Blockchain Gaming Defies Crypto Bear Market, DappRadar of DailyCoin reports

Blockchain Gaming Defies Crypto Bear Market, DappRadar of DailyCoin reports
Blockchain Gaming Defies Crypto Bear Market, DappRadar of DailyCoin reports

© Reuters Blockchain Gaming defies crypto bear market, DappRadar reports

DappRadar’s latest report claims that blockchain games are defying the crypto winter with their upward trend. With nearly one million daily unique active wallets, the gaming sector showed a bullish trend in July 2022.

Gaming dominates blockchains

As the report highlights, gaming accounted for up to 60% of blockchain activity in July.

Here are the highlights from the report:

  • Gaming in July saw approximately one million daily unique active wallets (UAW). The figure rose to 57.3%, up from 52%, month-on-month, which reports say marks a bullish trend.
  • Along with this, the value of transactions made in this segment was recorded at 857 million dollars.
  • Successful blockchain games showed a tendency to retain players, indicating real engagement.

The report goes on to highlight that blockchain and metaverse games have consistently secured increasing levels of venture capital.

DappRadar x BGA reports on games

DappRadar, in collaboration with BGA Games, recently published an exclusive report on blockchain games.

Here are some quick highlights from this report using data collected in May 2022):

  • Splinterlands topped the list of users with 350,000 daily unique active wallets, a number that is at odds with the general bear market.
  • Illuvium held its first country sale, which generated $72 million.
  • STEPN, a Move to Earn project, reached the milestone of 2 million monthly users.
  • Web 3.0 and metaverse projects raised close to $1.4 billion in investment.

Published on June 20, the report claimed that the blockchain gaming vertical outperformed the crypto winter.

What else does the report say?

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The report also sheds light on other notable trends in the industry:

  • For the first time since June 2021, NFT failed to maintain a sales volume of $1 billion.
  • New competitors, such as GameStop (NYSE: ) and Nickelodeon NFT Marketplaces, could give OpenSea a run for its money. Although OpenSea remains the largest marketplace in the area, its market share has fallen to 58.6%, down from a dominant 84%.
  • The DeFi sector has begun to recover from the Teraa (LUNA) disaster, registering a 22% increase to reach $82.3 billion in total value locked in the past month.

On the other side

  • Despite the increase in transaction volumes and UAWs, high entry costs typically act as a barrier to entry for the blockchain games, with the biggest games often requiring significant investment before actually becoming profitable.
  • This problem can be solved when there is a larger selection of high-quality games competing to attract users. Furthermore, newer games with sustainable and scalable models can serve to buck the trend of “diminishing returns” seen in the current generation of games in the long term.

Why you should care

  • With blockchain plays securing more and more venture capital investments, the P2E space seems to be living up to its promise.
  • It should also be noted that traditional video game giants such as Square Enix and Epic Games are also investing in NFTs and their integration with video games. The recent increase in investment may reflect that.
  • P2E games are seeing a steady increase in their daily user base, while the more popular games are maintaining their user base. This may indicate that the return on the first investments is good, and that the quality of the gameplay is improving.
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