Blockchain Gaming Stands Firm As Crypto Market Staggers

Investments in blockchain initiatives have been patchy, but GameFi is one industry that is sustaining development despite the market’s decline.

The blockchain gaming industry has quietly weathered the storm better than other market segments, despite the fact that the majority of investors are focused on the most recent scandals involving centralized finance (CeFi) and decentralized finances (DeFi)

Blockchain Gaming Triumphs

The blockchain gaming sector has grown by 2,000% since the first quarter of 2021, according to a recent data by DappRader and BGA Games, and it now accounts for more than half of all blockchain activity.

The growth of the play-to-earn paradigm made possible by non-fungible tokens (NFTs) on well-known blockchains like Ethereum is a significant factor in the recent popularity of blockchain gaming. Players amass in-game NFTs in many of these games, which they can exchange for cryptocurrencies and fiat money. Nowadays, it’s not unusual to see people of all stripes in the Philippines boosting their income by participating in these play-to-earn games.

Total number of unique active wallets interacting with smart contracts. Source: DappRadar

All industry sectors, as depicted in the chart, have seen a discernible reduction in active users, but the gaming sector has demonstrated to be the most tenacious at keeping consumers as the bear market got worse.

BTC/USD trades below $20k. Source: TradingView

While the blockchain gaming sector fell by only 5%, the entire industry decreased by 26%. The report noted:

“This is a bullish indicator for blockchain games as many have speculated that game dapps would lose most of their player base if they stop being financially profitable to the average user. It was proven not to be the case. “

Related reading | GameStop Launches NFT Marketplace

The blockchain game with the most players is Splinterlands. Over 350,000 individuals had been actively using it every day for the past eight months, with just a modest 4 percent decline.

Top 10 Blockchain-based Games of Q2 2022. Source: DappRadar

The top five blockchain-based games were Splinterlands, Alien Worlds, Farmers World, Upland, and Axie Infinity.

A recent study revealed that Axie Infinity was the most searched NFT community in 122 countries, despite coming in fourth.

Transactions Surged

The volume of transactions taking place in the main market sectors provides more evidence of gamers’ ongoing involvement.

With a current count of 173.17 million, gaming-related transactions outnumber all other market segments by a wide margin; decentralized finance comes in second with 8.86 million.

Total number of transactions sent to smart contracts. Source: DappRadar

The most active protocols in terms of transaction count are WAX, Hive, BNB Smart Chain (BSC), Solana (SOL), and Ronin. WAX is now leading the pack with 158.23 million transactions.

Related reading | Game Over: Ethereum GameFi Activity Collapses By 96%

Featured image from Getty images, chart from DappRadar and TradingView.com