Footprint Analytics

February 2025 Chains Report: Correction Shakes, Innovation Stands

2025-03-07T06:31:59.024Z

February market correction reveals infrastructure strength amid security concerns, with Bitcoin dominance rising as Layer 2 innovation continues despite pullback.

February 2025 Chains Report

Author: Stella L (stella@footprint.network)

Data Source: Footprint Analytics Chains Research Page

February 2025 brought a sharp market correction across the blockchain space, challenging both veteran networks and newcomers alike. Bitcoin held firm with growing dominance, yet most chains — Solana, Avalanche, and Ethereum included — saw steep declines. Even so, development didn’t slow: Berachain’s mainnet debut, Base’s infrastructure upgrades, and Uniswap’s Layer 2 rollout stood out as highlights. This pullback exposed a divide between platforms with solid foundations and those faltering after early hype.

Market Overview

February delivered a stark correction: Bitcoin dropped 14.8% from $98,768 to $84,177, while Ethereum fell harder, down 27.7% from $3,065 to $2,216. The final week saw intensified selling as security fears rattled nerves.

Source: Footprint Analytics — BTC Price & ETH Price

This followed January’s bullish run but hit a wall with mixed signals. Investors grappled with optimism from regulatory clarity and jitters from a massive security breach. Market sentiment soured as risk appetite waned, especially in speculative corners like memecoins. Globally, North America showed cautious optimism due to policy shifts, while Asia-Pacific markets felt the hack’s ripple effects more acutely.

Regulatory and Policy Updates

The Trump administration’s crypto executive order, spotlighting self-custody and stablecoin growth, offered a rare dose of clarity. Yet, the mood shifted after the February 21 ByBit hack — $1.5 billion lost, the biggest in crypto history — sparked fresh security concerns. Meanwhile, the SEC softened its stance, halting probes into players like Coinbase, Binance, and Uniswap and dropping its “dealer rule” appeal. The bipartisan GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act further bolstered stablecoin frameworks, signaling a friendlier U.S. regulatory horizon.

Investor behavior mirrored this turbulence. The memecoin frenzy, spiked by a token tied to Argentina’s Javier Milei and soured by promotional scandals, saw valuations tank and trading thin out. This shift hinted at a broader retreat from high-risk assets.

Layer 1

Layer 1 chains took a hit, with total market cap sliding 20.8% to $2.3 trillion. Bitcoin’s dominance rose from 71.3% to 74.2%, while Ethereum’s share shrank from 14.0% to 11.9%. BNB Chain edged up to 3.7%, but Solana slipped from 4.0% to 3.3% after a 36.3% price drop.

Litecoin bucked the trend, up 1.0% to $128.7, while Solana (-36.3%), Avalanche (-35.7%), and others lagged.

Source: Footprint Analytics — Chain Token Market Cap and Price

DeFi TVL fell 20.0% to $82.9 billion, with Ethereum at $44.9 billion (down 21.7%) and Solana at $8.6 billion (down 34.1%).

Berachain burst onto the scene, hitting sixth place with $3.2 billion TVL post its February 6 mainnet launch. Distributing 80 million BERA tokens, this “EVM-identical” chain uses a proof-of-liquidity model — think staking with a twist, turning liquidity into network security. After a $100 million raise in 2024, its airdrop and governance perks fueled buzz. Unlike traditional proof-of-stake, this approach could redefine how chains balance growth and stability, making Berachain a name to watch.

Solana’s memecoin wave cooled off. High-profile flops, like Milei’s token, dented confidence, slashing DEX volumes on platforms like Raydium. While memecoins won’t vanish — think digital trading cards — their peak frenzy may be fading, with traders eyeing fundamentals over hype.

Bitcoin Layer 2 & Sidechain

Bitcoin’s L2 and sidechain TVL shrank 24.5% to $2.1 billion from $2.7 billion. Core led with $455.9 million (down 42.0%), followed by Bitlayer ($354.7 million) and BSquared ($319.8 million). BOB shone with just a 7.9% dip to $218.5 million.

Source: Footprint Analytics — Bitcoin Layer 2s & Sidechains TVL

Among mid-tier platforms, Merlin stood out with a modest 9.3% decline to $149.9 million TVL. Smaller players struggled more, with SatoshiVM hit hardest at a 31.5% drop, trailed by MAP Protocol (-29.6%) and Interlay (-27.4%).

Source: Footprint Analytics — Bitcoin Layer 2s & Sidechains TVL

The sector’s slump aligns with Stacks co-founder Muneeb Ali’s take at Consensus 2025: “More than two-thirds of the existing Bitcoin layer-2 projects will cease to exist within three years as their initial excitement fades.” He flagged a tough market ahead, and February’s quiet updates suggest consolidation’s begun. Looking forward, platforms proving real utility may outlast those riding momentum alone.

For more details on Ethereum Layer 2, chains funding events, and other chain developments for February 2025, please visit www.footprint.network or click here for more information.

Data for this report was obtained from Footprint Analytics’ Chains Research Page, an easy-to-use dashboard containing the most vital stats and metrics to understand the public chain industry, updated in real-time.

About Footprint Analytics

Footprint Analytics is a comprehensive blockchain data analytics platform that simplifies complex analysis for businesses and projects in the Web3 ecosystem. It offers tailored solutions that eliminate the need for extensive expertise and infrastructure maintenance. The platform provides long-term growth tools designed to help build and manage communities step by step, emphasizing sustainable growth and user loyalty. By combining powerful analytics with community management tools, Footprint Analytics enables projects to leverage blockchain data effectively for decision-making and growth strategies across various sectors including GameFi, NFT, and DeFi.

January 025 Chains Report: Market Realignment as Bitcoin Dominance

2025-02-17T04:36:02.840Z

January 2025 Chains Report

Author: Stella L (stella@footprint.network)

Data Source: Footprint Analytics Chains Research Page

January saw total market capitalization grow 7.2% to $2.8 trillion, despite mixed performance across major networks. While Bitcoin strengthened its market dominance to 71.3%, emerging platforms showed resilience amid shifting market sentiment influenced by new regulatory developments and technological breakthroughs in AI infrastructure.

Market Overview

Starting at $94,577, Bitcoin closed the month at $102,180, posting an 8.0% gain. Meanwhile, Ethereum showed relative weakness, declining 1.8% from $3,353 to $3,292, leading to its lowest ETH/BTC ratio since September 2024.

Source: BTC Price & ETH Price

Major policy developments significantly influenced the crypto market's trajectory. The Trump administration's executive order on cryptocurrency regulation provided unprecedented clarity for the industry, particularly emphasizing the protection of self-custody rights and support for stablecoin development. However, market sentiment was tempered in the final week as new international trade tariffs raised concerns about global economic growth.

The memecoin sector experienced extraordinary volatility following the launch of $TRUMP and $MELANIA tokens on Solana. This surge in speculative activity notably diverted attention and capital from other crypto sectors, including blockchain gaming.

Technological developments also shaped market dynamics, particularly following DeepSeek's breakthrough in artificial intelligence. This advancement accelerated interest in decentralized AI infrastructure within the crypto ecosystem, with AI-related tokens seeing an increase during the month.

Layer 1

January 2025 saw total blockchain market capitalization climb 7.2% to $2.8 trillion, with Bitcoin strengthening its market dominance to 71.3%. Ethereum's share continued its downward trend to 14.0%, while Solana solidified its position ahead of BNB Chain, capturing 4.0% market share compared to BNB Chain's 3.4%. The remaining chains collectively accounted for 7.4% of the market.

Solana continued its strong performance with a 22.0% increase in market cap to $112.3 billion, cementing its position as the third-largest blockchain by market capitalization.

Among the top 20 chains, Stellar showed notable strength with a significant market cap increase to $12.6 billion, while Litecoin and Monero posted impressive gains of 23.5% and 21.6% respectively. Cardano demonstrated resilience with an 11.9% increase in market cap to $33.2 billion.

Emerging platforms maintained their momentum, with Sui holding steady around $12.4 billion market cap despite increased competition. TON experienced a moderate decline of 14.0% to $12.0 billion market cap, though maintaining its position among the top 10 chains. Hedera showed promising growth with a 14.2% increase to $11.7 billion market cap.

Traditional Layer 1 platforms like Polkadot, Near, and Aptos faced modest pressure, with market caps declining between 3.7% and 7.5%.

Bitcoin Layer 2 & Sidechain

January 2025 saw Bitcoin Layer 2s and sidechains maintain their growth trajectory, with total TVL reaching $2.6 billion, marking a 5.2% increase from December.

Source: Bitcoin Layer 2s & Sidechains TVL

Core maintained its position as market leader with $655.1 million TVL, though experiencing a 9.3% decline from December. Despite this pullback, Core commanded 25.3% of the market share. Bitlayer strengthened its position with a 15.2% increase to $433.6 million TVL (16.8% market share), while BSquared showed impressive momentum with a 19.7% surge to $396.9 million TVL (15.3% market share).

Rootstock and BOB rounded out the top five, with TVLs of $245.7 million and $237.2 million respectively, both showing healthy growth of 10.8% and 8.9%. Notably, AILayer emerged as a significant player, achieving 13.2% growth to reach $226.9 million TVL.

Source: Bitcoin Layer 2s & Sidechains TVL

Among mid-tier platforms, Merlin experienced a modest 3.7% decline to $165.3 million TVL, while Stacks maintained steady growth with a 4.0% increase to $120.8 million. Smaller platforms showed mixed results, with BounceBit achieving 7.3% growth while newer entrants like SatoshiVM and Naka faced declines of 11.6% and 14.9% respectively.

