This report looks at cross-chain data for the blockchain industry, outlining the most important metrics and trends in GameFi in 2022.
By looking at the last year from an on-chain analytics perspective, we can map the trajectory of the GameFi industry and make more informed investment decisions and analyses in 2023.
By the numbers, 2022 will be a disastrous year. After reaching highs of excitement, investors, GameFi participants, and. NFT holders saw the value of their holdings drop precipitously. Those less fortunate lost all their holdings because they were caught in the crash of Terra, BlockFi, Celcius, FTX, or other smaller projects that failed or got hacked.
Despite this, big-name game studios have invested heavily in GameFi. Analysts still foresee blockchain games — as they become more playable — becoming one of the main tools driving mainstream cryptocurrency adoption.
But until then, most GameFi projects still fail. This means that those involved in the blockchain industry must look beyond headlines and white papers to determine what is happening within a protocol and determine its sustainability.
What is the role of on-chain analysis in the development of the GameFi industry?
For players and individual investors: The game is still difficult to get out of the death spiral cycle, and GameFi investment is still similar to a Ponzi scheme, the purpose of which is to enter as early as possible and then exit before the project collapses. If a game is played primarily for enjoyment, one must be hypervigilant to on-chain signals that a recession is imminent.
For developers: Developers must closely track cross-chain trends, as their choice of platform to launch or scale can greatly affect the success of a project. Considerations include ecosystem support, user base, and performance. Our evaluation of the GameFi program takes these factors into account.
Finally, if you’re a researcher at a venture capital firm or media outlet, your job depends on generating accurate insight into the GameFi industry. This report will take you through some in-depth data analysis.
It will answer the following 3 questions:
What’s the most critical stat for 2022, and how does it affect the outlook for the GameFi industry?
Which projects were the most important last year, and what impact did they have on blockchain gaming?
Which public chains are attracting GameFi’s development and why?
Important discovery
Overall market
The market cap of GameF tokens dropped from $27 billion at the beginning of the year to $3.3 billion at the end of the year.
GameFi saw a severe decline in monthly transaction volume, from $3.1 billion in January to $80 million in December, a relative drop of 97%.
However, the transaction volume of blockchain games remained relatively stable, bouncing around in the range of 130 million to 185 million.
BNB attracted the most new projects in total with 296
However, Polygon, Wax, and Solana saw greater relative growth, doubling and tripling their number of projects compared to 2021.
Investment and financing
Funding at GameFi has increased by 83% compared to 2021, with $5.4 billion invested.
Although in a bear market, big-name studios are not organized to enter or continue to invest in the GameFi industry
The biggest fundraising event came in April, when Epic Games, the studio behind Fortnite, raised $2 billion for its metadata project, led by Sony.
Animoca has solidified its position as the most active leader in GameFi, having closed 61 funding rounds, more than twice as many as the next most active investor.
Animoca also received the second-highest funding after Epic Games at $434 million.
GameFi users
In GameFi, more users do not correlate positively with more transaction volume or more transactions, so it is difficult to form an overall picture of on-chain activity.
However, Wax has the highest average daily active users, followed by Hive and BNB.
Depending on your perspective, this could be indicative of the strength of Alien and Splinterlands or the ubiquity of bots in those games.
Among the top 5 chains by the number of active users, Polygon has seen the most impressive growth, up 381%.
Project overview
In 2022, GMT has the highest average trading volume of any GameFi token at $541 million.
Solona becomes the chain of choice for “Play to earn” projects, including STEPN and Walken.
Of the top 5 games ranked by average GameFi transaction volume, MANA had the largest year-over-year drop of -55.6%.
Splinterlands and Alien Worlds are the most active games in 2022, with 383,000 and 228,000 average active users, respectively.
The highly anticipated so-called triple-A blockchain games, such as Illuvium and Phantom Galaxies, are not officially live in 2022.
2022 GameFi User Statistics
Wax has the highest average daily active users, followed by Hive and BNB.
Throughout 2022, Splinterlands (the main game on Hive) and Alien Worlds (the main game on Wax) are neck and neck in terms of active users. Based on different interpretations, this could either indicate the strength of the two games or the prevalence of bots in these games.
The Average Daily Active Users per Chain in 2022 Compared to the Growth Rate in 2011
Among the top five public chains, Polygon has seen the most impressive growth, with a 381% increase in active users.
Polygon is an EVM L2 built to scale Ethereum. Although the project dates back to 2017 and its token, MATIC, went live in 2019, the network is headed for a breakout year in 2022 with strong performances in DeFi, NFTs, and GameFi. The games with the most DAU per month on Polygon in 2022 are Planet IX (70K) and Benji Bananas (25K).
Project overview
GMT has the highest average volume among GameFi tokens in 2022 at $541 million.
STEPN was the last breakout success in the bull market and one of the only innovative titles to hit the headlines, introducing mobile app-based “Play to earn” gameplay. However, a month after the price of its NFT asset sneakers and tokens swelled to their peak, the game entered a death spiral and prices collapsed. Currently, the game remains the second most played game on Solana.
While Solana has had a rough time following the collapse of FTX, it has become the public chain of choice for “Play to earn” projects.
In addition to STEPN, the “Walk to Get Rich” title Walken is also built on top of Solana.
Among GameFi’s top 5 coins, MANA has seen the largest year-over-year drop of -55.6%.
This reflects a drop in confidence in its game, Decentraland. Decentraland was one of the original Big 3 GameFi and metaverse titles, along with The Sandbox and Axie Infinity, gaining widespread recognition for its high prices for in-game assets.
Splinterlands and Alien Worlds have average active users of 383,000 and 228,000, respectively.
They are the most active games in 2022. As we mentioned before, both Splinterlands and Alien Worlds are card and text based games with no 3D worlds, which makes them very primitive in form for the market leaders.
The highly anticipated so-called triple-A blockchain games, such as Illuvium and Phantom Galaxies, are not launching in 2022.
As of early 2023, a beta version of Illuvium has been launched, and the full version is expected to be available to the public by mid-2023.
This article is contributed by the Footprint Analytics community.
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 about 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.
GameFi 2022 funding situation
GameFi funding is up 83% compared to 2021
In 2022, the GameFi space will raise a total of $5.4 billion in investment, compared to $2.9 billion in 2021. Blockchain gets more money in 2022 than in 2021, and institutional investors are spooked by the new category of “chain gaming,” as Axie Infinity, The Sandbox, and Decentraland hit the headlines for the first time. 2022 is the year people realize that GameFi could become a truly disruptive force, with vast amounts of venture capital cash being used to empower traditional game studios and established blockchain companies to build ambitious projects.
Well-known studios invest in GameFi.
Some of the most high profile examples are Sony, Epic Games, Ubisoft and Nintendo.
Epic Games, the studio behind Fortnite, raised $2 billion led by Sony to build a metaverse. But as of early 2023, the exact plan is still unclear. As far as is known, the plan includes Lego. This is by far the most important fundraising milestone of the year.
Animoca becomes the most influential institution in GameFi.
The studio and investor cemented its position as the most active leader in GameFi, having closed 61 funding rounds, more than twice as many as the next most active investor. It was also the second-largest recipient of funding after Epic Games, with $434 million in funding.
Animoca is the company behind The Sandbox, Benji Bananas, Arc8 and Phantom Galaxies.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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