game developers and studios.

• This reflects the continuing trend of a bear market, with investors placing big bets on Web3 game studios and traditional developers, and seeking access to GameFi.

• Animoca Brands, which has raised an additional $45 million in funding rounds in August, has dozens of blockchain games in its portfolio, including The Sandbox, Crazy Defense Heroes and the upcoming Phantom Galaxies. The round brings the company's total investment funding to $775.3 million.

GameFi users

• MAU continued its sixth monthly decline (-9.4%), while GameFi's new users/participants increased 19.8% MoM.

• The distribution of users among the major chains has not changed significantly. However, ThunderCore rose rapidly, accounting for 4.5% of users. The biggest game on ThunderCore is JellySquish, averaging around 400-600 users per day in August.

Project Overview

• Splinterlands has been steadily rebuilding since its user count flash crash in June, growing 54% from its June 6 low to its August 26 high.

• Alien Worlds continues its neck-and-neck battle with Splinterlands for the most popular blockchain game.

• Interestingly, both Splinterlands and Alien Worlds are relatively basic card and text-based games, with no way for the user to control characters or interact with the 3D world - showing the primitiveness of the current GameFi industry.

• Farmers World continues to lose users, hitting an August low of 66,228 DAU on the 30th, down 55% from its May ATH.

Crypto Macro Overview

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GameFi didn't bounce back quickly on macro news

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Footprint Analytics - GameFi Token Market Cap

Most worryingly, GameFi's new user numbers continue to be extremely low. This is because the GameFi industry requires a greater investment of resources and time than other industries, requires active participation to generate revenue, and is highly speculative

Splinterlands and Alien Worlds show sustainable player bases

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Footprint Analytics - August Top 5 Games by Users

Interestingly, both Splinterlands and Alien Worlds are relatively basic card and text-based games, and the user doesn't have the ability to control characters in the immersive world. But they involve the player's strategy to win and achieve profitability.

Both are far from what people imagine games will be in 2022 (the next major lineup of games, including Illuvium and Phantom Galaxies, aims to fix that.)

Investors bet big on game developers and studios

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August Monthly Report - Funding, Monthly Investment Trend

August's top funding round reflects a long-standing trend - investors are closing funding for Web3 game studios, while traditional developers are looking to enter GameFi. In this bear market, studios and developers have had significantly more success than GameFi infrastructure projects or individual games.

Animoca Brands, which has dozens of blockchain games in its portfolio including The Sandbox, Crazy Defense Heroes and the upcoming Phantom Galaxies, raised $45 million in funding rounds in August. The round brings the company's total investment capital to $775.3 million.

Summarize

Summarize

By the numbers, the GameFi industry had a terrible August, with little relief from a recovery in Ether prices.

Overall transaction volume, number of new projects and investments remained at the July average or even lower.

The Footprint Community is a global, mutually supportive data community where members leverage data visualizations to co-create communicable insights. In the Footprint community, you can get help, establish links, and exchange learning and research on blockchains such as Web 3, Metaverse, GameFi, and DeFi. Many active, diverse, and highly engaged members inspire and support each other through the community, and a worldwide user base is built to contribute data, share insights, and drive the community forward.

This article comes fromFootprint Analyticscommunity contribution

The above content is only a personal opinion, for reference and communication only, and does not constitute investment advice. If there are obvious understanding or data errors, feedback is welcome.

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The Footprint Community is a global, mutually supportive data community where members leverage data visualizations to co-create communicable insights. In the Footprint community, you can get help, establish links, and exchange learning and research on blockchains such as Web 3, Metaverse, GameFi, and DeFi. Many active, diverse, and highly engaged members inspire and support each other through the community, and a worldwide user base is built to contribute data, share insights, and drive the community forward.