Ethereum Layer 2

January 2025 brought notable shifts in the Ethereum Layer 2 landscape, with total TVL reaching $18.3 billion, marking a 6.7% decrease from December. The ecosystem witnessed significant redistribution of capital as market leaders showed divergent performances.

Source: Ethereum Layer 2 Overview- Rollups (Canonically Bridged)

Arbitrum maintained its leadership position with $6.8 billion TVL despite a substantial 20.4% decline from December. Base continued its impressive trajectory, growing 14.0% to reach $4.6 billion TVL and solidifying its second-place position. Optimism held steady in third place with $3.0 billion TVL, showing minimal change with a 0.5% decrease.

Among the top performers, World Chain demonstrated remarkable growth with a 27.6% increase to $353.8 million TVL, while Paradex surged 50.3% to $37.2 million. ZK Rollups showed resilience, with Starknet and zkSync Era growing by 7.4% and 12.2% respectively, reaching $900.9 million and $611.1 million TVL.

Notable challenges faced some established platforms, with Blast experiencing a 33.8% decline to $400.8 million TVL and Fuel dropping 47.3% to $113.8 million. Linea and Scroll also saw modest decreases of 5.7% and 5.2% respectively.

The ecosystem's competitive dynamics continued to evolve, with optimistic rollups and ZK rollups showing varying levels of success. Newer entrants like Metal joined the landscape, while established platforms focused on consolidating their market positions through enhanced functionality and user experience improvements.

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About Footprint Analytics

January 2025 Web3 Game Report: Sector Declines Amid Broader Market Gains

2025-02-12T07:07:48.045Z

January 2025 Web3 Game Report

Author: Stella L (stella@footprint.network)

Data Source: Footprint Analytics Games Research Page

As broader crypto markets showed strength, the gaming sector faced notable pressure with its market cap declining 19.3% to $22.3 billion. The month was defined by platform consolidation, with TON securing exclusive rights for Telegram’s blockchain infrastructure and LINE launching its Mini Dapps ecosystem through Kaia.

Monthly Market Review

Source: BTC Price & ETH Price

Major policy developments significantly influenced the crypto market’s trajectory. The Trump administration’s executive order on cryptocurrency regulation provided unprecedented clarity for the industry, particularly emphasizing the protection of self-custody rights and support for stablecoin development. However, market sentiment was tempered in the final week as new international trade tariffs raised concerns about global economic growth.

Technological developments also shaped market dynamics, particularly following DeepSeek’s breakthrough in artificial intelligence. This advancement accelerated interest in decentralized AI infrastructure within the crypto ecosystem, with AI-related tokens seeing an increase during the month.

Web3 Game Market

January 2025 saw the Web3 gaming sector face headwinds despite broader crypto market strength. The market cap of blockchain game tokens fell 19.3% from $27.6 billion to $22.3 billion.

Source: Web3 Games & Bitcoin Market Cap

On-chain activity metrics reflected similar weakness, with monthly transactions declining 7.2% to $549.2 million and trading volume dropping 12.4% to $234.8 million.

Source: Web3 Game Daily Transactions

TON Foundation’s January 21 announcement of exclusive blockchain infrastructure rights for Telegram marks a pivotal shift in the ecosystem. This exclusivity agreement, requiring all Telegram-based applications to migrate to TON within 30 days, has created immediate pressure on projects built on alternative chains. The migration deadline of February 21, while offering incentives for early adopters, poses substantial technical and community challenges for affected games.

LINE’s strategic counter-move, launching Mini Dapps and Dapp Portal through LINE NEXT, represents an emerging competitive dynamic in social platform gaming. The initial rollout of 32 Mini Dapps through the Kaia Wave program signals a more controlled, ecosystem-focused approach compared to Telegram’s open development environment.

These platform-level changes, combined with declining market metrics, indicate the Web3 gaming sector is entering a period of consolidation where platform alignment and user experience may take precedence over token economics. The approaches of Telegram and LINE could significantly influence how blockchain games approach user acquisition and retention strategies through 2025.

Web3 Game Chains

January 2025 saw continued evolution in the blockchain gaming landscape, with active games reaching 1,697, a modest 1.4% increase from December. The traditional market leaders maintained their positions in game distribution: BNB Chain (24.2%), Polygon (15.6%), and Ethereum (13.1%). However, this stability in game distribution contrasts sharply with significant shifts in on-chain activity.

Transaction activity showed notable concentration, with three chains dominating the landscape. Wax led with 178.1 million transactions, representing 32.4% of all gaming activity. opBNB followed with 87.2 million transactions (15.9% share), while Aptos recorded 37.5 million transactions (6.8% share). Together, these three chains accounted for over 55% of all gaming transactions in January.

Source: Transactions by Chain

Trading volume revealed a different competitive landscape, with Aptos emerging as the leader at $51.9 million (22.1% share), followed closely by Ronin at $49.5 million (21.1% share). ImmutableX secured the third position with $19.0 million in volume (8.1% share).

Source: Trading Volume by Chain

The competition for developer mindshare intensified in January, with chains launching aggressive incentive programs. Sonic SVM and Galaxy Interactive’s multi-million dollar fund targets the intersection of Web3 gaming and AI, reflecting growing interest in AI-enhanced gaming experiences. Meanwhile, Ronin Network’s $10 million grant program represents a strategic pivot beyond gaming-exclusive focus, expanding into consumer applications and DeFi protocols to create a more comprehensive ecosystem.

Investment and Funding

January 2025 saw Web3 gaming investment activity continue its downward trend, with $31.2 million raised across 6 funding events. The reduced funding activity reflects broader market dynamics. This surge in speculative activity notably diverted attention and capital from other crypto sectors, including blockchain gaming.

Web3 Gaming Funding Events in January 2025 (Source: crypto-fundraising.info）

Pixion Games led the month’s funding activity, securing $4 million in a strategic round led by Delphi Ventures, with participation from Spartan Capital, Sky Mavis, and Animoca Brands. The studio’s flagship title, Fableborne, represents an evolution in mobile Web3 gaming by combining ARPG mechanics with strategic base-building elements. The game’s success on Ronin has attracted particular attention. Other notable game funding events included Drift Zone, BeraTone and Nakamoto Games.

Infrastructure development remained a key focus for investors, with two significant raises: ZKcandy secured $4 million for its gaming-focused Layer 2 chain powered by ZKsync, following successful completion of its open testnet phase. Hyve Labs raised $2.75 million to develop its core infrastructure, such as launching its testnet chain, first game and other on-chain assets.

Data for this report was obtained from Footprint’s Games Research page, a real-time dashboard with comprehensive and trusted Web3 game stats. Please contact us if you notice any chain or game not included and would like it integrated. You can alsosubmit contracts here.

About Footprint Analytics

Web3 Gaming in 2024: Sidelined in the Crypto Boom?

2025-01-10T09:24:50.101Z

In collaboration with CoinMarketCap Research, we analyze how Web3 gaming evolved beyond speculation, examining user growth, market challenges, and key developments shaping 2024.

Web3 gaming painted a complex picture in 2024, facing both significant achievements and notable challenges. While daily active users surged over 300% to reach 6.58 million and traditional gaming companies made concrete moves into the space, the sector underperformed in market performance, increasing its market cap by 60.5% and significantly trailing behind memecoins and AI projects. As Bitcoin approached new highs and various crypto sectors flourished, a crucial question emerged: Has Web3 gaming lost its position as a key driver of crypto adoption?

Yet beneath these surface metrics, 2024 marked a crucial transition year. The industry evolved beyond pure speculation. This report analyzes how Web3 gaming matured through market cycles in 2024, examining the sector’s key metrics, technological advancements, and strategic shifts. From infrastructure development to user engagement patterns, we explore how the industry is building toward sustainable growth while navigating the challenges of mainstream adoption.

Note: Unless otherwise specified, all data in this report reflects market activity through December 15, 2024. Data was sourced fromFootprint Analytics and CoinMarketCap.

I. Key Metrics Snapshot

Market Cap: Reached $31.8 billion, up 60.5% YoY.
Trading Volume: $5.2 billion total, up 18.5% YoY.
Transactions: 5.3 billion total, down 30.3% YoY.
Daily Active Users: 6.6M by year-end, up 308.6% over the year.
Active Games: 1,361 active out of 3,602 total (37.8%).
Annual Funding: $909.4M across 220 funding events.
Chain Leadership:
Trading Volume: BNB Chain (23.1%), Ethereum (17.6%), Blast (9.2%);
Transactions: WAX (33.6%), Aptos (11.6%), Ronin (6.1%);
DAU: opBNB (2.2M), Ronin (1.1M), Nebula (458K) in December.

II. Market Performance Analysis

Market Cap

The Web3 gaming sector showed strong growth in 2024 but underperformed compared to other crypto sectors. According to Footprint Analytics, the market cap of gaming tokens reached $31.8 billion by year-end, representing a 60.5% annual increase. While the sector achieved its yearly peak of $47.4 billion in March, this remained significantly below the previous cycle’s high of $114.1 billion set in November 2021.

Despite the broader crypto market’s strong performance in the latter half of 2024, particularly during the Bitcoin-led rally in the final two months, gaming tokens lagged behind other sectors. CoinMarketCap data shows Web3 gaming ranked 8th among the Top 10 Sectors in market cap growth, significantly trailing behind the leading sectors: Memes (421.1%), AI & Big Data (168.0%), and Solana Ecosystem (124.1%).

This underperformance extended to community interest as well. In CoinMarketCap’s most viewed sectors, Web3 gaming captured just 6.7% of views, ranking 9th among Top 10 sectors, as attention focused primarily on memecoin and AI-related projects throughout the year.

