Crypto Winter, aka a bear market, is not happening anymore, it is here. However, the broader blockchain gaming space remains resilient amid growing interest in so-called prize-winning games and land sales for the metaverse.
According to the latest BGA Blockchain Game Report from analytics site DappRadar, 1.15 million daily UAWs interacted with blockchain games on average in May. However, the figure was down 5% from the previous month.
Defying the winter crypto trend, blockchain games have confirmed their status as the vertical that best navigates bear season. The report further notes that macro indicators for gaming signal a bullish scenario for the blockchain gaming ecosystem, as gaming dApps now account for 52% of total dApp industry activity.
This was on top of the fresh $1.4 billion pumped into Web3 games and associated metaverse infrastructure in May alone. The other notable investment was the $725 million raised by Dapper Labs to further expand the Flow ecosystem.
The crypto market capitalization has fallen below $1 trillion for the first time since 2020 – and in hindsight, a number of big names in the crypto industry have made painful layoffs. Similarly, activity in the dapps industry fell to its lowest point since last September, recording 2.22 million daily unique active wallets (UAWs).
The play-to-earn gaming metaverse also continues to attract massive investment and on-chain metrics and macro events signal a positive outlook for the blockchain gaming industry.
According to the DappRadar x BGA Blockchain Games report for May 2022, Splinterlands maintains its position as the top blockchain game with 350,000 daily UAWs in May while taking a big step towards decentralization.
The report says Illuvium generated $72 million from its first land sale, showing the benefits of Layer2 solutions like Immutable. The game developers managed to sell the first plots of land in the game despite unfavorable market conditions.
Gaming Growth Will Withstand Crypto Bear Market
Another notable milestone was reserved for STEPN, which recorded 2 million monthly users as the move-to-earn (M2E) paradigm continues to add exercise enthusiasts. As the name suggests, M2E allows users to earn token rewards based on their physical activity.
Along the same lines, Splinterlands was the most played blockchain game in the industry according to on-chain activity, having attracted 350,000 daily UAWs, falling only 4% from April figures.
Additionally, the report states that Galaverse is revealing major plans for the Gala ecosystem, including GRIT, Project Saturn, and major updates for TWD Empires and Mirandus.
Axie Infinity, once the most played blockchain game based on off-chain activity. still feeling the ramifications of hacking the Ronin’s bridge. Axie’s on-chain activity is down -39% from April, but is still 55% higher than May 2021.
“Blockchain gaming is proving to be a true survivor during this bear market. We’re about to finally see a fair amount of blockchain games with truly immersive gameplay mechanics that take entertainment to the next level. We will complete the transition from play to win to play and win,” the report concludes.
The Blockchain Games Report #5, developed in collaboration with the Blockchain Game Alliance (BGA), describes the factors driving the blockchain ecosystem, using metrics and data to create an understanding of the latest trends. The report summarizes different market scenarios to provide a basic overview of the market as it relates to DeFi, NFTs, gaming, and everything in between.