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In September, the price of Bitcoin fluctuated within a narrow range, rising slightly by 3.7%. The Web3 game industry is growing, but less than 10% of games have more than 1,000 monthly active users. The distribution of games on different public chains is relatively stable, with BNB leading the way with a share of 30.9%.
With the expansion of the Web3 game market and the entry of giants, the challenges faced by user acquisition and retention remain severe. The industry needs to address these issues to ensure sustainable growth and mass adoption.
In addition, the release and operation of games on different public chains has enhanced the need for interoperability, and the emergence of potential new public chains, which may subvert the dominance of the currently leading public chains. The future of Web3 gaming presents both opportunities and challenges, and we will wait and see how the industry evolves to meet the needs of players and investors.
The data for this report comes from Footprint Analytics' Web3 Games research page. This is an easy-to-use dashboard containing the most important statistics and metrics for understanding the Web3 gaming industry, updated in real time. You can click here for the latest information on pricing, projects, financing and more.
Key points overview
Crypto Market Overview
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In September, the price of Bitcoin fluctuated slightly, fluctuating between a low of $25,158 and a high of $27,210 during the month.
Web3 game market overview
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The Web3 game industry continues to grow. There are currently 2,607 games, an increase of 2.6% from August and a significant increase of 15.0% from April.
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Major players in the gaming industry are increasingly getting involved in Web3 gaming.
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User acquisition, retention, and survival during market downturns are all important issues.
Web3 game public chain data
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On Polygon, 39 games have attracted more than 1,000 active users, accounting for 8.6% of the total games on its chain, compared with 5.3% for BNB and 1.5% for Ethereum.
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On September 28, Sui announced the launch of the Web3 game portal Play Beyond, which has launched 18 different types of games.
Web3 Game Project Overview
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In September, the token prices of a total of 13 gaming projects surged significantly, with an increase of more than 20%.
Web3 game investment and financing situation
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The popularity of investment and financing in Web3 Game Bank is stable, with a total of eight rounds of financing this month, attracting considerable investment.
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Well-known investment institutions such as a16z have shown signs of engaging in a “dip hunting” strategy.
Market trends this month
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zkSync Era is about to launch the latest work of the well-known chain game project Honor World - "Dream Island".
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Sui launches Web3 game portal Play Beyond.
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Binance NFT will stop The Sandbox NFT staking program on September 26 and will no longer support the Polygon network.
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Crypto gaming company Proof of Play completed a $33 million seed round of financing, with a16z and Greenoaks co-leading the investment.
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Web3 game studio GamePhilos completed a US$8 million seed round of financing, led by Animoca Ventures, Xterio and others.
Crypto Market Overview
In September, the price of Bitcoin fluctuated slightly, fluctuating between a low of $25,158 and a high of $27,210 during the month. The initial price at the beginning of the month was $25,940, and it grew slightly by 3.7% during the month, finally closing at $26,899.
Data source: Market Cap: GameFi Tokens vs BTC
Both Bitcoin value and on-chain activity increased in September compared to the previous month. The increase in on-chain activity may be due to investors getting ready to take positions ahead of the potential regulatory approval of a spot Bitcoin ETF. Spot Bitcoin ETFs made some progress in late August.
Additionally, the trustee of cryptocurrency exchange Mt Gox will defer creditor repayments until October 2024. It currently holds about 138,000 Bitcoins, currently worth $3.7 billion. This decision may reduce market selling pressure expectations and have a positive impact on Bitcoin's performance in September.
Web3 game market overview
The Web3 game industry continues to grow. There are currently 2,607 games, an increase of 2.6% from August and an increase of 15.0% from April. Although the total number of games is on the rise, games with more than 1,000 monthly active users are still relatively rare, accounting for less than 10%. In September, it was 8.7%. These statistics highlight the ongoing challenges Web3 games face in acquiring users.
Data source: Monthly Active Games
Throughout the month, the number of daily active users of Web3 games remained at around 1 million, an increase of approximately 15% compared to August.
