By: lesley@footprint.network
On May 13, Line’s NFT subsidiary plans to release five NFT games in 2023. More and more game developers and projects are emerging, and web3 games are no longer just a symbol of speculation, but more and more project parties are deeply involved in it. However, the decline in transaction volume and the decrease in the number of users shows that real web3 games are still scarce.
At present, there are still few high-quality games that can operate for a long time without relying on hype. However, really good games are built on fun, a large following, and lasting appeal, not short-term profit.
The data for this report comes from Footprint Analytics’ GameFi Research page. This page provides an easy-to-use dashboard that includes the most important data indicators to understand the GameFi industry, and is updated in real time. You can find the latest information on GameFi-related prices, individual projects, funding rounds, and more by clicking here.
Article Highlights
Cryptocurrency Macro Overview
Bitcoin (BTC) opened May at $28,074, peaked at $29,528 on May 5, and then fell to $27,223 on May 31.
Web3 Game Market Overview
The overall transaction volume of the Web3 game market showed a downward trend, and the number of users also dropped sharply at the beginning of this month, and only slightly recovered in mid-May.
The total number of active games on the market increased to 1,004, compared to 979 in March and 1,001 in April, with more and more new games coming to users’ attention.
Web3 game public chain data situation
In the web3 game market, the three public chains BNB Chain, Ethereum and Polygon dominate, and the games on these chains account for 75% of the total number of games.
At present, the number of daily active users in the chain game market remains at around 900,000. Polygon users spiked in late April and early May before returning to normal levels.
Web3 Game Project Overview
Axie Infinity maintained its lead with $6.6 million in transaction volume.
In terms of token price, Zodium’s token topped the list with a 130% gain in May
Overview of Web3 game investment and financing
Total funding raised in May reached $79.1 million, a 76 percent increase from $45 million in the previous month.
But compared to April, funding rounds dropped to eight from 12 in May.
Cryptocurrency Macro Overview
Bitcoin (BTC) opened May at $28,074, peaked at $29,528 on May 5, and then fell to $27,223 on May 31. For the month, the price of bitcoin has edged down 0.5%.
BTC Price & ETH Price
However, Bitcoin, which is a good indicator of whether the market is good or bad, is up more than 64% so far this year (compared to $16,605 on January 1). The same trend is true for Ethereum (ETH), which is down less than 1% in May and is up 58% year-to-date.
However, the market should not be lulled into a false sense of security by the fact that the current price trends of Bitcoin and Ethereum are flat. During the month, Bitcoin’s on-chain transaction volume dropped significantly by 13.3%. This indicates that Bitcoin has seen a decrease in transaction activity.
Web3 Game Market Overview
The Web3 game market in May has slowed down, which is related to the cryptocurrency market sentiment and the uncertainty of the global economy.
Web3 Game Daily Txns & Daily Active Users
Footprint Analytics data shows that the overall transaction volume of the Web3 game market is on a downward trend, and the number of users also dropped sharply at the beginning of this month, and only slightly recovered in mid-May. This decline is manageable and not an absolutely bad sign, but rather gives Web3 games a chance to solidify and improve their technology and design before the next wave arrives.
Monthly Game Numbers
However, game developers are not stopping. By the end of May, the total number of active games on the market increased to 1,004, compared with 979 in March and 1,001 in April, and more and more new games are coming to users’ attention. The number of new games released on the market increased slightly in May to 60, bringing the total number of games on the market to 2,381.
While the number of new games picked up in May, the pace of growth was slower. As the hype effect of games fades, high-quality games with solid gameplay and a sound token economy may gain more attention and lead a new round of market growth in the future.
Web3 game public chain data status
Games Shared by Chain
In the web3 game market, the three public chains BNB Chain, Ethereum and Polygon dominate, and the games on these chains account for 75% of the total number of games.
Daily Active Users by Chain
At present, the number of daily active users in the chain game market remains at around 900,000. Polygon users spiked in late April and early May before returning to normal levels. This suggests that Polygon had an influx of short-term users, possibly due to a marketing campaign, that didn’t produce long-term results.
Monthly Volume by Chain
The SUI blockchain has a promising future, as Mysten Labs raised $300 million last year to offer high-end games on the Sui Layer 1 blockchain. With the mainnet launch of the SUI chain on May 3, it is expected to increase its influence and provide a platform for a better immersive gaming experience.
Despite the nearly 12-month market downturn, the Web3 game industry is still innovating and will attract more users and investors in the future.
The cold winter of the market is the best time to improve the quality of the project.
Although the overall cryptocurrency market is still volatile, high-quality projects with strong fundamentals should continue to attract users on their own merits, rather than attracting attention through speculation or manipulating market sentiment.
Web3 Game Project Overview
According to May 31 data, Axie Infinity maintained its top position with a transaction volume of $6.6 million, demonstrating its strong liquidity and solid position. This achievement is due to Axie Infinity’s continuous efforts to optimize the game. Axie Infinity made a number of moves this month, launching an iOS version in its key markets and introducing the ability for users to create unique and customizable PFP avatars, moves that underscore its focus on game design and growing its user base . Battlefly and Illuvium also performed well in terms of transaction volume, ranking second and third across all games.
Daily trends - Ranking & Trends
In terms of token prices, Zodium’s tokens ranked first with a 130% increase in May, followed by Taroverse in second and Victoria VR in third. However, a significant price increase alone does not determine the profitability of a project.
It should be noted that the projects with large increases are not high-profile projects, which shows that the price increase is driven by hype and speculation, rather than the strong support of the project’s own design and user base. Merely the rapid price increase does not prove the high quality and sustainability of the project.
In terms of active users, Alien Worlds led with 233,684 active users on May 31, followed by Sweat Wallet with 90,189 active users, and Splinterlands with 74,876 active users, which is impressive in a bear market. Notable achievements.
Web3 Game Investment and Financing Overview
Monthly Gaming Fundraising Amount & Times
Total funding in May reached $79.1 million, up 76 percent from $45 million the previous month, but compared to April, the number of funding rounds dropped from 12 to eight.
The large investment amount reflects investors’ confidence in the industry and recognition of its long-term potential. However, the total number of financings fell slightly, indicating that the market remains subdued.
The most eye-catching investment events this month include the financing of M80, Pomerium, and Illuvium, which respectively raised $3 million, $20 million, and $10 million. These projects performed well despite the overall market sentiment. These projects deserve continued attention.
The game financing data in May shows that although the trading market remains flat, the capital market’s long-term confidence in blockchain games remains firm. Amid the turmoil in the market, the projects that survived were more promising.
web3 game news of the month
- Line reveals five “player-first” NFT games to be released in 2023
- Chain game Illuvium completes 10 million US dollars in financing, led by Framework Ventures
- Axie Infinity: Origins will be available in the Apple App Store in select countries in Latin America and Southeast Asia
- Axie Infinity launches PFP avatar minting that can be used as digital ID
- Web3 game studio Pomerium secures $20 million in angel investment
- PancakeSwap (CAKE) launched a game project, and the price of CAKE increased by 20%
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.
