Calmdonut

Calmdonut

26-08-2022

12:30

State of Crypto Gaming Market. - Market landscape and trends - Market performance This thread is useful to understand the general web3 gaming landscape.

1/ GameFi performed worse than General market/DeFi by mcap: YTD basis: General Market: -47% DeFi: -62% GameFi: -63% *Stablecoins, Yield-bearing tokens, wrapped tokens, and in-game currencies are excluded from all figures.

2/ Negative association between the declining mcap and increasing trading suggests heavy market sell-offs of the GameFi tokens between Feb-May 2022.

3/ There are ~1,575 GameFi projects. 40% on @BNBCHAIN 26% on Ethereum 15% on @0xPolygon Game-specific chains like @Immutable, @GoGalaGame, @WAX_io, @Enjin, and @WemixNetwork only have between 1% to 6% of the market share.

4/ Only 33% of all GameFi projects are now playable, while 65% are still under development.

5/ This makes sense because most gaming-related projects received funding between 2021 and today ~$12bn. H/t @dantwany We gonna expect more games gonna go live within 2-3 years.

5/ 38% of GameFi projects chose Web browsers to host their games followed by mobile phones (37%), and PC clients (24%).

6/ Many development efforts are centered on action and RPG. Recent hype on web3 games such as move-to-earn (e.g., @Stepnofficial, @genopets, and @SweatEconomy) and auto-battlers (@AxieInfinity and @illuviumio) are actually super small < 4% of all GameFi projects.

7/ Most game tokens have the poorest YTD performance compared to other categories. Best performing tokens: GMT from StepN (+615%) BNX from @binary_x (+115%) Worst performing tokens: THG from @ThetanArena (-98%) CRA from @PlayCrabada (-97%) Note: Token price =! Good games.

8/ There is a lot of stuff to decipher here won't go through it. You’ll have to read my article to see the full analysis of the price performance chart sorry.

9/ Past-30 day NFT sales: Top 5 Ethereum NFT collections accounted for 33% of the chain’s total NFT volume. 4 of which are PFPs by Yuga Labs. Sorare is the sole gaming-related NFT. The top 5 collections on other chains are dominated by gaming-related NFTs!

10/ … But these top-selling gaming-related NFTs aren’t indicative of the game's popularity. In actuality, the gaming-related volume has been *always* considerably lower than that of PFPs and Arts.

11/ That said, gaming NFTs have higher velocity than Art/PFPs. A myriad of gaming assets is to be collected, utilized, and changed hands.

12/ So the better indicator of a game's popularity is the number of its players. But 99% of “web3” games are hosted off-chain, so game metrics are actually opaque.

13/ As proxies, we use daily active addresses (DAAs) to gauge the game’s smart contract-related activities (e.g, minting, trading, staking). *Sometimes I look at NFT holders as a proxy, depending on the game.

14/ Via DAAs, the ranking has now changed. Many users play games from BNB Chain, WAX, and Polygon, which rank higher than their 30-day sales volume. Top 5 popular blockchain-based games by DAA. @AlienWorlds @AxieInfinity @onjoyride (Solitaire Blitz) @splinterlands @UplandMe

15/ Token price =! Bad game. Alien World’s TLM has seen a downward trend over the course of the year, BUT its DAA increased (or rebounced mid-way) in the same period. The inverse relationship signals its players are not financially motivated.

16/ IMPORTANT NOTE: It's a multi-faceted variable we need to consider, including in-depth gameplay and design. Hence why we are seein a discrepancy between game token ranking versus game project DAA ranking.

17/ But beyond that, any metrics since DAU/MAU/Retention metrics are often extremely opaque. All in all, the versatility of token economics should be tailored to the game design, including as psychological tools beyond just a "profit" making mechanism.

17/ The main key takeaway is that GameFi projects are suffering for the same reasons that web2 game creators detest RMT It attracts speculators and earner-first gamers (i.e., mercenary players), causing short-term token inflation and disrupting the game's economy.

19/ Full *in-depth* analysis can be found in my article. It touches *beyond* price performance fyi. DM’s open for any feedback.



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