Data source: Active Users & Growth Rate DoD
Major players in the gaming industry are increasingly getting involved in Web3 gaming. South Korea is known for its enthusiasm for e-sports and blockchain gaming, with a huge fan base and strong consumer interest in diverse gaming cultures. South Korean listed game publisher Neowiz recently revealed plans to develop games on Avalanche through its Web3 subsidiary Intella X. South Korean entertainment group NHN Corporation announced that it has cooperated with Sui and plans to launch an on-chain game in 2024.
These industry giants are expected to accelerate the mass adoption of blockchain games with their expertise and capabilities in delivering high-quality games and managing in-game economies.
However, user acquisition, retention, and survival during market downturns are important issues for all players in the Web3 gaming industry.
Web3 game public chain data
In September, the distribution of games on various public chains was relatively stable, with BNB leading the way with a distribution rate of 30.9%; Ethereum followed closely, accounting for 24.7%; Polygon accounted for 14.9%. In contrast, the second tier, including Wax, EOS and Avalanche, all account for less than 5.5%, which highlights their gap with the first tier.
Data source: Games Shared by Chain
Since 2022, the distribution of games on different public chains has shown a consistent trend. With the booming development of the Web3 game market, people are looking forward to the emergence of more new public chains to challenge the long-term dominance of the top three public chains.
Data source: Monthly Games by Chain
In September, BNB, Polygon and Ethereum had a total of 228 games with more than 1,000 monthly active users . Among them, BNB has the largest share at 21.0%; followed by Polygon at 17.1%; and Ethereum at 4.8%. On Polygon, 39 games have attracted more than 1,000 active users, accounting for 8.6% of the total games on its chain, compared with 5.3% for BNB and 1.5% for Ethereum.
On September 28, Sui announced the launch of the Web3 game portal Play Beyond, which has launched 18 different types of games. The portal offers users the opportunity to delve deeper into their favorite games, while also providing resources to learn Sui blockchain technology for game development and iteration. The focus of the portal is to provide a seamless gaming experience that does not require users to have knowledge of cryptocurrency. This is in line with the trend in 2023 - emphasizing immersive and enjoyable gaming experiences rather than complex underlying technology.
Web3 Game Project Overview
In September, the token prices of a total of 13 gaming projects surged significantly, with an increase of more than 20%. These continued rates of growth are a testament to the potential of these projects and their ability to attract investor attention and interest in the dynamic GameFi space.
Data source: Game Token Price Changes in September
Nakamoto Games is a game platform built on the Polygon chain, providing various on-chain games in a "play and earn" model. The platform’s native token has attracted much attention among the GameFi project, with its price rising by 80.4% this month alone. The token’s value has surged an impressive 661.0% since the beginning of the year.
Nakamoto Games
Web3 game investment and financing situation
The popularity of investment and financing in Web3 Game Bank is stable, with a total of eight rounds of financing this month, attracting considerable investment. These financings include significant investments in different types of companies and projects, including GAM3S.GG ($2 million), BulletChain ($2 million), BlockGames (undisclosed), GamePhilos ($8 million), Podium (€2 million), Salvo Games ($1.5 million), Fableborne ($7.8 million), and Proof of Play ($33 million).
Fableborne
Well-known investment institutions such as a16z have shown signs of engaging in a “dip hunting” strategy. It is worth noting that from June to August 2023, a16z had relatively little investment activity, with only one investment per month. However, their recent recovery is evident as they made four investments in September, including a high-profile investment in Proof of Play.
Proof of Play, the crypto gaming company led by FarmVille co-creator Amitt Mahajan, has successfully raised $33 million in seed funding. This round of financing was co-led by a16z and Greenoaks. FarmVille is the most popular game in Facebook's history, with over 300 million players. Proof of Play's first game is a social role-playing game called Pirate Nation.
Pirate Nation
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This article was contributed by the Footprint Analytics community.
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