GameFi has also seen a healthy spike since the start of the U.S. presidential election, however it’s had a sluggish week as the big dogs.
Introduction
Bitcoin has finally broken its all-time high (ATH) and resides at around $75,000 at the time of writing. GameFi has also seen a healthy spike since the start of the U.S. presidential election, however it’s had a sluggish week as the big dogs like Bitcoin, Ethereum and Solana break out following Donald Trump’s victory.
Since the latter two chains provide gaming ecosystems, it’s not a bad thing. What is bad, however, is that the Securities and Exchange Commission (SEC) continues to target crypto projects, and this week it’s poor Immutable’s turn.
The good news is that the crypto gaming sector is busier than ever, with shiny big-budget crypto games starting to release, more token airdrops, and new trends emerging.
The rise of ‘fully on-chain’ games, which run all game functions on the blockchain, that focus on decentralization and user ownership has also become a hot topic. Examples of these experimental new games include Realms World, Sky Strife and Cellula, which introduce unique gameplay elements like player-built economies and survival adventures.
Market Overview
The GameFi market cap is slightly down over the last seven days, dropping from almost $19 billion to just over $18 billion.
The market sentiment has suddenly changed to very positive after the U.S. presidential election, and one can see it reflected in the overall market.
Source: CMC
Despite some challenges, the future of GameFi remains positive, with continued innovation expected as developers experiment with new gameplay mechanics and build robust infrastructure.
Top Coin Movements
Mirroring the overall market drawdown before the election, most top 20 crypto gaming coins are down in the last seven days. Only two GameFi coins have broken just above even.
Source: CMC
Top Gainers:
- SuperVerse (SUPER): +1.62%
- MultiversX (EGLD): +1.09%
Top Decliners:
- Immutable (IMX): -14.61%
- Ronin (RON): -13.22%
- Baby Doge Coin (BabyDoge): -10.64%
Blockchain Gaming Activity This Week
Investment activity in blockchain gaming remains strong. Venture capital firms like BITKRAFT and A16z are making substantial deals, signaling continued long-term confidence in the sector.
- GombleGames shines with 774.44 UAW in the final week of its EggDrop Launchpool 2, and staking is officially open.
- SERAPH: In The Darkness rises 16.07% and is the world's first high-quality Web3 dark ARPG loot game.
- LOL surges by 11.58% as their current round of LOL NFTs is sold out.
- BoomLand performs well while going up 11.07% with $1 million in BOOM rewards up for grabs.
- Alien Worlds, one of the long-standing favorites, showed steady growth of 7.15%.
Key Trends
Emerging Business Models: While play-to-earn (P2E) remains a popular model, new models like play-and-earn (P&E), play-to-own (P20), and free-to-own (F2O) are emerging.
- Mainstream Adoption: Companies like Ubisoft are making significant moves toward integrating blockchain technology, signaling broader acceptance of Web3 gaming. This trend is also supported by collaborations with tech giants like Apple.
- Blockchain Solutions: Blockchain scalability and interoperability continue to be primary concerns. Many GameFi platforms are looking to layer-2 and layer-3 solutions, like Polygon and ImmutableX, to improve efficiency and reduce transaction costs.
- Market Activity: Games like Axie Infinity, MOBOX, and The Sandbox continue to dominate, though there's been a drop in active wallets and user engagement in recent months. According to a State of GameFi report, the number of active wallets has dropped over 60% from the earlier highs in March 2024
- Regulatory Concerns: As this week’s Immutable Wells Notice shows, the regulatory environment is still developing, with uncertainty surrounding taxation and the legal status of digital assets in gaming.
Latest Blockchain Gaming News
Immutable X receives Wells Notice from SEC
IMX received a Wells Notice from the SEC, suggesting potential legal action related to its IMX token, likely focusing on its 2021 listing and private sales. Immutable criticized the SEC's approach, arguing that it lacks transparency and randomly labels tokens as securities. The company’s IMX token dropped over 13% following the news.
James Ferguson, the CEO of Immutable X and the parent entity's head also received notices, though no legal action has come from the DOJ. Immutable is confident that IMX is not a security and is prepared to defend its stance.
SingularityNET and ASI Launch Proto-AGI in Minecraft
SingularityNET and the ASI Alliance have launched the first self-learning proto-AGI within Minecraft. The new proto-AGI can adapt, navigate and create rules based on real-time experiences, which is different from typical game AI.
AIRIS (Autonomous Intelligent Reinforcement Inferred Symbolism) functions independently of pre-set rules, allowing it to evolve as it faces new challenges.
Nexus Interactive launches Telegram Tap Game
UK studio NXI has launched a new Telegram game, Billionaire’s Path: Build Your Fortune, where players earn virtual dollars through tapping, slot machines and business investments.
There will also be a $500,000 NXI token airdrop campaign ahead of the token’s launch.
They recently raised $2 million in seed funding and their flagship title, Everdawn Champions, was added to the Epic Games Store. The airdrop campaign will run until December 2024, with exact dates yet to be announced.
VanEck Invests in Web 3 Gaming
It’s the second time VanEck's liquid token strategy fund has invested in Web3 games, but this time it’s in Gunzilla Games.
In March, VanEck invested $35 million in Parallel, a Web3 card game where tradable cards are represented on-chain as non-fungible tokens (NFTs),
“We see crypto as a tool to enhance gaming experiences and improve monetization strategies,” Maximo from VanEck said.
What You Can Do Now
- Focus on quality over hype: look out for games that people play for fun rather than just for earning.
- Check for real utility and in-game integration: projects where tokens and NFTs have multiple use cases within the game such as staking, upgrades, and crafting, tend to be more sustainable.
- Evaluate team experience and transparency: teams with a proven track record in gaming or blockchain are more likely to deliver.
- Assess community activity and growth: high player retention and active communities (Discord, Twitter, Reddit) show that a game can attract and keep players.
- Keep an eye on the regulatory landscape: projects that communicate openly about regulatory compliance are generally safer bets.
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