The prolonged bear season has definitely affected DApps in terms of TVL and cryptocurrencies’ price levels. The overall market capitalisation went below $1 trillion for the first time since 2020. However, one sector that is still standing strong is the crypto gaming. In May 2022, blockchain games had average daily UAW (Unique Active Wallets) close to 1.15Mn, decreasing only 5% from the previous month. A report published by DappRadar suggests that the common theme found in the GameFi projects was the underlying utility provided by the gaming aspect itself.
P2E crypto games driving GameFi craze
- Splinterlands attracted 350,000 daily UAW in May and doesn’t seem to really acknowledge the bear market.
- Illuvium, alongside also generated around $72Mn through land sales. The blockchain game sold around 20,000 land plots generating 4,018 ETH which was valued around $72 million at the time of sale.
- Gala games is also developing its blockchain gaming empire with plans in the roadmap including Project GYRI, the native blockchain of Gala Games.
- Stepn with its trending move-to-earn economy have registered atleast 2 million monthly users according to TechCrunch.
VCs Still Remain Bullish & Invested in Crypto Gaming
Another point to consider amid the bear market conditions is the constant capital inflow from VCs and investors for crypto gaming projects. In May 2022, A16Z and Dapper Labs led gaming and metaverse investments with $1.3Bn in investments. On YTD basis, the sector has received around $4.9Bn wherein Q1 2022 had received $2.66Bn
According to the report by DappRadar, VCs and investors are preferring P2E crypto gaming infrastructure projects. These projects are mainly related to blockchain networks focused on hosting gaming applications. Gaming and metaverse related projects comes second while guild or incubators are third on the list.
Conclusion
The only survivor in the ongoing bear season is proving to be blockchain gaming and related dapps. It is expected that these applications can take over the traditional gaming industry in a democratize manner wherein there will be no pre-participatory requirements to buy NFTs, tokens, and gaming aspect resulting in transition from play-to-earn to play-and-earn.
