blockchain gaming revenue rose in May as investment soar to $476 million
A DappRadar report reveals that revenue in blockchain gaming rose in May. Despite a slight slip in dominance, the industry witnessed a 6% month-to-month increase in unique active wallets (UAW). Gaming continued to command a significant share of on-chain activity.
The rise of new gaming chains, such as BNB Chain and Polygon, added competition to the landscape. Additionally, the emergence of social dapps and the success of web3 games on iOS platforms are reshaping the gaming industry.
Illuvium’s Overworld and Illuvium Zero have ushered in a new wave of high-quality blockchain games, and investments in the sector reached $476 million in May.
State of blockchain gaming
Blockchain gaming has established itself as a significant player in the crypto industry, despite experiencing a slight dip in dominance in May.
The industry witnessed its lowest number of Unique Active Wallets (UAW) since July 2021, with 711,913 daily UAW. However, the sector showcased dynamism and resilience, with a 6% month-to-month increase in gaming wallets, indicating continued growth.
The blockchain gaming sector boasted an impressive 77% dominance over the transactions of the entire decentralized application (dapp) industry.
With over 550 million transactions processed on the WAX blockchain alone, the gaming industry again demonstrated its dominance in the web3 space in May.
Competition in the web3 gaming landscape intensified with the emergence of BNB Chain and Polygon. BNB Chain secured the second-largest gaming chain spot with over 79,015 daily UAW, closely followed by Polygon with 76,859 daily UAW. The Hive gaming chain and EOS also ranked high.
New blockchains join the gaming movement
The web3 gaming sector witnessed the entry of new blockchains, namely Sui and Intella X. Sui, a product of Mysten Labs, showcased promising growth by announcing 11 out of 14 live games added in May. Intella X, based on Polygon, also gained traction by announcing nine games.
Alien Worlds maintained its dominance as the most played on-chain game, with over 410,000 monthly unique active wallets (mUAW). Hippo Dash made an impressive debut in the parkour game, securing the second spot with over 150,000 UAW.
Splinterlands marked its 5th anniversary and fell slightly to the third position. Flow games, including Carrom Blitz and Trickshot Blitz, returned to the top 10 rankings. SuperWalk, a move-to-earn (M2E) game on Klaytn, showcased a significant increase in UAW.
With recent funding of $10 million from Framework Ventures, Illuvium launched the second round of the Overworld private beta. The update introduced new zones, Illuvials, and exciting means of navigation.
The Illuvium Overworld expanded the game world and introduced movement capabilities like gliding and flying. Illuvium Zero started season one of its Alpha test, offering play-to-earn (P2E) opportunities and the chance to mint blueprints.
The investment surge highlights the growing confidence and interest in blockchain gaming and metaverse projects. Investors recognize the immense potential of this sector and are keen to capitalize on the opportunities it presents.
The influx of funding will fuel innovation, development, and expansion in the web3 gaming space, ultimately leading to more immersive and engaging experiences for players.
Several high-profile funding rounds took place in May, further cementing the importance of blockchain gaming in the broader crypto ecosystem. Illuvium’s $10 million funding will enable the project to continue its ambitious development roadmap and bring its gameplay to a broader audience.
Another notable funding round was conducted by Dapper Labs, the creator of the highly successful NBA Top Shot. The company raised $305 million in a funding round led by Coatue Management, with participation from notable investors such as Andreessen Horowitz and GV (formerly Google Ventures). The substantial investment in Dapper Labs signifies the continued interest in blockchain-based collectibles and the potential for mainstream adoption.
Metaverse projects attract capital
The metaverse sector also saw a significant infusion of capital, with notable investments in projects such as Decentraland and The Sandbox.
Decentraland, a decentralized virtual world where users can create, explore, and monetize their own experiences, raised $45 million in a funding round led by Blockchain.com Ventures.
The Sandbox, a user-generated content platform and gaming virtual world, secured $93 million in a private token sale via investments from top companies, including SoftBank and Samsung Next.
The substantial investments in blockchain gaming and metaverse projects underscore the recognition of the transformative power of this burgeoning technology.
The metaverse, in particular, has captured the imagination of investors and industry participants alike, as it represents a paradigm shift in how we interact with digital environments and engage with each other. The metaverse promises to create immersive, interconnected worlds where users can socialize, work, and play, blurring the lines between physical and digital reality.
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