Blockchain gaming numbers were affected by the wider bear market leading many observers to criticize the existing models and the utility of most projects.
The total sector recorded a total investment of $600 million in Q3 2023, raising total investor figures this year to $2.3 billion, crypto analytics firm DappRadar wrote.
The figures posted in the last three months show the market retracted by 38% in terms of investments from $873 million in Q2 2023. This year’s total inflows have hit 30% of last year showing a poor run.
Despite the reduced flow of institutional investors, the industry notched an average of 786,766 daily active wallets, marking a 12% growth for the previous quarter.
Decentralized virtual world applications also hit high trading volumes with 28,000 land sales tapping $12 million.
The industry has been hit with recent turmoil as a result of declining figures leading to layoffs, slow market adoption, and reduced investments.
However, traditional players continue to suggest a gradual flow back to the market with recent developments around many projects, especially on gaming-centric investment companies.
Web3 games analysis
Alien Worlds remained the most played blockchain game in the last quarter, a figure gathered by mirroring wallet activities of top platforms across several networks.
Axie Infinity led in terms of gaming transaction volume as sales hit $90 million and was followed by Gods Unchained at $55 million; both games have used community engagement tools as well as rewards to spur development.
Jeffrey Zirlin, the co-founder of Sky Mavis, the team behind Axie Infinity noted that the blockchain gaming space is still competitive with lots of titles yet to be released and praised Axie’s development so far.
He added that Sky Mavis rewards players with $472,000 worth of AXS tokens every season for six weeks including tournaments and other community-inspired initiatives.
Positivity amid the bear market
On the bear market, he sees potential for the Industry to know the shortcomings and ways to improve its operations, especially user interaction as the driving force.
“Bear market hard times—that’s needed for evolution. You cannot evolve when you’re going through a great boom. You will change in other ways, but in terms of figuring out the next thing that’s what these times are for.”
Zirlin’s view was also reechoed in the report in carving a forward path for the sector amidst plunging figures.
“while the growth trajectory of blockchain gaming remains largely positive, the evolving dynamics across sectors and platforms emphasize the need for adaptability and foresight in this ever-evolving domain,” the report states.
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