2022 GameFi Annual Report The potential of Web3 games needs to be further explored
2022 GameFi Annual Report The potential of Web3 games needs to be further explored
Recently, the second largest overseas gaming platform Epic Introducing a growing list of Web3 programming languages, including Solidity . Rust The open source product will be open to all programmers, artists and designers to help the industry grow, and the platform claims to be very bullish on the future of the Web3 gaming market.
In terms of data, according to Accenture and BitKraft's survey data, the gaming marketMarket capitalization exceeds $300 billion and is expected to grow at an annual rate of 12% from 2028. It is undeniable that games, as one of the most important forms of entertainment for people in the digital age, are creating great output. And Web3 games are run and maintained by the chain, relying neither on fixed servers nor on fixed teams to operate them.Connecting the game to the player makes the game more creative and diverse.
Since the last bull market was born, a series of niche tracks have emerged in the Web3 game, including but not limited to.Web3 Game+Social, Web3 Game+Finance, Web3 Game+EducationAmong them, GameFi related projects combined with finance are the fastest growing and have become the most representative branch of Web3 games.
GameFi is a combination of gaming and finance, where gamers can not only have fun while playing games, but also earn revenue from it. The development team has cleverly financialized the game, bringing more users to the Web3 space.
With a crypto bear market on the horizon, how is the GameFi circuit faring in the Web3? What are the current pioneering innovations?The following article will start from 2022 GameFi track data, and hope to give you some reference about the game track.
GameFi Annual Development Overview
Data is a reflection of the development of a particular trackThe most intuitive and effectiveof the way. The following will be a comprehensive use of multi-dimensional statistics from various data analysis platforms to introduce this year GameFi's annual development.
In terms of GameFi market capitalization, according to the latest data from CoinMarketCapGameFi currently has a market cap of over $4 billion and daily trading volume of approximately $300 million.Compared to six months ago, its market cap has shrunk by 50%. It is easy to see that GameFi is on a clear downward trend this year, especially as projects built on hype and unsustainable profit models are facing an irreversible collapse.
In addition to the elimination of some speculative projects from the GameFi circuit by market winners and losers, the downside of GameFi is closely related to the downturn in the overall crypto market, with GameFi market capitalization showing a strong correlation to the broader market index BTC this year via Footprint Analytics data.
Accordingly, the market's interest in GameFi is also decreasing. If we look at the heat of the term in Google Trends in the past two years, if we take the short-term heat peak index of 100 in June this year, the heat index of the term has remained around 15 for most of 2022.This year, GameFi has not been discussed much overall.
At present, GameFi active users are mainly concentrated in Splinterlands and Alien Worlds and these two projects, the distribution of active game users is relatively scattered, which also means that there is no project in this track can really achieve "one ride", and the competition is not very fierce.Still in the blue ocean exploration period, the development space and resources are relatively sufficient.
On the bright side, this shows that GameFi's value is still recognized by some investors regardless of the bulls and bears, but it also shows that GameFi has not made any fundamental qualitative changes during the year and has failed to achieve The breakthrough of development.
In terms of total funding, GameFi has been deeply affected by the bear market. 2021 total funding amounted to $4.8 billion, and as of today, theThis year's funding was only $2 billion, down $58% year-over-year.In addition, according to Footprint's survey of 281 GameFi projects, only half of the projects have completed their seed rounds, and the number of active projects is declining, with most projects not looking good.
From P2E to P2O.
Web3 game paradigm innovation
In 2021, Axie Infinity "hit it out of the park" with its P2E model, which officials say has brought in $1.3 billion in revenue in a single year.
Earn while you play P2E
Play-to-Earn (P2E) stands for "Play and Earn", an innovative game model that is at the heart of the GameFi programGamiFi is also a powerful tool to attract players. The model is very different from the traditional pay-to-play model of video games, as GamiFi players can typically earn in-game rewards by completing missions, playing against other players, and upgrading through levels, as well as transferring game assets for trading on trading platforms or the NFT marketplace.
And today, judging by the average number of active users aboveAxie Infinity no longer ranks in the top three.
In fact, the "rise" and "fall" of Axie Infinity are inextricably linked to the P2E model. The innovative earning mechanism accumulated a large number of users in a short period of time, but at the same time, it failed to convert revenue seekers into long-term players in a sustainable game economy because the incentive mechanism could not subsidize growth forever, and the lack of playability made it quickly abandoned by players. This also illustrates that an unsustainable game model is not conducive to the development of the project in the long run.
Besides the P2E model, what kind of development paradigm is needed for the next generation of Web3 games?
Own game P2O
Looking back at the past 50 years of gaming, we can see a shift in the game business model: pay to play, free to play, money making games, what's next? Recently Arthur0x, founder of DeFiance Capital, Web3 & Crypto Investor, proposed"Play-to-Own", "play by yourself" is the next generation of Web3 business paradigm.
P2O is "a blockchain-enabled game developed in the spirit of Web3 - that is, to incentivize consistency and true stakeholder ownership. Players' games and contributions gain game ownership in the form of virtual assets or in-game assets."
Games are not work, and we should not overemphasize making money through them. And P2O will focus on fun gameplay, a sustainable economy, and promote awareness of in-game assets and IP ownershipArthur0x also compared Web2 games, P2E games and P2O games. In this regard, Arthur0x also compared Web2 games, P2E games and P2O games, as shown in the following figure.
As you can see, based on the playability of the game, players will earn an order of magnitude more in P2O than in Web2 games. With sound economic management and deep game content, P2O will be more sustainable than P2E, generating revenue for developers and the community over a longer period of time.
3 billion game users in the value pool
CurrentlyThere are approximately 3 billion online gamers worldwide, with Asia accounting for 55% of that market.By 2024, the mobile gaming industry is expected to generate $116 billion in revenue from gamers spending online, but with only an estimated 5 million in the Web3 world, a large number of users have yet to venture into Web3 gaming.
The Web3 game market is worth further exploration by developers. At the same time, this year many Web2 majors (Funplus, Photon Games, Ubisoft, etc.) have also started to slowly lay out and explore Web3 games, which also hints at the blue ocean of Web3 development to be explored.
Poca Ecology will also support the development of Web3 game projects. Among themSubstrate development framework can meet the personalized development needs of different Web3 game projects; the advantages of transaction fees and network throughput in the Poca ecology can meet the joining of a large number of players; in addition, Poca XCM cross-chain interoperability can help break the blockchain silo effect, which also helps the long-term development of game projects.
In addition to the overall industry downturn, we should also reflect on whether the current Web3 game development model is the "right" one. Can we make a breakthrough and change in it? Bear market accumulation is not a "dead end", we may be able to properly stop and think more, such as P2O general paradigm change, although still in the concept period, but also worth our attention.
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