<h3 id=""></h3><p>Nov 2022, Daniel</p><p>Data Source: <a href="https://www.footprint.network/@T9nEB1hBdE/November-2022-GameFi-Report-ENG" rel="noopener noreferrer nofollow">November 2022 GameFi Report (ENG)</a></p><p>Despite one of the worst possible events happening in November — the complete collapse of the world’s largest crypto company — the GameFi market did not fall significantly compared to October.</p><p>This may indicate that the market, barring a systemic collapse, has reached a limit of its downside risk.</p><p>Nevertheless, the trend of decreasing investment in the space continued, with the amount of investment and the number of funds reaching a historic low.</p><p>Amid the downturn, Polygon has performed relatively well as a gaming chain, with several large titles gaining users in November.</p><p>Overall, November was a relatively uneventful month for GameFi, especially considering what happened in the CEX sector.</p><h3 id="crypto-macrooverview">Crypto Macro&nbsp;Overview</h3><ul><li>At the end of November, the F&amp;G index actually closed higher than at the end of October.</li><li>The FTX collapse stopped the F&amp;G index recovery, causing it to fall from 40 to 20.</li><li>Hitting $1,091 on Nov. 9th, Ethereum was close to dropping beneath the thousand-dollar mark but did not.</li></ul><p><img src="https://cdn-images-1.medium.com/max/1000/0*0lq2smbSDtLivqVD"><em><a href="https://www.footprint.network/chart/ETH-Price-VS-FGI-%28November-Report%29-fp-34105" rel="noopener noreferrer nofollow">ETH Price VS FGI (November Report)</a></em></p><p>The FTX collapse did not cause the price of ETH to drop below its June lows, despite this event being arguably more significant than the Terra Luna collapse that happened.</p><p>Interestingly, BTC did drop below its June lows, which is unexpected because altcoins would previously bear the greater brunt of negative market sentiment and volatility.</p><p>One possible explanation is that this seemingly minor price action news is the first evidence of something huge: the tokenomic effects of the Merge coming to fruition. For the first time, Ethereum is less volatile than BTC.</p><h3 id="gamefi-financing-investment">GameFi Financing &amp; Investment</h3><ul><li>GameFi funding continued to fall and dropped to an ATL of $60 million in November, a decline of 69% MoM.</li><li>There were just 9 rounds in the GameFi industry, led by Roboto Games and Thirdverse.</li><li>Thirdverse is a Tokyo-based development studio focusing on Web3 and VR games. It received a $15 million round led by MZ Web3 Fund.</li><li>A16z was the lead investor in Roboto Games’ $15 million Series A. The traditional gaming studio hopes to expand into Web3 and blockchain.</li></ul><p><img src="https://cdn-images-1.medium.com/max/1000/0*Mw-u1Cmbpl6UfHdl"><em><a href="https://www.footprint.network/chart/Investment-by-Category-%28Nov.-GameFi-Report%29-fp-34128" rel="noopener noreferrer nofollow">Investment by Category (Nov. GameFi&nbsp;Report)</a></em></p><p>Funding for GameFi has dried up a fraction of what it used to be. Funds invested in a handful of projects, mostly game developers and studios. Most of those rounds were for established developers with a record of publishing successful projects in Web3 or Web2.</p><h3 id="gamefi-marketoverview">GameFi Market&nbsp;Overview</h3><ul><li>The total volume in GameFi dropped from October, declining from $260 million to $100 million.</li><li>Transactions per user also declined sharply at the end of November, but are still higher than 6 months ago.</li><li>In October, Axie Infinity’s unlocking event caused an unusually high amount of traffic on Ronin. In November, the breakdown between chains went back to a more regular distribution.</li></ul><p><img src="https://cdn-images-1.medium.com/max/1000/0*ZW9aH8yWL4OHxBCb"><em><a href="https://www.footprint.network/chart/November-Report%E2%80%94GameFi-Monthly-Volume-fp-34114" rel="noopener noreferrer nofollow">November Report — GameFi Monthly&nbsp;Volume</a></em></p><p>The total volume in GameFi more than halved. A large part of this was unusually high volume in October driven by the Axie Infinity unlocking event — with the market now coming back to its normal state.</p><p><img src="https://cdn-images-1.medium.com/max/1000/0*8y7Vj06PtxO1nbVQ"><em><a href="https://www.footprint.network/chart/November-Report%E2%80%94GameFi-Volume-and-Transactions-per-User-fp-34115" rel="noopener noreferrer nofollow">November Report — GameFi Volume and Transactions Per&nbsp;User</a></em></p><h3 id="gamefi-usersoverview">GameFi Users&nbsp;Overview</h3><ul><li>MAU declined from 2.2 million percent in October to 2 million, while new users declined by just over a hundred thousand.</li><li>Polygon saw the highest amount of new users thanks to several titles rising in popularity, namely Benji Bananas and Planet IX.</li></ul><p><img src="https://cdn-images-1.medium.com/max/1000/0*BbF-Tg8LfmQStKf_"><em><a href="https://www.footprint.network/chart/New-Users-by-Chain-%25-November-fp-34125" rel="noopener noreferrer nofollow">New Users by Chain % — November</a></em></p><p>Polygon has established itself as a potential winner in the GameFi space if it can continue attracting solid projects. Some notable Polygon-based titles that have grown quickly in the past few months are Benji Bananas, Arc8 by GAMEE, and Planet IX.</p><p><img src="https://cdn-images-1.medium.com/max/1000/0*u7MNLAOgfrAWVwjn"><em><a href="https://www.footprint.network/chart/New-Users-by-Month-%28November-Report%29-fp-34121" rel="noopener noreferrer nofollow">New Users by Month (November Report)</a></em></p><h3 id="gamefi-projectsoverview">GameFi Projects&nbsp;Overview</h3><ul><li>The sharp increase in volume on Polygon was driven by Benji Bananas gaining users and volume. The number of users grew to over 80K.</li><li>Planet IX, a space-themed strategy game, more than tripled its users in November. Note that the price of the game’s token, IXT, did not increase.</li></ul><p><img src="https://cdn-images-1.medium.com/max/1000/0*91D0Jv-ErXYiFvK1"><em><a href="https://www.footprint.network/chart/Benji-Bananas-Users-fp-34134" rel="noopener noreferrer nofollow">Benji Bananas&nbsp;Users</a></em></p><p>Benji Bananas has significant growth in users in November, which was reflected in the price of its token. On the other hand, Planet IX also saw a surge in players, but its token, IXT, continued to decline, indicating a less sustainable project.</p>

November 2022 GameFi Report

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