According to a recent report by DappRadar, a crypto data firm, the third quarter of 2023 demonstrated the dynamic nature of blockchain gaming. One of the key takeaways of the report was that web3 gaming projects earned $600 million during the quarter, bringing the total for the year to $2.3 billion.
This investment figure, although impressive, represents a 38% decrease from the previous quarter, where DappRadar had tracked a staggering $973 million in crypto gaming investment in Q2 2023. Despite slight dips in momentum, blockchain gaming continued to hold its position as a leader in the dApp world. However, the rise of other sectors like social dApps indicates a shift in user engagement dynamics.
Studios like Epic Games, Telltale Games, and Team17 have made staff reductions, and even gaming-focused crypto companies like Star Atlas studio ATMTA and Otherside developer Yuga Labs have faced layoffs. Wax maintained its dominance, but Skale and zkSync emerged as rising stars, especially within the gaming community. The entry of new players signals a promising future for Web3 gaming.
Axie Infinity emerged as a frontrunner once again. The game recorded the highest NFT transaction volume in Q3, with a total volume of $90 million. Following closely was the NFT trading card game Gods Unchained, with a transaction volume of $55 million.
Top games like Alien Worlds and Splinterlands continued to dominate. The ‘move-to-earn’ trend gained traction with games like Sweat Economy and SuperWalk. As exemplified by Treasure DAO, Casual gaming studios hinted at a potential future trend.
While there was a dip in land trading activity, the enthusiasm for metaverse and virtual world dapps remained strong. Animoca Brands secured $20 million in funding for their Mocaverse initiative, aiming to redefine the narrative of Web3 gaming and metaverse culture.
The report emphasized the need for adaptability and foresight as the gaming industry navigates the shifting dynamics across sectors and platforms. While blockchain gaming’s growth trajectory remains positive, balancing user engagement across different sectors presents challenges and opportunities.
Between July and September 2023, a staggering $262 million was allocated to investment firms in the blockchain gaming space. Additionally, $213 million was invested directly into game and metaverse projects, while $125 million was channeled into blockchain gaming infrastructure, showcasing the diverse areas of interest within the industry.
In parallel news, it was reported previously that Web3 gaming platform Immutable partnered with Amazon Web Services (AWS) to offer more to game developers to leverage Amazon’s vast resources.