Trading Volume & Transaction Patterns

The Web3 gaming sector showed mixed performance across key metrics in 2024, with significant growth in trading volume but continued decline in transaction counts.

Trading Volume Trend

The total trading volume of Web3 gaming in 2024 reached $5.2 billion, representing an 18.5% increase from 2023’s figure. While this reversed the downward trend since 2021, volume remained significantly below previous cycle highs. The 2024 figure represented only 6.2% of 2021’s peak ($84.1 billion) and 15.1% of 2022’s volume ($34.5 billion).

Transactions Trend

Total transactions in 2024 reached 5.3 billion, marking a 30.3% decrease from the previous year. This level was comparable to 2021’s 5.1 billion transactions, but continued the declining trend that began in 2022.

User Engagement

Daily active users (DAU) grew substantially throughout 2024, from 1.6 million in January to 6.6 million in December, representing a 308.6% increase over the year. This growth surpassed the previous cycle’s peak of 1.8 million DAU in November 2021. While these figures likely include some bot activities, the significant increase still demonstrates a remarkable recovery from the post-2021 decline.

III. Ecosystem Development

A. Chain Competition and Evolution

Leading Chains Performance Analysis

The Web3 gaming landscape saw significant shifts in chain dominance across different metrics in 2024, with distinct leaders emerging in trading volume, transactions, and user engagement.

Trading Volume by Chain

BNB Chain maintained its dominance in trading volume, securing $1.2 billion (23.1% market share), followed by Ethereum with $915.4 million (17.6%). Notably, Blast and Ronin captured significant market share at 9.2% and 9.0% respectively.

Transactions by Chain

Despite the industry’s 30.3% decrease in overall transactions, certain chains demonstrated strong performance. WAX led with 1.8 billion transactions (33.6% of total). Aptos emerged as a significant player with 616.2 million transactions (11.6%), notably driven by its “tap-to-earn” Telegram game Tapos, which generated 540.3 million transactions in August alone. Ronin and opBNB maintained steady transaction volumes with 321.2 million and 317.9 million transactions respectively.

DAU by Chain

User activity showed remarkable growth, particularly in the latter half of 2024. opBNB emerged as the leader in user engagement, reaching 2.2 million average DAU in December and overtaking the long-standing leader Ronin, which maintained 1.1 million average DAU. Nebula, a SKALE Layer 2, established itself as a strong contender with 458K average DAU. The rise of chains like NEAR, Sui, and Sei into the top 10 by DAU demonstrates the ecosystem’s expanding competitive landscape and users’ willingness to engage with newer platforms.

This diversification of chain usage suggests a maturing ecosystem where different chains are finding their niches in supporting various types of gaming experiences and user preferences. Major networks now act as hubs for game developers that go far beyond basic blockchain infrastructure.

The Arbitrum Foundation’s $200 million ARB Gaming Catalyst Program, Starknet Foundation’s 50 million STRK token distribution initiative, and significant grant programs from Sui and Xai demonstrate how chains are competing to attract and retain quality gaming projects through strategic incentives.

Technical Infrastructure Improvements

Growing Capacity

Blockchain capacity is growing significantly, with networks processing more than 50 times as many transactions per second compared to four years ago. This growth is driven by the rise of Ethereum Layer 2 and Layer 3 networks, including Immutable zkEVM, gaming chains running on top of Avalanche, Oasys, SKALE, Arbitrum Orbit, and other high-throughput blockchains including Solana, Sui, and Aptos.

Gaming-focused infrastructure saw major developments. Ronin announced its Layer 2 plan Ronin zkEVM in June 2024, which will enable Ronin builders to create their own zkEVM Layer 2s on Ronin. Immutable zkEVM made a strategic move toward greater accessibility by removing its Deployer Allowlist and enabling Permissionless Deployment. Additionally, Avalanche completed its Avalanche9000 upgrade, addressing the platform’s most significant limitations since its 2020 mainnet launch. This upgrade focused on reducing barriers to building customizable L1s and improving interoperability.

Lowering Gas Fees

A major milestone was Ethereum’s “Dencun” upgrade (also called “Proto-Danksharding” or “EIP-4844”) in March 2024, which significantly reduced fees for L2 networks. The impact was substantial, with gas fees dropping from several dollars to several cents or even less than one cent. This reduction eliminated one of the biggest friction points facing blockchain gaming developers and players.

Increasing Cross-chain Interoperability

Chainlink Cross-Chain Interoperability Protocol (CCIP) gained significant traction in 2024, enabling developers to create games that can interact with assets from multiple chains. This enhancement significantly improved the interoperability of in-game items.

The adoption of standardized formats for digital assets, particularly ERC-721 and ERC-1155, has become more widespread. These standards ensure in-game NFTs can be recognized and utilized across various games and platforms, streamlining asset transfers and interactions.

2024 also saw the notable rise of decentralized platforms supporting cross-chain gaming. Platforms like Portal, Fractal ID, and Web3Games provide the essential infrastructure for seamless asset transfers and interactions between different blockchain ecosystems.

B. Project Development

2024 marked a significant year for Web3 game launches and developments. Beyond traditional gaming companies’ entry, the ecosystem saw several notable releases. Highly anticipated titles like Off The Grid and MapleStory Universe launched in early access, while Illuvium finally released its full version. Proof of Play’s Pirate Nation successfully executed its Token Generation Event (TGE) and play-to-airdrop campaign.

Active Games Analysis

By November 30, 2024, the total number of blockchain games reached 3,602, showing growth from January’s 2,997. However, active game metrics revealed challenging trends. Of the total games, only 1,361 (37.8%) maintained active on-chain users, while 2,241 (62.2%) remained inactive. On top of this, the number of active games decreased from January’s 1,387, despite the growth in total games.

A deeper analysis of user engagement metrics shows further concentration in the market. Games with over 100 monthly active users (MAU) decreased from 586 in June 2022 to 522 by 2024 year-end. In November 2024, 161 games (4.5% of total) achieved over 10,000 MAU, with 96 games (2.7% of total) surpassing 100,000 MAU.

This concentration of users suggests a maturing market where successful games are capturing larger audiences, influenced by factors including intense competition, rapid iteration strategies, and the emergence of dominant titles creating a “head effect” in the ecosystem.

C. Innovation Landscape

Cross-Platform Gaming Trends

Mobile gaming established itself as the primary platform for Web3 gaming in 2024, emphasizing accessibility and seamless user experiences. The mobile-first approach has shaped how developers design blockchain games, focusing on intuitive interfaces and simplified onboarding processes, accounting for 29.4% of new launches in 2024.

Social platforms, particularly Telegram, emerged as powerful catalysts for Web3 gaming adoption, comprising 20.9% of new Web3 game launches. Telegram’s success stems from its massive user base, simplified in-app experience, and ability to bypass traditional app store restrictions. The platform’s impact peaked in Q3 2024, with 11 games surpassing 10 million monthly active users (MAU). Notably, TON successfully converted this massive user base into on-chain participants, creating a spillover effect across Web3 gaming, memecoins, and DeFi sectors. The success prompted multiple blockchain networks beyond TON to compete for Telegram’s traffic, with Aptos, Sui, Core, and others launching their own Telegram-based initiatives.

Similarly, Line’s announcement to launch 20 mini dApps in December 2024 signals growing interest from mainstream messaging platforms in blockchain gaming integration.

The console gaming sector remained relatively unexplored in Web3 gaming, with major manufacturers Microsoft and Sony maintaining cautious positions. However, new approaches emerged to bridge this gap. Some developers, like Gunzilla Games with Off The Grid, chose to separate core gameplay from blockchain features to align with traditional console gaming expectations. Meanwhile, blockchain platforms began developing their own handheld Web3 gaming consoles, exemplified by Sui’s SuiPlay0X1 and Solana’s Play Solana Gen1 (PSG1) announcements, potentially creating a new category of dedicated Web3 gaming devices.

Traditional Gaming Companies’ Entry

2024 marked a significant shift in traditional gaming companies’ approach to blockchain gaming, with major studios moving from experimental initiatives to concrete launches and strategic developments.

Ubisoft led this transition with the October launch of Champions Tactics: Grimoria Chronicles on Oasys Layer 2 HOME Verse, demonstrating a sophisticated approach to NFT integration in gaming. The tactical RPG implemented a range of NFT-based features while maintaining traditional gaming elements, representing a balanced approach to blockchain integration.

Square Enix strengthened its blockchain presence through strategic investments and partnerships. Beyond investing in gaming platforms Elixir Games and HyperPlay, the company announced plans to bring its Symbiogenesis game to HyperPlay, showing commitment to both development and infrastructure support in the blockchain gaming space.

The involvement of Sony Group signaled a major push into blockchain gaming, both through investment and infrastructure development. While supporting double jump.tokyo Inc.’s $10 million Series D round, Sony also announced Soneium, a Layer 2 network aimed at bridging Web3 innovation with consumer applications across gaming and entertainment sectors.

AI Integration in Game Development

As artificial intelligence (AI) revolutionized various industries in 2024, the Web3 gaming sector emerged as a key beneficiary of AI innovations, opening new opportunities for both game development and player experiences.

AI has revolutionized in-game interactions and content generation. Game studios are leveraging AI to create more sophisticated non-playable characters (NPCs) that can adapt to player behavior and generate personalized quests based on individual player history and preferences. This personalization enhances player engagement by making gameplay experiences more relevant and individualized.

On the development side, AI has significantly streamlined the creation process. Developers are utilizing AI tools to auto-generate game environments and assets, substantially reducing production time and costs. This democratization of game development has enabled smaller teams to create high-quality games that can compete with larger studios.

