April 2024 Web3 Gaming Update: Record Active Users Amidst Market Downturns
May 2024, [email protected]
Data Source: GameFi Research Page on Footprint Analytics
In April 2024, the Web3 gaming sector experienced a noticeable shift after a record-breaking March. Bitcoin saw a drawdown from its all-time high, closing the month down 10.4%. At the same time, the market cap of blockchain game tokens fell by 30.5%. In contrast, daily active users (wallets) rose to an all-time high of 3.0 million, highlighting increased engagement amidst broader market challenges.
Data for this report was obtained from Footprint’s GameFi Research page. This easy-to-use dashboard, updated in real-time, contains the most vital stats and metrics to understand the Web3 Game industry.
Monthly Market Review
In April 2024, Bitcoin, after reaching a new all-time high of $73,068 in March, experienced a drawdown, dropping from $71,229 on April 1st to $63,839 on April 30th, a decrease of 10.4%. Similarly, Ether, starting the month at $3,643, saw a decline, closing at $3,215 on April 30th, a decrease of 11.7%.
Overall, industry trends remained positive in April. The Bitcoin Halving on April 20th reduced the network’s issuance rate, while U.S. senators proposed a bipartisan bill for stablecoin regulation, signaling potential clarity in the regulatory landscape. Also during the month, former Binance CEO Changpeng Zhao was sentenced to four months in federal prison for anti-money laundering violations, signaling clearer legislation in the centralized exchange sector.
Despite recent quarterly gains, Bitcoin’s price fell in April. Ether also lagged behind Bitcoin, possibly because investors felt uncertain about the chances of an ETF approval for Ether in the U.S. market.
This reflected a broader downturn in market sentiment. Public statements from US Federal Reserve officials suggested diminished prospects for interest rate cuts, aligning with strong economic indicators such as payroll employment and CPI. Furthermore, Uniswap Labs and Consensys received Wells Notices from the SEC, highlighting impending regulatory challenges for decentralized finance projects.
Overall Web3 Game Market
In April, the market cap of blockchain game tokens declined to $16.6 billion, marking a 30.5% drop. This downturn was largely influenced by broader trends in the crypto market and the performance of Bitcoin.
The average daily transactions for blockchain games totaled 8.6 million, a 16.7% decrease from March and significantly below the peak of approximately 25 million seen in Q3 2022.
In contrast, the average daily active users (wallets/gamers) in April reached 3.0 million, representing a 16.9% increase from March and setting a new all-time high.
Web3 Game Chains
In April, 1,572 games were active across various blockchains, with BNB Chain, Polygon, and Wax leading with market shares of 25.8%, 19.5%, and 15.6% respectively.
In April, among the 3.0 million average daily active users (wallets/gamers), Ronin, Polygon, and Near led the sector. Ronin maintained its lead, increasing its share from 25.9% to 29.2%. Near saw its share grow from 6.4% to 11.3%, and Klaytn’s share rose from 2.9% to 6.2%.
Conversely, BNB Chain’s share fell from 9.1% to 7.4%. Additionally, Linea’s share plummeted from 7.8% to 0.15% following the closure of its Web3 gaming event, “Linea Park.”
Building on the momentum from the Arbitrum and Starknet Foundations’ efforts last month to support the Web3 gaming ecosystem, more chains have joined the initiative. Immutable announced the launch of a $50 million Web3 gaming rewards program and revealed that its ecosystem is currently developing over 270 titles, including high-profile projects like Illuvium and MetalCore.
Web3 Games Overview
In April, the total number of games reached 3,118, with 1,319 being active. Of these, 261 games, representing 8.4%, attracted more than 1,000 monthly users.
The stability of these figures has persisted for some time, and there is anticipation for an increase in popular Web3 games. However, developing high-quality games is a time-intensive process for studios. Additionally, a significant challenge lies in bridging the gap between partially on-chain and fully on-chain games. Creating the ideal fully on-chain game requires a seamless integration of on-chain elements with the rich user experience typical of legacy titles.
Despite challenges, several games performed well in April.
Several trending games experienced significant user growth on their respective platforms: Pixels acquired 1.1 million new users on Ronin, Matr1x Fire attracted 598.2K on Polygon, and Lifeform garnered 112.5K on BNB Chain.
Besides, Another World, built on Klaytn, emerged as one of the most trending games. It attracted an average daily active user count of 130.8K throughout April, soaring from 2.1K on April 1st to 172.9K by April 30th, a significant increase from previous figures below 50 daily users. This surge in popularity helped drive Klaytn’s share of daily active users from 2.9% to 6.2% over the month.
Game Investment and Funding
In April, the Web3 gaming sector saw a total investment of $78.7 million across 17 funding events, marking a notable 47.9% decrease from the funding amount recorded in March.
Animoca Brands demonstrated notable activity in April, investing in five Web3 gaming projects. These investments included Anichess, Puffverse, Gomble Games, Iskra, and Planet Mojo.
In April, the Web3 gaming platform Gomble Games secured $10 million in funding from prominent crypto and gaming investors, including Spartan, Animoca Brands, Binance Labs, and IOSG Ventures.
Similarly, the NFT game Puffverse secured $3 million in funding from investors such as Animoca Brands, Spartan, and Sky Mavis. Notably, Puffverse announced plans for a comprehensive migration of its main products and assets to the Ronin Network in May.
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