The latest data from DappRadar highlights that blockchain gaming attracted even more users, with a notable 12% surge compared to the previous quarter. This positive trend signifies the growing interest in this innovative gaming space.
Despite its ongoing popularity, Web3 gaming encountered a decline in market share for the fourth consecutive quarter, accounting for only 35% of the dApp market, a significant drop from 51% in the same period last year.
DappRadar clarified that this reduction was not due to any fundamental issues within blockchain gaming but was primarily influenced by the increasing attention towards other sectors like decentralized finance (DeFi) and non-fungible tokens (NFTs).
The report spotlighted some of the top-performing games, including Alien Worlds, Sweat Economy, and Splinterlands, with Alien Worlds recording a substantial average of 527,000 active user wallets. Furthermore, the emergence of “move-to-earn” models, rewarding users for participating in fitness and sports-related activities, is gaining traction within Web3 gaming.
On the investment front, there was a noticeable decline, with Q3 2023 witnessing a 38% drop in investments compared to the previous quarter. The total investments in 2023 amounted to $2.3 billion, accounting for only 30% of the investments made in the previous year.
Despite this downturn, it is essential to consider the overall market conditions, including the ongoing bear market in the crypto sphere. It’s worth noting that the majority of investments (more than 43%) were directed towards investment firms, indicating their confidence in upcoming potential successes in the Web3 gaming sector.
Overall, while facing certain challenges, the Web3 gaming industry continues to evolve, demonstrating its resilience and potential for future growth.
