This article briefly:

A recent report from DappRadar shows that the blockchain gaming industry is gathering momentum.

On-chain gaming activity grew 1.31% to 858,621 dUAW, accounting for 48% of dApp activity in January.

The total investment in blockchain games and metaverse projects was $156 million, with more investors focusing on long-term value.

The blockchain gaming industry continues to show signs of strength in 2023, according to a new report released Tuesday.

A new report from DappRadar and the Blockchain Gaming Association (BGA) is worth a read.

On-chain gaming activity grew 1.31% to 858,621 dUAW, accounting for 48% of dapp activity in January. On-chain gaming activity refers to in-game transactions that occur on smart contracts on the blockchain.

Gaming tokens have been a growth area

Gaming tokens have been a promising growth area for the crypto ecosystem. The top gaming tokens have seen an average increase of 122% in market cap, with GALA leading the pack with 218% and $384 million.

As of January 31, ApeCoin led the market with a market value of $2,112,042,188, up 51.99% from January 1. SAND followed closely with a market value of $1,254,095,738, up 86.64%.

ApeCoin has seen a surge in popularity due to the hype surrounding the Yuga Labs ecosystem. The launch of Sewer Pass in January was another high point for the NFT giant, with the Sewer Pass being the key to play a skill-based game called Dookey Dash.

Yuga Lab’s recent collaboration with Timex, featuring the Bored Ape Yacht Club and Mutant Ape Yacht Club non-fungible tokens (NFTs), has generated further interest.

GALA recently acquired a mobile game studio with over 20 million active users and over 15 games. As a result, the Gala blockchain network has significantly expanded its reach. In addition, an artist on the Gala Music platform received a Grammy nomination, bringing more attention to the platform.

According to Cryptoslate, FLOKI is one of the best performing gaming tokens so far this year. The token is up 239% in the past 30 days but is still down 88% from its ATH.

However, gaming tokens have not received the same hype as AI tokens, which saw impressive growth earlier this year.

Blockchain gaming: Is it mature?

In January 2023, 10 investments in the blockchain gaming industry raised $156 million. The largest investment was by Courtside Ventures, whose third early-stage venture capital fund totaled $100 million.

In addition to Courtside Ventures, 64% of the investments made in January 2023 were for investment companies. Close behind was Metaverse Technologies, also known as "Metaverse-oriented companies," at 11.5%. DappRadar's report noted that investors in blockchain games are focusing on long-term value. This is a promising sign, as many observers have criticized the industry for poor user experience.