Key Takeaways:
- Web3 gaming sector saw explosive growth over the past year, according to an Arcane Research Report.
- Blockchain games remain an attractive option for investors post the LUNA-pocalypse.
NEW DELHI (CoinChapter.com) — The Web3 gaming industry is likely to emerge as one of the most exciting elements of the cryptocurrency ecosystem, as per a report from crypto analysis firm Arcane Research.
Web3 rocking the globe
Web3 has been enjoying consecutive waves of adoption over the past 20 months. The first wave rode on the idea of DAO governance, while the second Web3 adoption wave resulted from 2021’s NFT craze. In addition, new investors hopped on the bandwagon due to an ecosystem of NFT marketplaces.
NFTs have helped gamers turn a hobby into an income source. Unlike Web 2.0 games, where value generation was in the hands of game developers and publishers, blockchain games deliver monetary benefits directly to gamers.
P2E games help players monetize in-game assets by making them into NFTs, which gamers can then sell at their discretion on the in-game marketplace or outside the game.
Also Read: The health of metaverse tokens amid crypto market decline.
Web3 gaming activity has grown by roughly 2,000% over the past year. In addition, the COVID-19 induced lockdown further helped the sector’s growth in 2020, which continued in 2021. Furthermore, Q1-2022 saw blockchain games raise nearly $2.5 billion in venture funding.
Furthermore, new Web3 gaming projects have cropped up across multiple genres, from RPGs to racing. As a result, gamers across genres have hopped on to the play to earn bandwagon. However, interest seems to be speculative instead of enjoyment.
In addition, the Arcane report forecasts that blockchain gaming, combined with NFTs, creates possibilities for “entirely new business models and gamer earning opportunities.”
Optimistic despite market crash
The Web3 gaming sector remains a promising option for investors, especially due to the recent market crash that dragged Bitcoin (BTC) prices to $29,000. Though tokens related to P2E games fell, blockchain gaming’s growing userbase might help the sector survive market volatility.
Furthermore, people have turned to blockchain gaming as an alternative means of income in emerging markets. As a result, games like Crabada and STEPN are growing amazingly.
Though still in infancy, NFT games generated more than $2.3 billion in revenue in Q3, 2021, as per a Blockchain Game Alliance report. The amount accounts for roughly 22% of all NFT trading volume across the industry in the quarter.
Also Read: Top five sports NFT drops and collectibles.
The report also highlighted that nearly 81% of respondents in a survey stated they had been a part of the Web3-based blockchain gaming sector for less than three years.
Web3 is not limited to just NFTs and gaming. Web3 might help businesses switch to a crypto payment system or open a storefront in the metaverse. Brands like Chanel and Gucci are already dabbling in it.
However, Jeff John Roberts, a technology journalist, and the author believes Web3.0 needs to improve its user interface to increase adoption further and make it accessible to mainstream users.
