GameFi or Game Finance stands out as one of the largest sectors in the crypto industry, driven by the enthusiasm of players witnessing the integration of web3 technology into the gaming sector. The gaming industry itself is massive, with a global revenue exceeding approximately $395 billion in 2023.
Let's delve deeper into the current conditions of the web3 gaming industry and whether it can reinvigorate the GameFi narrative in the upcoming Bull market.
Current State of the Web 3 Gaming Industry
Examining the data, it's evident that the potential of the web3 gaming industry remains substantial. As of now, the revenue from web3 gaming is estimated at around $3 billion, constituting 1% of the total gaming industry in 2023, according to App Radar. Despite being in a Bear market, the gaming industry refuses to decline. The number of games in the web3 industry has increased by approximately 290% compared to January 2021, supporting the narrative that even during a Bear market, new developers continue to create games. Moreover, not only the number of games but also the player count is consistently rising.
Footprint analysis data reveals that the player count in 2023 remains stable at around 1 million players across the entire web3 industry. This signifies a significant growth from its lowest point, approximately 785,000 players. While still relatively low compared to the Bull market, token transactions in the web3 gaming world continue to increase. These transactions are a crucial part of web3 gaming, allowing players to have full control over monetization within the game. For instance, in Alien Worlds, a web3 game, the largest transaction in November 2023 occurred within a card-based game where players can directly buy or sell cards with minimal platform fees. Importantly, all transactions are stored in the player's private wallet, preventing game developers from manipulating or misusing the acquired cards, unlike in traditional web2 games where sudden updates can alter player possessions.
Despite the necessity for players to invest in game assets, which might pose challenges for those with limited capital, there is a positive development in the gaming industry through DAOs and Guilds. These entities continue to support players, enabling them to start playing without a significant initial investment.
What are the functions and differences between DAO gaming and GUILD gaming?
"Navigating the Web 3 Gaming Seas: A Glimpse into Potential Revival and Inclusive Play in GameFi During the Next Bull Market."
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