DappRadar’s Q2 2022 industry report found blockchain games, their NFTs and gaming crypto coins were ‘least affected by the bear market’.
Bitcoin, Ethereum and most altcoins have been in a downtrend since the all time highs set in November 2021, capping a year of Fed money printing, quantitative easing, stimulus checks and increased interest in investing during pandemic lockdowns.
Blockchain Gaming Outperforms Bear Market
According to DappRadar however blockchain gaming platforms and their in-game related NFTs (non-fungible tokens to represent player characters, avatars, weapons, etc.) have ‘not been impacted as drastically’ – putting in a strong performance until around June 2022, with a slight ‘slowdown’ in July.
They have still been impacted – it doesn’t require any technical analysis to conclude that from the price charts year to date of crypto gaming projects like:
- Axie Infinity (AXS)
- Decentraland (MANA)
- DeFi Kingdoms (JEWEL)
- Gods Unchained (GODS)
- Lucky Block (LBLOCK)
- My Neighbor Alice (ALICE)
- Smooth Love Potion (SLP)
- The Sandbox (SAND)
However alongside ‘DeFi summer’ there was also a massive run-up for metaverse and gaming cryptos during their 2021 bull run – especially around the time of Facebook changing their name to Meta in Q4 2021. AXS led the market and exploded with a 166,000% bull cycle. A correction was to be expected.
Several blockchain gaming projects also had specific setbacks like hackings and exploits that affected their token price and market cap – such as AXS and JEWEL. The DappRadar reports makes a note that the Axie Infinity play to earn crypto game lost 40% of its player base since Q1 after the Ronin hack and SLP token depreciating in value. The game is attempting to ‘change the narrative’ now with their Axie: Origins upgrade.
What DappRadar found though is that on average crypto games projects ‘weathered the storm quite well’. Part of their report states that blockchain gaming activity ‘makes up 52% of all unique active wallets (UAW), with nearly 1.1 million UAWs in Q2’.
High Investor Interest
In terms of VC investor backing, DappRadar wrote:
‘Investors interpreted [crypto gamers’] resilience as a bullish signal to keep investing in blockchain games. VC investments remain strong, with $2.5 billion was invested in Q2, maintaining the pace set in Q1. VC investments have already surpassed the annual milestone of $4 billion set in 2021.
At this pace, we are projected to have a volume of $12 billion invested by the end of the year. Total 2022 investment is already outpacing the 2021 total by 33%.’
We also reported on Sony investing $1 billion in Epic Games – the leading US online games producer behind Fortnite – to build a metaverse project.
New Blockchain Games
New blockchain gaming projects also continue to be developed, with new optimistic crypto presales launching continually.
One of the latest and most unique is Battle Infinity which aims according to the battleinfinity.io website to create an entire ‘multiverse of metaverse gaming’ – with a diverse range of battle royale type games across different arenas. One of which will take on a daily fantasy sports theme – allowing players to craft and train a sports team and compete with other teams around the world.
With the strength and resilience blockchain gaming showed in 2022 so far despite the adverse macroeconomic conditions, and how popular games are in general in modern times, it could be a good investment bet for 2023 and years to come.
We also wrote a list of gaming companies to invest in, some of which were blockchain gaming companies.
Battle Infinity - New Metaverse Game
- Listed on PancakeSwap and LBank - battleinfinity.io
- Fantasy Sports Themed Games
- Play to Earn Utility - IBAT Rewards Token
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