DappRadar

Alien

<ul> 
 <li><i>Blockchain gaming revenues were a fraction of those of the traditional video gaming industry.</i></li> 
 <li><i>With 1.16 million unique active users as of this writing, the sector captured 33% of the dApp market.</i></li> 
</ul> 
<p>On-chain gaming has become one of the fastest-growing industry verticals in the blockchain sector, garnering significant interest from enthusiasts over the years.</p> 
<p>The prospect of decentralized ownership of in-game assets and getting the ability to trade them outside the gaming world added a new dimension to one of the most exciting tech industries at the moment.</p> 
<h4><strong>On-chain gaming set to expand</strong></h4> 
<p>As per a recently-published <a href="https://public.bnbstatic.com/static/files/research/a-primer-on-on-chain-gaming.pdf" target="_blank" rel="noopener nofollow external noreferrer" data-wpel-link="external">report</a> by Binance Research, the blockchain gaming market witnessed revenues of $7.8 billion in 2023.</p> 
<p>The industry was predicted to increase at a compound annual growth rate (CAGR) of 70.3% to more than $22 billion by 2025.</p> 
<div id="attachment_358577" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Revenue-gaming.jpg" data-wpel-link="internal"><img aria-describedby="caption-attachment-358577" decoding="async" class="size-full wp-image-358577" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Revenue-gaming.jpg" alt="" width="630" height="354" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Revenue-gaming.jpg 630w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Revenue-gaming-300x169.jpg 300w" sizes="(max-width: 630px) 100vw, 630px"></a>
 <p id="caption-attachment-358577" class="wp-caption-text">Source: Binance Research</p>
</div> 
<p>While these numbers were indeed impressive, one mustn’t lose sight of the fact that the industry was still very much in its nascent stage.</p> 
<p>As seen in the graph above, the revenues from blockchain gaming were a fraction of those of the traditional video gaming industry.</p> 
<p>To understand the difference, for every 1000 players on Minecraft, the best selling-video game of all time, there was just 1 player active on Alien Worlds, one of the most popular blockchain games.</p> 
<p>However, on-chain game developers were betting on relative benefits over traditional counterparts to drive adoption.</p> 
<h4><strong>Advantages over Web2 gaming</strong></h4> 
<p>As highlighted in the report, the decentralized nature would ensure that in-game assets continue to exist even if the game publisher goes bankrupt. This was in contrast to Web2 games, where the failure of the centralized entity meant the end of the game as a whole.</p> 
<p>Moreover, the interoperability feature would allow users to transfer the assets they earned in one game and use it in the other, or even outside the gaming world. A traditional game setup restricts users in a controlled environment.</p> 
<h4><strong>Current state of the market</strong></h4> 
<p>Blockchain gaming continued to dominate the decentralized app (dApp) landscape, as per AMBCrypto’s examination of DappRadar data. With 1.16 million unique active users as of this writing, the sector captured 33% of the dApp market.</p> 
<div id="attachment_358598" style="width: 100%" class="wp-caption aligncenter">
 <a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Games.png" data-wpel-link="internal"><img aria-describedby="caption-attachment-358598" decoding="async" class="size-full wp-image-358598" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Games.png" alt="" width="1132" height="650" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Games.png 1132w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Games-300x172.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Games-1024x588.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Games-768x441.png 768w" sizes="(max-width: 1132px) 100vw, 1132px"></a>
 <p id="caption-attachment-358598" class="wp-caption-text">Source: DappRadar</p>
</div> 
<p>Furthermore, at about 10.33 million transactions, it was the busiest dApp vertical, edging past even the decentralized finance category.</p> 
<h4><strong>Failure rate on the higher side</strong></h4> 
<p>While these were encouraging signs, the ground reality was a bitter pill to swallow. AMBCrypto <a href="https://eng.ambcrypto.com/the-future-of-web3-gaming-market-looks-dim-heres-why/" target="_blank" rel="noopener" data-wpel-link="internal">reported</a> recently how three out of every four on-chain game in the last five years failed. Even in 2023, the failure rate was 70%.</p> 
<p>&nbsp;</p>

Web3 gaming to become a $22B industry by 2025: Study

AMBCrypto

Other articles published on Dec 13, 2023

Coinbase launches spot crypto trading on international exchange

Loopring Crypto: A Hybrid Solution for Decentralized Finance

Top 5 Solana Blockchain Airdrops: An Opportunity Not To Miss?

S&P casts doubt on Tether's stability, USDT reserves

Crypto Assets Triumph As Commodities, But Face Regulatory “Turf War,” Says US CFTC Chair

Bitcoin Price Prediction as US Core Inflation Rate Data is Announced – Time to Buy?

Join our free newsletter for daily crypto updates!