In January 2023, Web3 crypto gaming project tokens had triple-digit growth on average. This provides assurance and assistance for some new and possibly undervalued projects in the field.
Web3 and its unique blockchain applications have created new prospects for game developers, gamers, and investors. Web3 gaming tokens enable game creators to build one-of-a-kind goods within their games that players may own, sell, and accumulate as non-fungible tokens (NFTs).
Developers are using these tokens to open up new opportunities for community involvement and revenue in the gaming world, as gamers may now possess physical assets with worth beyond the game itself. Web3 gaming tokens can potentially help investors by allowing them to buy and sell NFTs like traditional stocks or commodities. The scarcity of NFTs, as well as the uniqueness of each token, might drive demand, raising the NFTs’ value.
Crypto gaming tokens are more secure than regular payment systems, which is one of their key advantages. The blockchain processes transactions, making them visible and tamper-proof. This also removes the need for players to share sensitive information with third-party platforms, thereby boosting privacy and security.
One of these assets’ key purposes is to facilitate smooth cross-platform transactions. Many players desire to be able to transfer uncommon and valuable virtual assets between games and platforms. This would enable a thriving virtual economy in which gamers could trade products for real-world currency.
Crypto gaming tokens can potentially give game producers with a new source of revenue. Players can buy virtual assets with crypto tokens, presenting game developers with a new revenue stream. This can also reduce the necessity for in-game adverts, making the gaming experience more pleasurable for players.
Among the leading names in the cohort are:
This also provides opportunity for smaller indie game producers that may require assistance in competing with larger game corporations.
Delphi Digital, a bitcoin analytics company, recently published a report that put further light on this paradigm.
The 2023 crypto gaming research focuses on numerous significant business trends. According to the report, one of the greatest drivers of the crypto gaming sector has been the emergence of non-fungible tokens (NFTs).
Keeping this in mind, the most valuable gaming tokens have seen an average price increase of more than 100% in January alone. Notably, the average price gains of the top ten gaming tokens by market capitalization in January totaled 102%.
“By January 25th, all of the top 10 gaming tokens by market cap had climbed in price by 50% or more, with some witnessing as much as 200% growth from the beginning of the month,” according to the report.
Apecoin (APE), Axie Infinity (AXS), Sandbox (SAND), and Gala (GALA) are among the few cryptocurrencies that experienced large price rises in the previous month. This is clear from the graph above. Enjin (ENJ), ImmutableX (IMX), Magic (MAGIC), Wax, and the Move-to-Earn (M2E) platform Stepn are among the other coins.
Several bullish statements propelled GALA ahead of the rest of the group. Meanwhile, SAND saw a 30% increase after signing an agreement with the Saudi Arabia Digital Government Authority (DGA).
Some popular gaming projects built on their January successes, with the majority posting considerably better results during the first week of February. Their average price has climbed by more than 110%.
Wemix is one of these. WEMIX, the project’s token, experienced a 300% gain in a month when digital asset markets rebounded from their 2022 lows.
According to its website, the platform offers blockchain-based games for over 378,000 gamers and now contains at least 20 titles. Each has tokens on the WEMIX blockchain, and the site just launched a fan token system to help the community.
Furthermore, the Ethereum-based game project ImmutableX (IMX) increased by approximately 150% over the previous month. The ongoing adoption of blockchain technology for web3 applications has resulted in a price explosion for the project. Meanwhile, innovations like the ‘Immutable Passport,’ a non-custodial wallet, expanded the ecosystem’s usefulness. The [negative view] of web3 gaming is rapidly changing. For starters, blockchain gaming already accounts for almost 48% of total blockchain activity, and blockchain gaming wallets are expanding at a rate of 8% each month. Clearly, new players are entering this market.
He also addressed the issue of funding. ‘Investors are growing in interest as well, and it appears that the tumultuous events of 2022 haven’t halted that,’ Connolly said. Web3 games raised nearly $534 million in October and November alone.’
‘Perhaps some VCs are sitting on the sidelines, but the vast majority are paying attention,’ he concluded.
Overall, the rising adoption of blockchain technology by mainstream gaming companies is creating a buzz. EA, Activision Blizzard, and Rockstar Games are all investigating the usage of blockchain for gaming assets, in-game economy, and player verification.
This tendency may continue as more organizations realize the benefits of blockchain technology in the gaming industry. With the rise of DeFi games, the increased usage of blockchain technology, and the importance of partnerships and collaborations, the gaming industry is well-positioned to promote innovation and growth.
It is still too early to proclaim winners in this area, especially given its infancy. Some issues, like as user experience and concerns about industry regulation, require addressing. This is especially apparent when the web3 cohort is compared to the web2 gaming titans.