Recently, there have been frequent positive developments in the chain game industry, with multiple related projects receiving large amounts of financing. In addition, Google, the world’s largest browser, announced that it will allow NFT game advertising from September 15th, which means more Web2 network users will be exposed to Web3 games at that time.
A report jointly released by DappRadar and Blockchain Game Alliance earlier last month showed that the financing amount for Web3 games surged to $297 million in July this year, a year-on-year increase of 336.76%, with 63% of the funds flowing into infrastructure.
Since reaching its peak in November 2021, the online gaming sector has remained silent to this day, but it is still favored by insiders. One of the top ten encryption areas that Coinbase co founder and CEO Brian Armstrong is most interested in is online gaming.
So do the above signs mean that the GameFi field has gradually emerged from the ice age and ushered in a thaw? What are the several chain game projects that have been favored by capital recently? Will this be the optimal layout window period for ordinary investors?
Unexpected data performance
Although the chain game circuit in the entire 2022 crypto market is almost completely silent, there are still related projects that have achieved impressive performance in the face of the trend.
Taking the Web3 gaming platform Iskra as an example, it first received $34 million in financing in April last year, and then continued to receive $40 million in funding support in September of that year. And Iskra’s performance is also commendable. According to VentureCap Insights data, Iskra’s revenue in 2022 reached $8 million, with a profit of approximately $900000.
It can be seen that there are still resilient potential players in the chain game track. The increase in the total financing amount of this track since the beginning of this year further confirms the market’s optimistic outlook for Web3 games. So, under the injection of liquidity, how has the overall performance of the GameFi field been in the near future?
Firstly, from the overall number of chain games, according to Footprint Analytics data, it has shown a stable growth trend in the past three years. From 2021 to present, the growth rate is approximately 300%. As of now, the total number of chain games is approximately 2558. In terms of public chain distribution, it is mostly concentrated in networks such as Ethereum, BNB Chain, Polygon, Wax, etc.
However, the increase in the number of games has not resulted in a significant increase in user numbers and transaction volume. Part of the reason is that the stable and active number of chain games has remained around 500-600 in the past three years. This means that the chain game circuit lacks innovation, and the level of game production has not been universally improved, resulting in a lack of game appeal.
Therefore, although the number of online games continues to grow, the number of active users has not significantly increased, especially since the crypto market crash in June last year caused a significant decrease in user numbers, which has been in a stable trend. The recent multiple positive news in the market has not led to an increase in user numbers, but rather a decrease.
In terms of trading volume and number of trading addresses, the overall trend of chain games is also similar to the above types of data, showing a downward trend. And it has been particularly evident since September of this year, indicating that the current situation in the GameFi field has not shown signs of stabilization, but rather shows signs of decline.
From the performance of the game sector on the exchange, it can be seen that except for YGG’s significant increase in early August due to the speculation of DWF Labs, other related concept currencies such as AXS, MBOX, ILV, ALICE, etc. have not significantly increased or pulled up, and instead gradually have a trend of hitting new historical lows.
Chain game new forces
From the financing trends of the chain game track, the views of industry leaders, and Iskra’s revenue performance, although GameFi is still in an extreme ice age, it is still a blue ocean worth investors’ attention and layout. Especially the emergence of new narratives in full chain games has given Web3 game developers and enthusiasts direction and confidence.
The recent performance of chain game track data has been particularly bleak, and projects that can still receive a large amount of funding support at this time are undoubtedly more worth looking forward to. Below, Golden Finance will take a look at the origins of the chain game related projects that have recently received large amounts of financing.
On September 7th, BulletChain, a Web3 battle oriented game, announced the completion of a $2 million private equity round of financing. The specific investor was not disclosed, and the new funds will be used to expand operations. At present, the game has started beta testing from September 11th to 18th, and players can apply for internal testing through the application form.
This game is a mobile third person shooter game that allows players to freely play, play, and make money. Players can participate in large-scale team battles of 50V50 and 25V25 on a large map, and can drive various vehicles on land, sea, or in the air.
GamePhilos is a Web3 game studio that, according to media reports on September 3rd, has raised $8 million in seed rounds, which will be used for a free mobile/PC strategy game called Age of Dino.
In terms of investment background, Xterio Ltd, Animoca Ventures, SevenX Ventures, and Chain Hill Capital led the investment, while Hashkey Capital, Sanctor Capital, Game7, Bas1s, GSR, and GSG Ventures joined the investment. In addition, the founders of the studio include former members of NetEase, Zynga, FunPlus and ByteDance.
On September 3rd, the P2E game Galactic War announced a $6 million funding from KaJ Labs, and in June of this year, the KaJ Labs Foundation launched a $1 billion Web3 and AI funding program to support blockchain developers.
Galactic War is an AAA level game with excellent graphics design and multiple gameplay options. This game can be operated through virtual reality simulation activities, and players can experience the joy of making money in the game.
On August 3rd, according to official news, the Web3 mahjong game Mahjong Meta announced the completion of a $12 million financing, led by Dragonfly Capital and Folius Ventures, with Meteorite Labs, Find Satoshi Labs, Parallel Ventures, and Emoote participating.
Mahjong Meta is a Web3 gaming platform dedicated to mahjong esports, with a core team composed of personnel from gaming companies such as Tencent, NetEase, and Lilith. Mahjong Meta launched beta testing in early May this year, and the official version was released in August.
Although the performance of online gaming is not satisfactory from the perspective of data on the chain, it still has advantages over tracks such as DeFi and NFT. And recently, institutions such as a16z and Animoca Brand have also been betting on chain games, and there are also many chain game project owners on blockchain week in South Korea/Singapore.
Especially under the current trend of AI outbreak, Game has gained richer content support. Even though GameFi is still in a cold winter period, at least in terms of expectations, investors are more willing to believe that the spring of chain games will come.