Web3 games have the potential to become a significant player in the gaming industry, contributing to a substantial market share over the next decade. However, as with any developing innovation, the realm of Web3 gaming is not without its challenges. The industry has made a lot of promises and progress, but it’s important to question whether we’re on the right track. Are we heading in the right direction, and what steps must be taken to tackle challenges and fulfill the promised value in this new era?
Before we go further, let’s take a look at the current state of the market.
Current state of Web3 gaming
Since 2021, gaming has been a major force in the Web3 space, bringing excitement, significant funding, and innovation. The investment landscape has seen a great deal of activity, as shown in the 2022 Blockchain Games Report from DappRadar. Blockchain game investments grew from US$27 million in 2019 to US$7.6 billion in 2022.
According to DappRadar’s “State of Blockchain Gaming in Q1 2023” report, investments in blockchain gaming and metaverse projects increased by 12.95% to reach US$739 million, suggesting a hopeful future for the industry.
The growth of Web3 gaming has exhibited a remarkable surge, experiencing an astounding 2,000% increase from 2021 to 2022. This remarkable growth has not only captured the attention of avid gamers but has also attracted a multitude of highly skilled developers, surpassing any previous records in the gaming industry.
In 2022, Web3 gaming demonstrated resilience and established itself as a significant participant in the realm of blockchain. While other sectors in Web3 experienced a slowdown, the gaming space continued its global expansion. This period witnessed continued investment in Web3 gaming, even amid what some might consider a “crypto winter.”
Gaming activity accounted for almost half of all blockchain activity across 50 networks, with 800,875 daily unique active wallets (UAW). However, this number is still relatively low compared to the billions of gamers worldwide, indicating untapped potential. It’s important to note that wallet activity alone should not be considered a measure of progress for Web3 games.
Currently, most projects have centralized and private active user data, which falls short when compared to traditional Web2 games. Additionally, wallet activity in 2022 may include individuals leaving the industry and cashing out, so caution is advised when using it as a metric for assessing progress. Thus, it is reasonable to state that the Web3 gaming industry has not been completely abandoned.