Web3 crypto gaming project tokens registered triple-digit growth on average in January 2023. This lends confidence and support for some new and perhaps undervalued projects in the sector.
Web3 and its innovative applications in the blockchain industry have opened up new opportunities for game developers, players, and investors. Web3 gaming tokens allow game developers to create unique, one-of-a-kind items within their games that players can own, trade, and collect in the form of NFTs or non-fungible tokens.
Developers are using these tokens to create a new avenue for community engagement and monetization within the gaming world, as players can now hold tangible assets that have value beyond just the game itself. Investors can also benefit from web3 gaming tokens by buying and selling NFTs like traditional stocks or commodities. The scarcity of NFTs and the uniqueness of each token can drive demand, increasing the value of the NFTs.
Advantages of Web3 Gaming
One of the main benefits of crypto gaming tokens is that they are more secure than traditional payment methods. Transactions are processed through the blockchain, making them transparent and tamper-proof. This also eliminates the need for players to share their sensitive information with third-party platforms, increasing privacy and security.
One of the primary goals for these assets is to enable seamless cross-platform transactions. Many players want the ability to trade rare and valuable virtual assets across different games and platforms. This would allow for a thriving virtual economy where players can trade items for real-world money.
Crypto gaming tokens can also provide a new source of revenue for game developers. Players can purchase virtual assets using crypto tokens, providing a new revenue stream for game developers. This also can eliminate the need for in-game advertisements, making the gaming experience more enjoyable for players.
Some of the leading names within the cohort are:
This also opens up opportunities for smaller indie game developers who might need help to compete with larger game companies.
A recent report by the cryptocurrency analytics platform Delphi Digital shed more light on this paradigm.
Gaming Tokens Reaped Huge Gains Last Month
The 2023 crypto gaming report highlights several key trends in the industry. The report notes that the growth of non-fungible tokens (NFTs) has been one of the biggest drivers of the crypto gaming market.
Keeping that in mind, gaming tokens with the highest market capitalization have recorded an average price increase of more than 100% in January alone. Notably, the combined average price gains of the top 10 gaming tokens by market cap in January amounted to 102%.
“By January 25th, all of the top 10 gaming tokens by market cap had increased in price by 50% or more, with some even seeing as much as 200% growth from the start of the month,” the report added.
Apecoin (APE), Axie Infinity (AXS), Sandbox (SAND), and Gala (GALA) are among the few that recorded the most significant price increases last month. This is evident in the chart above. Other coins include Enjin (ENJ), ImmutableX (IMX), Magic (MAGIC), Wax, and the Move-to-Earn (M2E) platform Stepn.
GALA pulled ahead of the rest of the pack thanks to several bullish announcements. Meanwhile, SAND experienced a 30% surge following announcing an MoU with the Saudi Arabia Digital Government Authority (DGA).
Web3 Gaming Projects to Watch
Some trending gaming projects continued to build on their January gains, with the majority recording much more impressive results during the first week of February. Their collective average price increased by more than 110%.
One of these is Wemix. The project’s token WEMIX showcased an incredible 300% rally in a month as digital asset markets recovered from their 2022 lows.
According to its website, the platform supports blockchain-based games for over 378,000 gamers and includes at least 20 games at the time of press. Each has tokens on the WEMIX blockchain, and the platform released a fan token system to support the community last month.
In addition, the Ethereum-based gaming project ImmutableX (IMX) soared nearly 150% in the previous month. The continuous adoption of blockchain technology for web3 uses led to a surge in the project’s price explosion. Meanwhile, advancements such as ‘Immutable Passport,’ a non-custodial wallet, added to the ecosystem’s functionality.
Narratives Around Gaming Are Changing
Speaking to BeInCrypto, Alex Connolly, the co-founder and CTO of Immutable X, asserted:
“[Negative perception] regarding web3 gaming is absolutely shifting. For one, blockchain gaming already makes up over 48% of the entire blockchain activity, and blockchain gaming wallets are growing at 8% monthly. Clearly, new players are coming into this space.
He also touched on the topic of funding. Connolly stated, ‘Investors are growing in interest too, and it’s looking like the tumultuous events of 2022 haven’t stopped that. In October and November alone, web3 games raised over $534 million.’
‘Perhaps some VCs are on the sidelines, but most of them are definitely paying attention,’ he concluded.
Closing Thoughts
Overall, mainstream gaming companies’ increasing adoption of blockchain technology is creating a buzz. Triple-A game publishers such as EA, Activision Blizzard, and Rockstar Games are all exploring the use of blockchain for gaming assets, in-game economies, and player authentication.
This trend may continue as more companies leverage blockchain technology’s benefits in the gaming industry. With the growth of NFTs, the rise of DeFi games, the increasing adoption of blockchain technology, and the importance of partnerships and collaborations, the industry is well-positioned to drive innovation and growth in the gaming industry.
It’s still too early to declare winners here, especially considering this sector is in its infancy. Some pitfalls need improvements, such as user experience and concerns regarding industry regulation. This is especially true when comparing the web3 cohort to the web2 gaming giants.
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