2023 GameFi Industry Insights By CoinGecko

CoinGecko's 2023 GameFi report highlights shifts in blockchain gaming, with a focus on active games and blockchain usage.

What are the latest trends in blockchain gaming?

CoinGecko has published a new report on the current state of blockchain gaming.

The research starts by recounting the early phase of blockchain gaming, marked by CryptoKitties' launch in 2017. This game's success led to the ERC-721 NFT standard and the development of the Flow blockchain. The report also examines the first wave of GameFi in 2021, highlighting Play-to-Earn (P2E) and Move-to-Earn (M2E) trends with games like Axie Infinity and StepN. Despite their initial popularity, many such games faltered due to simple gameplay and unsustainable tokenomics. The data shows a 57.9% drop in active addresses from the GameFi peak in November 2021, down to 837k.

Current GameFi Landscape

CoinGecko's analysis reveals the top three most active Web3 games of 2023 up to end-November: Alien Worlds (197.8k), Farmers World (101.3k), and Splinterlands (75.2k) in terms of daily active addresses. However, these figures represent a decline over the year. Sweat Economy's rise to 116k daily active addresses in November, from just 22k in January, is a notable trend. Newly launched games like Pixels on Ronin and BLCR on Polygon also showed strong growth, reaching 74k and 63k daily active addresses, respectively.

Chart showing the most active blockchain games by number of daily active addresses
Most active blockchain games by number of daily active addresses Jan-Nov 2023 (Source: CoinGecko)

Farming/mining games emerged as the leading genre, attracting 253k daily active addresses, followed by card games (178k) and M2E games (166k). In contrast, the Metaverse genre only attracted 44k active addresses. The report also identifies SKALE Network as the most active blockchain for gaming, with over 230k daily active addresses. Other blockchains like Ronin and ImmutableX also saw significant GameFi activity, with Ronin becoming the third most active gaming network, largely due to the migration of Pixels from Polygon.

Graph showing the most active gaming chains
Most active gaming chains by daily active GameFi addresses Nov 30,2023 (Source: CoinGecko)

CoinGecko's report further highlights that while gaming-specific blockchains like ImmutableX, Wax, and Ronin command a larger share of active GameFi addresses, generalized networks such as Solana and Polygon have a lower share, focusing more on trading and DeFi activities. For instance, ImmutableX and Wax see 88% and 91% of their transactions from GameFi, respectively, compared to only 27% on Flow.

This detailed report from CoinGecko showcases the dynamic nature of the GameFi sector, highlighting both its growth and the challenges it faces.

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