AI has also enhanced the operational aspects of Web3 gaming. The technology is being employed to automate game testing processes and monitor on-chain transactions for potential fraud or cheating, particularly crucial in games with complex economic systems. Additionally, AI algorithms are helping optimize game economics and token models, addressing one of the fundamental challenges in sustainable Web3 game design.

IV. Investment Landscape

Annual Funding Overview

Web3 gaming secured $909.4 million across 220 funding events in 2024. While funding amount decreased 7.3% from 2023 and remained significantly below the 2021–2022 boom period ($3.2 billion and $2.7 billion, respectively), the number of funding events increased 48.7% from 2023, indicating continued investor interest. despite smaller deal sizes.

The year saw a marked shift toward early-stage investments, with 76 early-stage deals (34.6% of total events) compared to just 20 Series A or later rounds (9.1% of total). This trend suggests that while new projects continue to attract initial funding, many projects from the 2021–2022 boom period are finding it challenging to secure follow-on rounds.

Among investors, Animoca Brands maintained its leadership position with 38 investments, a 192.3% increase from 2023, participating in 17.3% of all 2024 funding events. The Spartan Group and Big Brain Holdings followed with 22 and 15 investments, respectively, with the top 10 investors collectively accounting for 152 investments.

Major Funding Events

The year saw selective but significant funding rounds, with seven projects raising over $20 million in single events. Azra Games led with a $42.7 million Series A round, focusing on bringing console-quality gameplay to mobile platforms.

Looking at cumulative funding, Monkey Tilt secured $51 million across two rounds, leveraging its gaming-entertainment-gambling hybrid model. Gunzilla Games demonstrated strong investor confidence by securing four funding rounds from prominent investors including VanEck, Coinbase Ventures, Delphi Ventures, and Avalanche’s Blizzard Fund.

Strategic Investment Trends

As the industry matured beyond the exuberance of 2021–2022, the focus has pivoted toward fewer, higher-quality projects, with investors becoming increasingly selective in their approach.

Funding increasingly targeted gaming infrastructure and development tools rather than just games themselves. Notable examples included NPC Labs’ $18 million seed round for building Web3 games on Base, and Alliance Games’ $5 million Series A for AI-powered decentralized infrastructure. This trend reflects investors’ growing interest in foundational technologies that can support multiple games and platforms.

Platform and multi-chain development attracted substantial attention, particularly projects building cross-chain gaming ecosystems. Seeds Labs secured $12 million for its flagship product Bladerite on Solana, while B3’s launch of its Open Gaming Layer with Prime Chain demonstrated investors’ interest in expanding cross-chain gaming capabilities.

Besides, new gaming categories gained significant investor attention in 2024, particularly Telegram-based gaming initiatives and gambling gaming projects despite regulatory challenges.

V. Industry Evolution and Future Outlook

The Web3 gaming industry witnessed significant evolution in gaming models throughout 2024. The “play-to-earn” model that dominated previous cycles gave way to more sustainable approaches. “Tap-to-earn” games on Telegram demonstrated unprecedented user acquisition capabilities, while “play-to-airdrop” strategies like Pirate Nation and Pixels’ campaign offered new user acquisition methods. Meanwhile, established projects shifted toward “play-and-earn” models that prioritize gameplay over financial incentives.

However, the sector faced persistent challenges. Technical barriers remained significant, particularly in achieving seamless blockchain integration without compromising gaming experience. Regulatory uncertainty, especially around gambling features and token classifications, continued to influence development decisions.

Most critically, sustained on-chain engagement emerged as a fundamental concern. This was particularly evident in Telegram games’ performance: Hamster Kombat’s MAU dropped from over 100 million in September to 22.9 million by mid-December, with only 0.0004% of users engaging in on-chain gaming activities. While other Telegram games showed higher conversion rates, most remained below 1%. It’s worth noting that these metrics specifically reflect on-chain gaming activities, as most Telegram games’ core gameplay remains off-chain, with users potentially more active in other sectors like memecoins or DeFi. This highlights the persistent challenge of converting platform users into active blockchain gamers.

2025 Outlook: Reclaiming Relevance

As Web3 gaming seeks to reassert its position in the crypto landscape, several key trends emerge as potential catalysts for transformation:

Social platform integration stands as the most promising path to mainstream relevance. The phenomenal success of Telegram-based games has demonstrated the power of meeting users where they are, with platforms like Line and TikTok poised to follow. This approach could finally solve the sector’s user acquisition challenges by tapping into established social networks rather than building communities from scratch.

AI integration will evolve from a marketing feature to a fundamental driver of innovation. Beyond enhancing game development and NPC interactions, AI could address the sector’s core challenges in economic design and user retention — areas where Web3 gaming has traditionally struggled to compete with traditional gaming experiences.

Sustainable growth through integration may ultimately determine the sector’s relevance. Success will likely come not from competing with traditional gaming or other crypto sectors, but from seamlessly blending with them. This means focusing on how blockchain can enhance gaming experiences rather than define them, developing more sophisticated token economics, and prioritizing user experience over crypto-native features.

The path forward suggests that Web3 gaming’s role in the crypto ecosystem may be less about dominance and more about integration — creating genuine value by bridging the gaps between traditional gaming, social platforms, and blockchain technology. This evolution could help the sector move beyond being just another crypto vertical to becoming an essential layer in the future of gaming.

This is a joint report by Footprint Analytics and CoinMarketCap Research.

About Footprint Analytics

About CoinMarketCap

CoinMarketCap is the world’s most-referenced price-tracking website for crypto assets in the rapidly growing cryptocurrency space. Its mission is to make crypto discoverable and efficient globally by empowering retail users with unbiased, high quality and accurate information for drawing their own informed conclusions.

CoinMarketCap Research aims to leverage CMC’s data analysis and bring unique insights into the crypto market. We look to collaborate with other industry-leading voices and create a platform for people to learn and share their passion for crypto.

Blockchain Landscape 2024: From Infrastructure Competition to Application Innovation

2024-12-30T04:06:24.162Z

Author: Stella L (stella@footprint.network)

Data Source: Footprint Analytics Chains Research Page

2024 marked a watershed year for the blockchain industry as it evolved from technical competition to practical implementation. While market capitalization surged 105.3% to $2.8 trillion and Bitcoin surpassed $100,000, the ecosystem’s true transformation lay in its strategic development. Bitcoin’s institutional adoption through ETFs, Ethereum’s Layer 2 expansion reaching 200 chains, and Bitcoin Layer 2’s extraordinary 1,277.6% TVL growth demonstrated the industry’s shift from technological experimentation to real-world utility. This evolution signaled blockchain’s maturation into an infrastructure driven by application needs rather than pure technical advancement.

Note: Unless otherwise specified, all data in this report reflects market activity through December 20, 2024.

Market Metrics: Growth and Transformation

The blockchain sector achieved unprecedented growth in 2024, marked by significant expansion across multiple metrics.

Total market capitalization surged 105.3% to reach $2.8 trillion. Bitcoin dominance increased to 69.8%, while Ethereum’s share declined from 20.4% to 15.2%. BNB Chain and Solana maintained relatively stable positions with 3.5% and 3.3% respectively, while other platforms comprised 8.1% of the market.

The DeFi sector demonstrated robust growth in 2024, with total value locked (TVL) reaching $102.8 billion by year-end, marking an 88.6% increase. Among the top 10 chains by TVL, Bitcoin and TON led the expansion with remarkable TVL increases exceeding 2,000%, while Aptos, Sui and Solana showed strong momentum with gains of 754.4%, 677.1% and 321.3% respectively. However, this growth was not universal across all major chains, as both Tron and Avalanche experienced declines in their TVL.

The Ethereum Layer 2 landscape underwent significant consolidation in 2024. Arbitrum maintained leadership with $10.6 billion TVL and 41.1% market share, though declining from its 50.8% dominance in 2023. Base emerged as the breakthrough story, securing second position with $5.8 billion TVL (22.5% share), while Optimism settled into third with $4.0 billion TVL (15.8%). Together, these three platforms consolidated control over 79.1% of Ethereum L2 rollups DeFi TVL, while previous contenders including Blast, zkSync, and Starknet saw declining market shares.

Meanwhile, The ecosystem’s expansion was evident with 50 Rollups and 70 Validiums & Optimiums live on mainnet, plus approximately 90 upcoming chains, bringing the total to over 200 chains.

The Bitcoin Layer 2s and sidechains experienced explosive growth, with total TVL reaching $2.6 billion — a remarkable 1,277.6% increase from 2023. Core led the ecosystem with $789.1 million TVL (30.3% share), followed by Bitlayer ($503.5 million, 19.4% share) and BSquared ($330.3 million, 12.7% share). The ecosystem’s expansion was evident not only in value but also in diversity, with the number of active chains more than doubling throughout the year.

Competitive Landscape: Leaders and Challengers

In 2024, the blockchain ecosystem witnessed significant shifts in competitive dynamics, marked by Bitcoin’s strengthened dominance, Ethereum’s strategic pivot, and the emergence of new challengers.

Bitcoin: From Store of Value to Financial Infrastructure

Bitcoin achieved remarkable growth in 2024, with price surging 129.2% and market capitalization growing 131.7%. This growth was catalyzed by institutional adoption through spot ETFs, the April halving event, and favorable post-election sentiment. Beyond reaching the $100,000 milestone, Bitcoin’s ecosystem demonstrated fundamental evolution through two key developments:

Institutional Integration: The successful launch of spot ETFs in January revolutionized institutional access, with BlackRock’s product reaching $20 billion in assets. Bitcoin surpassed both silver and Saudi Aramco to become the seventh-largest global asset, marking its transition from a speculative asset to a recognized store of value.

