Blockchain gaming revenue surges in May as investments rise to $476 million
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A DappRadar report reveals that revenue from blockchain games rose in May. Despite a slight decline in dominance, the industry witnessed a 6% month-on-month increase in unique active wallets (UAW). Gaming continued to have a significant share of activity in the chain.
The emergence of new gaming chains, such as BNB Chain and Polygon, added competition to the landscape. In addition, the rise of social dapps and the success of web3 games on iOS platforms is reshaping the gaming industry.
Illuvium’s Overworld and Illuvium Zero have ushered in a new wave of high-quality blockchain games, and investments in the sector reached $476 million in May.
State of blockchain gaming
Blockchain games have established themselves as a significant player in the crypto industry, despite experiencing a slight dip in dominance in May.
The industry witnessed the lowest number of Unique Active Wallets (UAW) since July 2021, with 711,913 daily UAWs. However, the sector showed dynamism and resilience, with a 6% month-on-month increase in gaming wallets, indicating continued growth.
The blockchain gaming sector boasted an impressive 77% dominance over the transactions of the entire decentralized application (dapp) industry.
With over 550 million transactions processed on the WAX blockchain alone, the gaming industry once again demonstrated its dominance in the web3 space in May.
Competition in the web3 gaming landscape intensified with the rise of BNB Chain and Polygon. BNB Chain secured the second largest gaming chain with over 79,015 daily UAW, closely followed by Polygon with 76,859 daily UAW. The Hive gaming chain and EOS also ranked highly.
New blockchains join the gaming movement
The Web3 gaming sector witnessed the entry of new blockchains namely Sui and Intella X. Sui, a product of Mysten Labs, showed promising growth by announcing 11 out of 14 live games added in May. Intella X, based on Polygon, also gained traction by announcing nine games.
Alien Worlds maintained its dominance as the most played on-chain game, with over 410,000 monthly unique active wallets (mUAW). Hippo Dash made an impressive debut in the parkour game, securing second place with over 150,000 UAW.
Splinterlands marked its 5th anniversary and fell slightly to third place. Flow games, including Carrom Blitz and Trickshot Blitz, returned to the top 10 rankings. SuperWalk, a move-to-earn (M2E) game on Klaytn, showed a significant increase in UAW.
With recent funding of $10 million from Framework Ventures, Illuvium launched the second round of the Overworld private beta. The update introduced new zones, Illuvials, and exciting means of navigation.
Illuvium Overworld expanded the game world and introduced movement options such as gliding and flying. Illuvium Zero started season one of the Alpha test, offering play-to-earn (P2E) opportunities and the ability to create blueprints.
The increase in investment highlights the growing confidence and interest in blockchain games and metaverse projects. Investors recognize the enormous potential of this sector and are keen to exploit the opportunities it presents.
The influx of funding will fuel innovation, development and expansion in the web3 gaming space, ultimately leading to more immersive and engaging experiences for players.
Several high-profile funding rounds took place in May, further cementing the importance of blockchain gaming in the broader crypto ecosystem. Illuvium’s $10 million funding will enable the project to continue its ambitious development roadmap and bring gameplay to a wider audience.
Another notable funding round was conducted by Dapper Labs, creator of the highly successful NBA Top Shot. The company raised $305 million in a funding round led by Coatue Management, with participation from notable investors such as Andreessen Horowitz and GV (formerly Google Ventures). The significant investment in Dapper Labs indicates the continued interest in blockchain-based collectibles and the potential for mainstream adoption.
Metaverse projects attract capital
The Metaverse sector also saw a significant influx of capital, with notable investments in projects such as Decentraland and The Sandbox.
Decentraland, a decentralized virtual world where users can create, explore and monetize their own experiences, raised $45 million in a funding round led by Blockchain.com Ventures.
The Sandbox, a user-generated content platform and virtual game world, secured $93 million in a private token sale via investments from top companies including SoftBank and Samsung Next.
The significant investments in blockchain games and metaverse projects underscore the recognition of the transformative power of this emerging technology.
The metaverse in particular has captured the imagination of investors and industry participants alike, as it represents a paradigm shift in how we interact with digital environments and engage with each other. The metaverse promises to create immersive, interconnected worlds where users can socialize, work and play, blurring the lines between physical and digital reality.
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