Are NFT games a solution to the bear market? Recently published, the report by DappRadar and BGA highlights the resilience of blockchain games in the second quarter of the year. Undermined by the implosion of the Terra ecosystem and the aggressive monetary policy of the main central banks, the crypto market largely unscrewed in the second quarter. Bringing with it the fall of the NFT market. If blockchain games have generally recorded losses, it is clear that these remain much more moderate. Without further ado, here are the main takeaways from this report.
Users and investors believe in this type of project!
The report highlights that despite the crisis, investment in the blockchain gaming sector has remained strong. In the second quarter, $2.5 billion was committed by venture capital funds. A volume well above the 4 billion dollars raised during the whole of 2021.
The report also specifies that the sector could concentrate more than 12 billion dollars of investment by the end of the year. The venture capital fund Andreesen Horowitz also announced during the quarter the creation of a fund intended to invest in the sector of blockchain games and the metaverse. This will be supplemented to the tune of 4.5 billion dollars.
Compared to the second quarter of 2021, the activity of blockchain games has increased considerably: +232%. In this second quarter, blockchain games account for 52% of unique active wallets (UAW). That is 1.1 million wallets. If the volume has certainly fallen by 7% compared to the first quarter of the year, the decline remains much more reasonable. At the same time, DeFi activity was down 18% while NFT activity was down 24%. As shown in the graph below:
Good to know: Unique active wallets (UAW) refer to unique addresses that interact with a given smart contract. In other words, they are not necessarily unique users since the same person can use different wallets to interact with a protocol.
Splinterlands remains number 1 among blockchain games!
In detail, it is the Splinterlands game that remains the most played of all. With a daily average of 283,729 unique active wallets (UAW) over the months of April, May, and June. The game has also recently changed its gaming policy. By seeking to better reward the commitment of active players. For the time being, this policy does not seem to be hitting the target since the daily number of UAW showed a drop of more than 60% in the month of June.
Second-ranked Alien Worlds has seen relative stability in its player base. Indeed, in the second quarter, the UAW only fell 4%. Third, in this ranking of blockchain games, Farmers World continues to rise. During the months of April, May, and June, the game experienced a sharp increase in its number of users: + 33%.
But all has not been rosy for blockchain games. Thus, Axie Infinity saw the price of its AXS token largely unscrewed. In the second quarter of 2022, the game had to deal with a sharp drop in its user base. Thus, 83% of players have deserted the platform. Part of this desertion is likely to be credited to the game's over $600 million hacks. For many observers, the question arises today of where will the former players of Axie Infinity go?
What about the best gaming blockchains?
In this second quarter, the Wax blockchain appears as number 1. With 393,933 daily UAW on average over the quarter. Up 14% from the previous quarter. Second, in this ranking, the Hive blockchain displays 283,934 UAW on average. Down 16%. Very active in the NFT segment, Solana is also breaking into the gaming segment.
This second quarter has considerably redistributed the cards. BSC has lost over 30% of its user base. A figure that rises to 40% for the Ronin blockchain.
Blockchain games were impacted by the fall in the NFT market!
In reality, it was a chain reaction that created this situation. The crypto market has negatively impacted the NFT market, which itself has affected blockchain applications. Compared to Q1 2022, organic NFT sales were down 29%.
And average prices fell even steeper. Taking into account the sharp drop in prices, the sales volume fell by 82%. Widely used in blockchain games or even metaverses, the fall in the sales volume and prices of these NFTs has therefore also had an impact on blockchain games.
But as we've seen, the bleeding has been largely contained despite some users' disinterest in rewards that were losing market value. As Pedro Herrera, head of research at DappRadar, points out and who seems to be pleased with the good health of the sector:
"Blockchain-based games have become one of the most promising sectors in Web3. Even with a drastic drop in the value of gaming rewards due to the collapse of gaming and metaverse-based tokens like JEWEL (-99% from January), SAND (-81%), or SPS (-80 %), Web3 games still command 52% of the sector's activity."
Battle Infinity: an emerging player in this market!
As we have seen, the blockchain gaming market is doing better than the majority of crypto market players. This leaves the opportunity for new projects to develop rapidly. This is particularly the case with the Battle Infinity platform, a Play to Earn project that allows users to compete or navigate within a metaverse to interact with other players.
The IBAT token, at the heart of this protocol, is currently in the presale phase. A phase during which it will be possible to acquire the token at the price of 1 BNB = 166,666.66 IBAT. To be able to invest in the project, the minimum entry ticket is 0.1 BNB.
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