BTCfi Emergence: The Bitcoin ecosystem expanded beyond price appreciation through innovative financial products. Babylon’s Bitcoin staking program, Solv Protocol’s cross-chain solutions, and Core’s Fusion Upgrade with Dual Staking demonstrated growing sophistication. Cross-chain functionality advanced through BOB network’s Optimism integration and BEVM’s “Super Bitcoin” framework, though standardization challenges remain.

Ethereum: Adapting to Layer 2 Reality

2024 marked a pivotal year for Ethereum as it navigated the transition to a Layer 2-centric ecosystem. Despite a 55.8% price increase to $3,744, Ethereum faced complex challenges in redefining its role and maintaining relevance amidst growing Layer 2 adoption. While the successful launch of spot ETFs in July provided institutional validation, Ethereum’s price performance notably lagged behind Bitcoin’s surge.

The Ethereum mainnet underwent significant changes with the Dencun Upgrade implementation, which successfully reduced Layer 2 costs and improved scalability. However, the increasing migration of activity to Layer 2s impacted base layer fee revenue, prompting discussions about long-term sustainability. The Ethereum Foundation responded with strategic initiatives, including Proto-Danksharding (EIP-4844) implementation, development of cross-L2 communication standards, and enhanced security requirements for Layer 2 solutions.

The Layer 2 ecosystem demonstrated remarkable growth and consolidation throughout the year. Notable new entrants enriched the ecosystem, including World Chain’s privacy-focused solution, Uniswap’s Unichain announcement, and Sony’s entry with Soneium targeting mainstream entertainment applications.

This evolution highlighted Ethereum’s transition from a pure execution layer to a settlement and security provider for a diverse Layer 2 ecosystem. While questions remained about revenue models and competitive dynamics, Ethereum’s robust developer activity and continued innovation in scaling solutions demonstrated its adaptability.

Solana: The Third Giant

2024 marked Solana’s impressive comeback, with a 70.8% price increase and 90.9% market cap growth, reaching a new all-time high above $260 in November. This resurgence began with Jupiter’s January airdrop, which catalyzed ecosystem activity. Solana distinguished itself as a hub for retail traders, fostering vibrant meme and DeFi communities. Beyond meme culture, Solana advanced on multiple fronts: restaking protocols, modular Layer 2 solutions, and stablecoin innovations. The ecosystem’s expansion through SVM chains like Eclipse, Soon, Atlas, and Sonic further extended its influence.

The Rise of New Forces: TON, Sui & Base

TON: Social Integration Powers Platform Growth

The Open Network(TON) demonstrated remarkable growth in 2024, with Toncoin’s price rising 149.6% and market cap increasing 84.3%. TON’s success largely stemmed from its deep integration with Telegram, effectively bridging traditional social networking with blockchain technology. The platform’s simplified crypto experience through Telegram’s wallet functionality and blockchain integration provided millions of users access to games, memes, and DeFi applications, establishing a compelling model for mass adoption.

Sui: Move Language Pioneer to Ecosystem Leader

Sui emerged as a standout performer with extraordinary growth — 461.6% in token price and 1,363.8% in market cap. This success reflected growing confidence in Move language technology and ecosystem development. Sui’s focus on DeFi and gaming, including Telegram game integration and the innovative SuiPlay0X1 gaming console development, demonstrated its comprehensive approach to ecosystem growth. The platform’s emphasis on user experience and protocol development created positive network effects, attracting both developers and users.

Base: Institutional Backing Drives Rapid Growth

This impressive growth was driven by several key factors. Coinbase’s robust support, particularly through its user-friendly smart wallet implementation, significantly lowered entry barriers for mainstream users. The platform gained substantial momentum from successful social applications like friend.tech and Clanker, while the popularity of memecoin initiatives further boosted on-chain activity. The Dencun Upgrade’s implementation notably reduced gas fees, making Base increasingly attractive for both developers and users.

Key Themes of 2024

Protocols Are Becoming Chains

2024 witnessed a significant trend of established protocols launching their own blockchains, diversifying the ecosystem across multiple sectors. DeFi giant Uniswap announced Unichain, while gaming platform Treasure DAO developed a ZK-based Layer 2. The NFT space saw Pudgy Penguins launch Abstract, and Web3 platform Galxe introduced Gravity. This trend extended beyond established protocols, with innovative new chains like Monad, Berachain, and HyperLiquid entering the space, reflecting a broader shift toward specialized blockchain infrastructure.

From Exploration to Strategic Integration

Strategic Corporate Implementation

2024 marked a decisive shift from experimental blockchain initiatives to strategic implementation across the enterprise sector. Financial institutions led this transition, with BlackRock’s Bitcoin ETF reaching $20 billion and PayPal expanding PYUSD to Solana. Tech giants demonstrated deeper commitment through innovative approaches: Sony launched Soneium for entertainment applications, while Google Cloud expanded its Web3 portal offerings. Infrastructure development saw particular momentum with Circle launching native USDC on Sui and Visa integrating Solana for settlements.

Shifting Investment Paradigms

The blockchain infrastructure sector showed strong recovery in 2024, with networks securing $1.7 billion across 174 funding events — a 137.1% increase from 2023. Notably, investment strategy shifted from pure infrastructure plays to application-focused innovation. Early-stage investments comprised 21.4% of total funding, while Series A and B rounds accounted for 31.8%, reflecting a maturing ecosystem.

Venture capital’s investment thesis evolved significantly, prioritizing user-centric applications over traditional infrastructure development. This was evidenced by substantial investments in consumer-facing projects: Monad’s $225 million raise for user experience optimization, and Celestia and Berachain each securing $100 million for application-focused infrastructure.

From Technical Competition to Application Innovation

The blockchain industry experienced a fundamental shift in 2024, moving from a technology-first approach to an application-driven strategy. This transformation challenged the traditional “Build it and they will come” mentality that had dominated previous years. Despite significant advances in technical capabilities, increased capacity didn’t directly translate to proportional user growth. Notably, Ethereum’s base layer maintained higher user operations per second (UOPS) than most Layer 2s, despite its technical limitations, highlighting the complex relationship between technological capability and actual adoption.

This reality prompted a strategic pivot across the ecosystem. Blockchain platforms increasingly focused on identifying specific user needs and building targeted solutions, rather than pursuing pure technical advancement. This “Find them and build for them” approach manifested in several successful initiatives. Social-financial integration emerged as a particularly effective strategy, with TON’s Telegram integration and Base’s friend.tech demonstrating how familiar social interfaces could drive blockchain adoption. Simplified user experiences through account abstraction and familiar authentication methods significantly reduced entry barriers for mainstream users.

The evolution of meme culture in the blockchain space further exemplified this shift toward application-focused development. What began as purely speculative activity evolved into a legitimate user acquisition channel, particularly on platforms like Solana and Base. These networks successfully leveraged meme initiatives to drive ecosystem growth while building sustainable community engagement. The success of these user-centric approaches demonstrated that sustainable growth in the blockchain sector increasingly depends on understanding and serving user needs rather than purely advancing technical capabilities.

Looking Ahead to 2025

As the blockchain industry moves from technical experimentation to practical implementation, 2025 promises to be a year of significant transformation.

Regulatory Clarity

The regulatory environment shows promise for significant improvement, particularly in the US. A clearer regulatory framework is anticipated to benefit the entire sector, potentially including progress on stablecoin legislation. This regulatory clarity should encourage increased institutional participation through regulated products and services, while fostering competition among jurisdictions for thoughtful crypto regulation.

Chain Specialization Trend

Chain specialization emerges as a defining trend, moving away from generic Layer 1 competition toward purpose-built architectures. Application-specific chains and optimized execution environments will gain prominence, supported by enhanced cross-chain infrastructure. The rollup-as-a-service (RaaS) sector is poised for expansion, facilitating easier deployment of customized blockchain solutions for enterprises and protocols alike.

Technical Innovation & AI Integration

Technical advancements will continue to shape the ecosystem, with “Proto-Danksharding” implementation doubling blob capacity and enhanced focus on chain abstraction improving user interfaces. The development of standardized frameworks for cross-chain communication will further streamline interoperability. Meanwhile, AI integration is poised to transform blockchain infrastructure, from improving user interfaces to enabling sophisticated on-chain AI agents and decentralized model training, marking a convergence of two transformative technologies.

Infrastructure Supporting Innovation

2025 will likely see infrastructure development increasingly driven by application needs rather than pure technical advancement. The modular blockchain stack will mature, with specialized solutions for data availability, settlement, and execution layers. We expect to see enhanced infrastructure support for AI applications, decentralized computing networks, and social-financial integration. This evolution will enable more sophisticated applications while maintaining security and decentralization, creating a robust foundation for the next wave of blockchain innovation.

Closing Thoughts

The past year has demonstrated that sustainable growth depends not just on technological capabilities, but on meaningful user adoption and practical utility. With improved regulatory clarity, advancing technical infrastructure, and growing institutional participation, the foundations are in place for blockchain technology to achieve meaningful mainstream adoption. The focus now shifts from “what’s technically possible” to “what’s practically valuable” — a transition that will define the industry’s next phase of growth in 2025.

About Footprint Analytics

November 2024 Chains Report: Historic Bitcoin Rally Leads Market-Wide Surge

2024-12-10T07:21:51.579Z

November 2024 Chains Report

Author: Stella L (stella@footprint.network)

Data Source: Footprint Analytics Chains Research Page

November 2024 ushered in a transformative period for the blockchain ecosystem, highlighted by Bitcoin’s historic surge past major traditional assets and Ethereum’s strong recovery. The sector witnessed notable shifts in market dynamics, with altcoins staging impressive rallies and Layer 2 solutions continuing their evolution. While Bitcoin Layer 2s maintained robust growth, Ethereum scaling solutions showed more modest gains amid increasing competition.

