While the Web3 GameFi sector continued to bleed users in June and see funding rounds slashed, several popular games have kept their token prices and user numbers relatively stable. Additionally, game platform BinaryX reversed its downward trend, creating a rare bear market breakout, while game developer Playful Studios raised a record amount for its battle game Wildcard. 

Despite how things look from the token price charts of former leaders like DeFi Kingdoms and Axie Infinity, these developments show that even though there is a lot of pain for devs and investors in GameFi, the industry is far from collapsed. 

The overall market continues to be very negative. Footprint Analytics data indicates that, last month: 

On the other hand, aside from the gloom, so-called “risky” investments like metaverse land and NFTs have performed relatively well compared to “safe” assets like BTC and ETH. We explored this topic via three hypothetical BTC/ETH, NFT, and metaverse land portfolios and found that the BTC/ETH (by some calculations) dropped harder from ATH than top NFT and metaverse projects. For the latter two “riskier” assets, returns are also significantly higher in a bull market.

Here’s what happened in GameFi in June. 

The number of GameFi games stood at 1,557, up 2.9% MoM. Newly released GameFi projects include MIND Games, Fishing Lands and Fantom Survivor. They currently have very few transactions and users.

Although the market is in extreme fear, it has not stopped new projects from emerging.

Financing was down by $239 million, or 57.7%, from May. In terms of the number of financing rounds, there were more seed rounds than any other type.

Capital mainly flowed to the Web3 and NFTs categories. One Web3 project, Wildcard, received $46 million, making it one of the few dark horses in the bear market. Cryptoys, a digital, collectible NFT toy project, closed a $23 million round led by a16z.

Despite more innovative games and projects beginning to emerge, the macroeconomic environment and volatility of the crypto market pushed the number of active users down from a peak of 3.58 million in January to 1.46 million by the end of June. The number of new users also gradually decreased to 500,000. Compared with May, the number of active users decreased by 26.9%, and the number of new users decreased by 16.1%.

In addition, the overall transaction volume decreased in June compared to May, with a 30.3% decrease from the previous month.

WAX has the most GameFi transactions out of all chains at 87% of the total. This is due to its top 2 game projects, Farmers World and Alien Worlds. Both have maintained a stable number of transactions and users during the bear market.

With the bear market in full swing, formerly lucrative projects like Bomb Crypto, DeFi Kingdoms and StepN have seen their NFTs and tokens devalued to a fraction of their ATHs. BinaryX, originally a trading protocol that transitioned to GameFi and launched a successful title called CyberDragon, looked to be one such project among many.   

BinaryX issued its governance token, BNX, at $20.62 in September. In November, Binance announced that BNX was on the Innovation Board and could be deposited on the platform as a demand money currency, which means that the currency has no pledge period, and holders can directly purchase for any number of days to obtain income, with an APR of 15%. This led BNX to hit an all-time high of $200.71 on November 15, an increase of 873%.

But the good times didn’t last long. The developers of BNX CyberDragon modified the character upgrade function several times to earn more money in-game—upgrades require spending Gold. 

As a result, most players sold their game assets and left the market, resulting in a rapid decline in revenue and difficulty attracting new users. This caused BNX to drop from its ATH of  $200.71 on Nov. 15 to an ATL of $17.71.

To save the project, BinaryX released CyberDragon V2 in March, which added new gameplay and modes. It also included a new minting and upgrading mechanism for heroes, which they hope will add stability to the price. 

On June 14, The Wildcard Alliance, a gaming ecosystem from Playful Studios, announced the closing of a $46 million Series A round.

The funding was for Wildcard, a hybrid multiplayer online battle game. Besides pitting their NFTs against one another, participants can interact and trade directly with in-game fans and holders.

In the current market environment of massive devaluation of virtual assets, Wildcard was still able to get huge financing to support the development of its project.

While the overall market continued to slide with the crypto market in June, individual developments in the GameFi sector have shown that it might be more resilient than many believe. 

June Events Review

NFT & GameFi

Metaverse & Web3

DeFi & Tokens

Network & Infrastructure

Institutions

Worldwide

This piece is contributed by Footprint Analytics community by Vincy.

Data Source: Footprint Analytics – June 2022 GameFi Report

The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.

The post GameFi sector down, but not out | June Report appeared first on CryptoSlate.

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