It seems that despite the very negative reception by the mainstream market, blockchain gaming has seen incredible growth just this year alone. Across the financial landscape, big name venture capital firms such as software juggernaut Animoca Brands, and Sequioa Capital have been showing a significant outpour of support for the promising yet polarizing subsector of gaming.
In a recent financial report released by DappRadar and Blockchain Game Alliance (BGA), there has been an increase of over 2000% increase in activity and overall growth showing the growing confidence in the market of blockchain gaming. This is despite the Ronin hack, which is considered the largest DeFi hack of all time, the poor performance of cryptocurrency globally, and the ongoing conflict in Ukraine.
This quarter alone has recorded over $2.5 billion in investments in blockchain gaming with no signs of stopping. In fact, at the rate the investments are coming in, it is expected that investments by the end of the year will be larger by 150% compared to 2021.
This does follow a growing trend seen in the NonFungible.com report released earlier this year. The report indicated that blockchain and NFT games had the second-highest amount of transactions in the NFT space with $5.7 billion in transactions. It came only second to NFT collectibles.
The report also goes on to show that 52% of blockchain activity is being done on blockchain games with a total of 1.22 million unique active wallets (UAW) daily being used in these games. Axie Infinity consists of the largest chunk of that activity.
Investor confidence is also at an all-time high with companies such as Animoca Brands investing around $360 million in $5 billion valuations and Sequoia Capital leading a $450 million investment in the Polygon network to encourage the growth of blockchain games. There are also several other investments made in blockchain gaming technology including Yuga Labs and Immutable-X.
What does this mean for the blockchain gaming community?
It’s simple. We all know that blockchain games have consistently received negative stigma from the mainstream community even when big studios such as Ubisoft, Square Enix and SEGA declared their desire to integrate NFTs into their games. Even A popular card auto-battler was also review bombed on Steam after it was acquired by FTX and announced plans to put NFTs into the game.
Cryptocurrency values have been also been on a downward trend as of late, not to mention the decline of active users on Sky Mavis’ Axie Infinity and their recent Ronin hack which is considered one of the biggest DeFi hacks of all time. Despite this, a lot of investments are being made into cryptocurrency and blockchain games than ever before, even more than last year. This simply means there are more opportunities for existing NFT gaming companies and new companies to get into the industry and start their own blockchain game business.
The reports also hinted that the growth shows massive opportunities that will become available to anyone looking into this market. Blockchain games are even considered some of the most enticing aspects of dapp industry. Most movements with blockchain technology and decentralized apps are being done on game dapps Even Morgan Stanley reported that the potential of the metaverse could easily reach $8 trillion.
The financial confidence in the blockchain gaming industry will spur the growth of even more players in the industry which will push for better, higher quality games, that allow users like you and me to have a say in the direction of development while at the same time earn from the games as well.