Monthly Market Overview

November marked a historic month for cryptocurrency as Bitcoin reached unprecedented heights, surging 39.0% from $69,386 to $96,427. Ethereum followed with an impressive 47.8% gain, climbing from $2,511 to $3,711. Bitcoin’s remarkable performance pushed its market value past both silver and Saudi Aramco, securing the seventh position among global assets after briefly approaching the $100,000 milestone on November 23.

Source: BTC Price & ETH Price

The U.S. election results emerged as a catalyst for crypto market growth, with potential implications for comprehensive cryptocurrency legislation and regulatory oversight. The market’s optimistic response was particularly evident in the performance of memecoins, deAI (decentralized artificial intelligence) projects, and DeSci (Decentralized Science), which emerged as leading sectors.

The broader financial markets also showed strength, with the financial sector leading equity gains on expectations of tax reform and deregulation in the U.S. However, international markets saw some volatility, with the Chinese Yuan facing pressure amid concerns over potential U.S. tariff increases, while gold prices declined as election-related uncertainty diminished.

Layer 1

November 2024 saw total blockchain market capitalization surge 41.1% to $2.8 trillion. While Bitcoin maintained dominance at 68.1% share, this marked a decline from October’s 70.1% as altcoins gained momentum. Ethereum reversed its downward trend, reaching 15.9% market share (up 0.6%), while Solana overtook BNB Chain with 4.0% share.

Against Bitcoin’s continued price records, altcoins demonstrated exceptional performance. Stellar (XLM) led with a 466.8% price increase, followed by Hedera (HBAR) at 269.7%, Cardano (ADA) at 201.5%, and Polkadot (DOT) at 130.7%.

Source: Chain Token Market Cap and Price

Stellar’s surge notably reflected growing interest in its cross-border remittance infrastructure and CBDC capabilities, potentially influenced by expectations of clearer regulatory frameworks following U.S. election outcomes, though recent returns may also reflect specific fund flows.

The DeFi sector’s TVL grew 43.0% to $90.8 billion throughout November. Ethereum led this growth with a 61.6% increase, while Tron and Solana secured second and third positions respectively. While most top 15 chains by TVL showed gains, Polygon declined 5.9% as Polymarket experienced outflows following the U.S. Presidential election conclusion. TON continued its downward trend since October as momentum from Telegram gaming and meme activity diminished.

Source: Chain TVL Ranking

Move-stack blockchains maintained their strong trajectory, with Sui reaching new all-time highs in both token price and market cap while securing a strategic partnership with Franklin Templeton. Aptos drove increased on-chain activity through its meme-launching platform Emojicoin, while Movement approached its mainnet launch with impressive testnet metrics: over 6.6 million accounts and 153 million transactions according to Movement Explorer.

The stablecoin landscape saw significant developments with USDS launching on Solana as its first major DeFi-native stablecoin, while Ripple reportedly neared NYDFS approval for RLUSD. Amid growing stablecoin influence, Tether CEO Paolo Ardoino addressed industry concerns by confirming the company would maintain chain neutrality rather than launch its own blockchain.

Bitcoin Layer 2 & Sidechain

November 2024 saw Bitcoin Layer 2s and sidechains achieve significant growth, with total TVL reaching $2.4 billion, a 34.6% increase from October. The ecosystem witnessed intensifying competition for Bitcoin liquidity among major platforms.

Core strengthened its market leadership, growing 55.7% to reach $894.5 million TVL and expanding its market share to 37.4%. This growth was driven by November’s Fusion Upgrade, which introduced Dual Staking and Liquid Bitcoin Staking (LstBTC), enabling users to earn enhanced yields while maintaining liquidity within Core’s BTCfi platform.

Bitlayer maintained the second position with $583.3 million TVL, though its market share decreased to 24.4%. BSquared showed impressive momentum, climbing to third place with $260.8 million TVL after a 53.1% monthly increase, while Rootstock moved to fourth position with $237.8 million TVL.

Source: Bitcoin Scaling Solutions TVL

In the BTCfi protocol landscape, Pell Network emerged as the clear leader with $399.7 million TVL, followed by strong performances from Avalon Finance (Bitlayer and Core) and DeSyn (Bitlayer) across multiple chains, each maintaining over $200 million in TVL.

Ethereum Layer 2

November 2024 saw Ethereum Layer 2 solutions reach $27.5 billion in total canonically bridged TVL, marking a modest 2.0% increase from October and continuing to lag behind Bitcoin scaling solutions’ growth rate.

Source: Ethereum Layer 2 Overview- Rollups (Canonically Bridged)

Arbitrum One maintained its leadership with $11.3 billion TVL and 41.0% market share, while Base surpassed Optimism to claim second position with $5.1 billion TVL and 18.6% share, driven by increased activity from Clanker, the social meme deployment platform based on Farcaster, and AI agents creation and deployment platform Virtuals Protocol’s memecoin initiatives. Optimism settled at 17.3% market share.

Starknet moved ahead of Blast to secure fourth position with a 5.1% TVL increase, while Blast continued its decline with a 14.5% decrease. Starknet’s growth coincided with its November 26th STRK staking launch announcement and CEO Eli Ben Sasson’s promise of significant performance improvements over the next quarter. Meanwhile, World Chain showed remarkable growth with a 131.4% TVL increase to $574.5 million.

The Ethereum Foundation strengthened its ecosystem commitment by releasing its 2024 Report outlining core values and funding strategies. Vitalik Buterin emphasized Ethereum’s future development, including DAS implementation for enhanced Layer 2 scalability and infrastructure improvements to support diverse applications from ENS to consumer payments.

For more details on Web3 Gaming, chains funding events, and other chain developments for November 2024, please visit www.footprint.network or click here for more information.

About Footprint Analytics

November 2024 Web3 Game Report: Bull Market Meets Adoption Hurdles

2024-12-05T08:31:01.233Z

November 2024 Web3 Game Report

Author: Stella L (stella@footprint.network)

Data Source: Footprint Analytics Games Research Page

November 2024 marked a transformative period for Web3 gaming, characterized by substantial market growth and evolving adoption strategies. As Bitcoin surged to unprecedented levels and approached the $100,000 milestone, the gaming sector saw its market cap surge 79.1% to $35.1 billion. While traditional metrics showed impressive growth, with daily active users reaching 5.5 million, the industry continued to grapple with fundamental questions about blockchain integration and mainstream adoption. This report examines the month’s key developments across market performance, chain dynamics, and emerging trends in social platform integration.

Monthly Market Review

Source: BTC Price & ETH Price

Overall Web3 Game Market

Blockchain game tokens experienced substantial growth in November amid the broader crypto market rally, with their market cap surging 79.1% from $19.6 billion to $35.1 billion.

Source: Web3 Games & Bitcoin Market Cap

The sector’s daily trading volume reflected similar momentum, increasing 79.4% to reach $11.9 million.

Source: Web3 Game Daily Trading Volume

Daily active users hit another record in November, reaching 5.5 million average DAUs, a 15.7% increase from October. This growth was primarily driven by sustained user engagement on opBNB and continued strength in Ronin’s ecosystem.

Source: Web3 Game Daily Active Users

Transaction metrics reveal a more complex picture. While daily transactions averaged 15.3 million (up 3.3% from October), the daily transactions per user ratio declined from 3.131 to 2.810. With total monthly transactions holding steady at 460.4 million, the data suggests new users may be engaging less intensively with blockchain features than earlier adopters.

Source: Web3 Game Daily Transactions

The evolving approach of games like Off The Grid represents a crucial inflection point for the industry. By positioning itself as a traditional game with optional blockchain elements rather than an “NFT game,” it reflects a growing recognition that mainstream adoption may require a more nuanced integration of blockchain technology. This strategy — making blockchain features optional and “invisible” — could help overcome the initial resistance many gamers have toward crypto, but it also raises fundamental questions about blockchain’s role in gaming.

The technical challenges facing fully on-chain gaming remain significant. Current blockchain infrastructure struggles with the demands of real-time gameplay, competitive matchmaking, and the high-throughput requirements of modern gaming. While Layer 2 solutions and purpose-built gaming chains are emerging, the gap between traditional gaming performance expectations and blockchain capabilities continues to influence development strategies.

Despite the current bull market providing favorable conditions for growth, the Web3 gaming sector has yet to produce its defining breakthrough moment. The industry appears to be at a crossroads between maintaining crypto-native appeal and achieving mainstream adoption, with successful projects likely needing to balance both aspects while technical infrastructure catches up to ambition.

Web3 Game Chains

Active games across blockchain networks reached 1,696 in November, marking a 4.6% increase from October. The established market leaders maintained their dominance in game distribution, with BNB Chain, Polygon, and Ethereum commanding shares of 20.9%, 15.4%, and 13.4% respectively.

In terms of user engagement, opBNB, Ronin, and Nebula (SKALE) emerged as the leading networks with average DAUs of 180.9 million, 0.9 million, and 0.4 million respectively.

Source: Daily Active Users by Chain

opBNB’s momentum continued with a 46.1% increase in average DAU from October. This growth was primarily driven by flagship titles SERAPH: In The Darkness and MEET48, while the platform also benefited from projects migrating from BNB Chain.

Ronin demonstrated remarkable recovery, doubling its DAU from 0.6 million to 1.2 million throughout November, bolstered by new partnerships and the successful launch of Fableborne alongside Lumiterra’s growing user base.

