Investments in blockchain-based games have spiraled to new highs this year, according to a report by DappRadar.
The report reveals that the blockchain niche got around $1 billion in funding last month, showing a level of increasing interest in the space.
The interest in the GameFi sector isn’t just reflected in the level of investments into the space. The report noted that over 50% of blockchain-related activities this year could be tied to it.
This is a continuation of the high performance it recorded towards the end of last year, when it was the most dominant dApp sector, accounting for 45% of blockchain activity during the said period.
“Considering the record amount of capital invested in blockchain games and infrastructure in the last 13 months, the interest for games and the metaverse is undeniable.”
The DappRadar report noted that the push towards more digital communication, interaction, and virtual work environments, plus the possibility of earning through these games, had played a part in its growth.
The top performing GameFi Protocols
With the sector booming, several key players are gradually emerging, and one of them is Harmony’s DeFi Kingdom (DFK).
Per available information, DFK generated over $1.5 billion in January, which is 234% more than its more illustrious rival, Axie Infinity. Aside from that, the DeFi protocol alone accounted for 38% of the transaction volume of blockchain games.
Polygon is also cementing itself as a leading gaming platform. The layer two network has seen increased adoption, with its daily unique active wallets (UAW) rising by 76% to over 209,000 per day on average.
Gaming protocols like Pegaxy, Aavegotchi, Fear, Phantom Galaxies, REVV Racing, Sunflower Farmers, Crazy Defense Heroes, and several others have found a home on the network.
What makes GameFi growth more impressive is the fact that it was able to achieve this level of development despite the poor performance of the wider crypto market in January.
GameFi is blooming despite crypto market crash
While the value of flagship digital assets like Bitcoin and Ethereum plummeted to new lows, DappRadar reported that GameFi protocols are not only retaining their users but are also growing their player base.
A cursory look at the data will show that Splinterlands is the most played blockchain game based on on-chain data. The game averaged 312,000 daily UAW and increased its player base by 4.5%.
However, if off-chain activity is considered, Axie Infinity remains a force to reckon with as it has around 2.8 million daily active users. At the same time, its UAW stands at around 100,000 per day. The game just recently also recorded over $4 billion in NFT sales.
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