TON’s ecosystem faced challenges with a 41.9% decline to 116.4K DAU, highlighting the retention challenges in Telegram-based games. But the industry always has some exceptions. Sui’s average DAU in November was 233.3K, 23.1% increased from last month. The Telegram game BIRDS has contributed most of the user base, with average DAU 224.9K, and its weekly new user retention is one of the industry-level examples.

Source: BIRDS Weekly New User Retention

Despite these successes, the Web3 gaming industry continues to evolve amid ongoing debates about optimal infrastructure. November saw the emergence of new gaming-focused chains, with major players expanding into chain development. Yield Guild Games (YGG), one of the largest Web3 gaming guilds, launched its Studio Chain, marking its evolution into infrastructure development.

Meanwhile, B3 introduced its Open Gaming Layer, with Prime Chain announced as its first implementation. Developed by Echelon Prime Foundation, Prime Chain will power Parallel, the ambitious sci-fi card game, demonstrating the growing trend of purpose-built gaming infrastructure. Rather than adapting to existing blockchain limitations, gaming projects and developers are now building chains tailored to their specific gaming needs.

Web3 Games Overview

By the end of November, the blockchain gaming universe encompassed 3,602 games, with 1,361 maintaining active engagement. Of these, 298 games attracted over 1,000 monthly active users (MAU), representing 21.9% of active games.

Source: Monthly Active Web3 Games

Analysis of Telegram gaming metrics reveals a significant disparity between platform users and blockchain engagement. As of November 30, while Hamster Kombat ranked 2nd in Telegram gaming with 26.2 million MAU, it recorded only 736 on-chain users. Even MemeFi, which achieved the highest conversion rate among the top 10 games, saw just 7.96% of its users engaging on-chain, with 1.4 million TON users.

Source: Telegram Games MAU & On-chain MAU on TON

The success of Telegram’s gaming ecosystem, despite these conversion challenges, is catalyzing a broader movement among social media platforms. Line, the dominant messaging platform in Japan, Taiwan, Thailand, and Indonesia, has announced plans to launch 30 mini dApps by January’s end, expanding to 150 by the end of Q1 2025. Gaming applications will form the largest segment of these releases on the Kaia blockchain, alongside social and DeFi applications.

Meanwhile, Solana-based project Sonic X has surpassed 1 million KYC-verified users through TikTok integration. The platform’s success stems from its seamless onboarding process. Users can access games directly through their TikTok accounts while Solana wallets are created automatically in the background. This achievement demonstrates TikTok’s potential as a gateway to Web3 gaming.

Investment and Funding

In November, Web3 gaming secured $73.6 million across 18 funding events, marking a 22.3% decrease from October despite having five more events. Eight of these events did not disclose their funding amounts.

Web3 Gaming Industry Funding Rounds in November 2024 (Source: crypto-fundraising.info）

Monkey Tilt led the month’s funding with a $30 million Series A round led by Pantera Capital. The platform, which combines gaming and entertainment with gambling features, has achieved $200 million in monthly betting volume since its March launch. The platform includes social features like in-game chat and user-to-user donations, though it remains unavailable in major markets like the US, UK, and Australia due to regulations. The gambling sector saw continued interest, with FanDuel, BRKT, and BoxBet also securing funding, despite regulatory challenges.

In other notable funding news, Animoca Brands contributed an additional $10 million to Mocaverse, building on previous investments of $31.88 million. The investment includes a warrant for MOCA Coin tokens at an implied $1 billion fully diluted value, supporting Mocaverse’s development of interoperable infrastructure for mainstream crypto adoption.

About Footprint Analytics

Viral Marketing in Western Markets: Challenges and Breakthroughs for Web3 Growth

2024-11-25T02:17:26.272Z

Author: Stella L (stella@footprint.network)

As Web3 projects expand globally, many are grappling with growth barriers stemming from cultural differences. While viral marketing strategies have proven highly successful in Asian markets, their implementation in Western markets presents unique challenges, reflecting deeper cultural distinctions and user psychology.

The Asian Success Story: Understanding Viral Growth

The phenomenal success of viral marketing in Asia is exemplified by platforms like Pinduoduo, an e-commerce platform that revolutionized social commerce. From its founding in 2015 to 2020, Pinduoduo achieved remarkable growth, amassing 788 million annual active buyers according to their financial reports, establishing itself as China’s second-largest e-commerce platform.

This success was built on Asia’s deep-rooted collective cultural values, where social networks are deeply intertwined and group identity is strong. In this environment, sharing promotional information isn’t viewed as social pressure but rather as a way to maintain relationships. This cultural foundation provided fertile ground for viral marketing strategies to flourish.

The region’s highly digitalized social environment played a crucial role as well. Advanced mobile payment systems combined with frequent social media usage created a mature digital social culture where sharing shopping experiences and deals became a natural part of daily social interactions.

Western Market Entry: Success Stories and Cautionary Tales

Temu’s entry into the U.S. market represents an interesting case study in adapting Asian viral marketing strategies for Western audiences. As an e-commerce company connecting consumers with manufacturers, Temu modified the traditional viral referral model to suit Western preferences. Their “Referral Bonus” program offered a straightforward proposition: users could earn $20 for referring five new users through platforms like WhatsApp, Twitter, or Facebook.

The results were remarkable. In January 2023, Temu maintained the top position in iOS App Store downloads for 28 consecutive days. By the end of 2023, their monthly active users (MAU) ranked second only to Amazon, and they achieved approximately $16 billion in GMV, surpassing SHEIN, which had been in the market considerably longer.

However, Temu’s success is more the exception than the rule. The past decade has seen numerous failed attempts at viral marketing in Western markets. Facebook’s “Refer-a-Friend” program faced significant user backlash due to spam-like invitations. Perhaps most notably, Groupon’s trajectory serves as a cautionary tale. After achieving a $16 billion valuation at its 2011 IPO, the company’s over-reliance on discounts and social pressure led to user attrition, with its market value plummeting to approximately $320 million by November 2024. Snapchat’s referral programs similarly struggled, despite the platform’s popularity among younger users. Privacy concerns and marketing fatigue significantly hampered the effectiveness of their social sharing initiatives.

The Cultural Divide: Why Traditional Viral Marketing Struggles in the West

Western markets present distinct challenges rooted in fundamental cultural differences. Unlike Asian societies’ collective orientation, Western cultures emphasize individualism, personal boundaries, and privacy protection. This cultural foundation makes traditional viral marketing approaches less effective.

Social pressure manifests differently in Western markets. Users are particularly concerned about how commercial promotion might affect their authentic social relationships, and they resist being perceived as marketers within their social circles. This psychological burden significantly constrains natural viral spread.

Trust-building presents an even greater challenge in Western markets. Cryptocurrency-related projects generally face lower trust levels in these regions, with users maintaining a cautious attitude toward emerging technologies. Establishing trust requires a longer process and more substantial effort. Additionally, Western users have higher standards for marketing approaches, with direct incentive-based promotion often proving less effective than more sophisticated value proposition methods.

Breakthrough Strategies for Western Markets

Success in Western markets requires a strategic pivot from “pressure marketing” to “value sharing.” This transformation encompasses several critical components for effective implementation:

Foundational Elements

A successful viral marketing strategy in Western markets must prioritize transparency in rules and reward mechanisms. This means clearly communicating how the system works and what users can expect, building trust through openness rather than opacity. User autonomy should be at the forefront, giving participants full control over their involvement and sharing activities.

In the Web3 context, value propositions can take various forms beyond traditional monetary rewards. Projects can offer waitlist privileges, loyalty points, tokens, or NFTs as incentives. The key is to ensure these rewards align with user interests while maintaining the project’s ecosystem health.

Technical Innovation and Tools

The emergence of no-code tools has significantly lowered implementation barriers, enabling operation teams to rapidly adjust strategies based on market response. Robust data analytics capabilities support decision optimization, helping projects better understand and respond to user needs. Native product integration, streamlined participation processes, and transparent reward mechanisms all contribute to enhanced user experience.

Multi-Channel Approach

While viral marketing can be effective, it shouldn’t operate in isolation. Temu’s success demonstrates the power of a multi-channel strategy. While most Web3 projects may not have access to Super Bowl-sized advertising budgets (Temu’s marketing efforts resulted in the average U.S. user encountering their ads 60–70 times across platforms), they can leverage industry-specific advantages. Combining influencer partnerships, social media content creation, and viral mechanics often yields superior results. This approach allows projects to maintain consistent brand presence while encouraging organic growth through user sharing.

Privacy and Security

In the Web3 space, projects can leverage blockchain technology to protect user privacy while maintaining transparency. This includes secure handling of wallet addresses and other sensitive information, strictly adhering to local privacy regulations. Smart contracts can automate reward distribution while preserving user privacy, creating a trustworthy environment for participation.

Looking Forward

The future of viral marketing in Western markets lies in innovation rather than replication. As Web3 technology evolves, projects that successfully balance growth mechanics with user privacy, while delivering authentic value propositions, will lead the next wave of adoption.

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Understanding Growthly: A Web3 Viral Marketing Tool

2024-11-19T06:46:03.194Z

Author: Stella L (stella@footprint.network)

Many Web3 projects consider Growthly to be just another quest platform. This misunderstanding stems from the prevalence of quest-based growth tools in the Web3 space. However, Growthly serves a fundamentally different purpose: it’s a viral marketing tool that helps projects build sustainable growth through their existing user base.

Why Viral Marketing Matters for Web3

Web3 currently has about 5 million active users, compared to billions of Web2 users. This gap presents both a challenge and an opportunity. Traditional user acquisition through quest platforms often leads to temporary spikes in metrics but struggles with real user retention. Quest participants tend to move from one project to another, seeking rewards rather than becoming engaged users.

Viral marketing offers a different approach. Instead of relying on external platforms’ users, it leverages a project’s existing community to reach new, genuinely interested users. When done right, this method typically results in better user retention and lower acquisition costs.

For projects in their early stages with limited user bases, paid traffic from other platforms often seems like the only option. However, combining paid marketing with a project’s own platform(e.g. mini app) creates a more effective growth strategy. When users acquired through paid channels land in a project’s custom mini app environment rather than an external platform, they’re more likely to stay engaged. The familiar Telegram interface, coupled with the project’s branded experience and built-in viral sharing mechanisms, helps convert paid users into active community members who then bring in more users organically. This hybrid approach typically yields higher retention rates and better return on investment compared to purely paid acquisition strategies.

Growthly vs. Quest Platforms: Key Differences

The main difference lies in the approach to user acquisition. Quest platforms focus on distributing tasks to their existing user base. This often results in high bot participation — typically 70–80% of participants — as users create multiple accounts to farm rewards.

Growthly, instead, helps projects activate their existing users to bring in new ones. It provides infrastructure for Web3 projects to create their own viral marketing campaigns. Through no-code tools, projects can create customized quests or mini apps, particularly on Telegram where many Web3 communities already exist. Built-in analytics help track real user behavior and campaign performance, allowing projects to understand and optimize their growth strategies.

For example, when Ton.AI used Growthly’s infrastructure, they didn’t just list tasks on a quest platform. Instead, they created a mini app that their users could easily share with friends, leading to 2.5 million users in three months with notably low acquisition costs.

How This Affects Growth Strategy

This fundamental difference changes how projects should think about their growth strategy. With quest platforms, the focus is on creating attractive rewards to draw users from the platform. With Growthly, the focus shifts to designing engaging experiences that existing users will want to share with others.

Take the case of Matr1x Fire, Polygon’s top game. Rather than simply offering quest rewards, they used Growthly to develop a mini app that made it easy for current players to invite friends to join the game. This approach helped them maintain user engagement beyond the initial reward period.

Available Free Tools

Growthly now offers free access to its core tools, including Quest H5, SDK, and Telegram mini apps. Projects can quickly start with:

Quest creation through the Growthly Business Portal.
Choice of four template types: Cash Rally, Lucky Wheel, Lucky Draw, and Traditional Quest.
Multiple deployment options including:
Direct Link Sharing: Perfect for social media sharing and easy to integrate into existing marketing channels.
SDK Embedding: Seamless integration with your existing app with customizable UI/UX.
Telegram Mini App Creation: Increased visibility within the Telegram ecosystem.

Looking Forward

The Web3 space is moving beyond simple task completion as a growth strategy. While quest platforms remain useful for specific purposes, sustainable growth requires tools that can help build genuine user communities. Understanding this distinction helps projects choose the right tools for their specific growth needs.

For Web3 projects considering their growth strategy, the key question isn’t just how to attract users, but how to build a self-sustaining community. This requires thinking beyond one-time rewards to create experiences worth sharing.

About Footprint Analytics

Blockchain Networks Race for Telegram Users: A Sustainable Strategy?

2024-11-16T09:11:50.218Z

Author: Stella L (stella@footprint.network)

The blockchain gaming landscape in 2024 has been dramatically reshaped by an unexpected catalyst: Telegram. As blockchain networks scramble to capture users from this messaging platform’s massive user base, a critical question emerges: Is this strategy delivering sustainable growth, or merely creating temporary surges in vanity metrics?

The Evolution of the Telegram Gaming Phenomenon

The Telegram gaming revolution began with Notcoin’s simple tap-to-earn mechanic, which quickly proved that the messaging platform could be a powerful gateway to Web3. This success triggered a cascade of developments across the blockchain ecosystem.

What started as simple gaming experiments on The Open Network (TON) evolved into a full-scale rush, with multiple blockchain networks vying to replicate this success. Aptos became the first chain to capitalize on this opportunity when its Telegram game Tapos drove daily transactions to surge beyond 50 million in August. This breakthrough sparked a wave of adoption, with networks like Sui, Core, and Matchain quickly launching their own Telegram-based initiatives.

The phenomenon caught the attention of major cryptocurrency exchanges, who moved swiftly to capitalize on the trend. Binance took the lead by strategically listing several Telegram-based gaming tokens, including Hamster Kombat and Catizen. Other exchanges rapidly followed, seeking to capture their share of this emerging market.

The trend has also attracted significant institutional interest since July 2024. Notable investments include Binance Labs backing Pluto Studio, the publisher behind the successful Catizen game. GAMEE, Animoca Brands’ mobile gaming subsidiary and creator of WatBird, secured two consecutive funding rounds in August, highlighting growing institutional confidence in Telegram-based gaming platforms.

Blockchain Networks’ Strategies and Results

Multiple blockchain networks have integrated Telegram games in 2024, with varying degrees of success in user acquisition and retention. The performance data from Core, Sui, and Matchain offers insights into both the immediate impact and longer-term sustainability of this strategy.

Core

Core, a Bitcoin-powered EVM-compatible Layer 1 blockchain, entered the Telegram gaming space with TomTalk in late September 2024. The “talk-to-earn” game allows users to earn points through chatting on its Telegram mini app.

According to Footprint Analytics, TomTalk’s impact on Core has been substantial. By November 12, the platform had accumulated 729,252 unique wallet users and generated 756,661 transactions since launch. The game’s peak activity occurred during October 28–31, reaching an average daily active user count of 79,600, which represented 14.3% of Core’s total DAU. During this same period, the game generated an average of 79,600 daily transactions, accounting for 7.6% of Core’s total transaction volume.

Source: TomTalk Daily & Total Transactions

However, after the initial surge, TomTalk’s metrics showed a significant cooling period. By November 12, the game’s average daily active users had settled at 14,481 in this month, with average daily transactions stabilizing at 14,489. The TomTalk Telegram mini app maintained a monthly active user base of 16,092.

Sui

Sui, a Move-based Layer 1 blockchain known for its high-performance transaction processing, entered the Telegram gaming space with BIRDS on September 25. This project uniquely combined memecoin elements with GameFi features in its Telegram mini-app.

The impact on Sui’s network metrics has been remarkable. Footprint Analytics data shows that by November 12, BIRDS had accumulated 751,267 unique wallet users and generated 17.7 million transactions since its launch. The game’s influence on Sui’s ecosystem has grown steadily, with BIRDS’ share of Sui’s daily active users increasing from 9.1% to 34.0%, while its share of total transactions rose from 4.3% to 13.5%.

Source: BIRDS DAU

Most notably, while other Telegram-based games typically show declining trends after launch, BIRDS has maintained an upward trajectory. The game’s Telegram mini-app has sustained a robust monthly active user base of 6.2 million. With Sui’s average daily active users reaching 243,520 in November, there remains significant potential to convert more of BIRDS’ Telegram user base into on-chain participants.

Matchain

Matchain, a decentralized AI blockchain focusing on data and identity sovereignty, has perhaps demonstrated the most dramatic impact of Telegram gaming integration since its mainnet launch in August 2024.

The network’s transformation has been remarkable. From a modest beginning of just 78 daily active users in September, Matchain’s gaming ecosystem, driven by Telegram-based games like LOL, Jumper, and Digiverse, catapulted to an average of 549.9K daily active users in October. This growth was matched by a surge in daily transactions, which rose from 127 to 564.7K during the same period.

The platform reached its peak during October 9–13, when daily active users averaged 2.0 million, culminating in an extraordinary high of 3.3 million users on October 12. While these numbers inevitably declined from these peak levels, they stabilized at a significant 614,800 users in late October. By November 12, the network had shown renewed growth, reaching 768,800 daily active users.

Source: Web3 Game Data on Matchain

Matchain’s trajectory offers perhaps the clearest illustration of Telegram gaming’s potential to drive blockchain adoption — moving from negligible activity to sustained hundreds of thousands of daily users within just two months. However, the sharp peak and subsequent stabilization also highlight the challenges of maintaining momentum after initial user acquisition.

Understanding the Impact and Future Potential

The integration of Telegram gaming into blockchain networks has demonstrated remarkable efficiency in user acquisition. With acquisition costs dropping below $0.1 per user — compared to $10+ for traditional Web3 channels and up to $40 for centralized exchanges — this strategy has proven highly cost-effective. Moreover, these users often come pre-exposed to crypto concepts, making them more readily convertible to Web3 participants.

However, the sustainability of this approach faces several challenges. Current user demographics reflect Telegram’s strong presence in Eastern Europe, Africa, South Asia, and other emerging markets. While initial user numbers are impressive, retention rates typically show sharp declines after launch periods. The presence of guilds and potential bot activity requires careful monitoring to ensure both genuine user engagement and economic sustainability.

Looking Forward

As the window of opportunity for early adoption narrows, blockchain networks must act strategically to maximize the potential of Telegram integration. A strategic combination of viral marketing tools, growth mechanisms, and data analytics for user behavior tracking can help networks optimize their acquisition funnels and retention strategies. The key to long-term success will likely lie in building engaging experiences that convert initial user interest into sustained participation.

The Telegram gaming phenomenon represents not just a temporary trend but a potential paradigm shift in how blockchain networks approach user acquisition. Those who can effectively address retention challenges while maintaining the cost-effective benefits of this channel may find themselves well-positioned for the next phase of Web3 adoption.

About Footprint Analytics