Web3 Gaming in March 2024: Market Trends and Investment Insights
#Monthly Reports
2024-04-03
In March 2024, with Bitcoin hitting new records and overcoming a mid-month dip, the rest of the crypto market also seemed poised for a favorable shift in the economy. Game Developer Conference 2024 was another critical factor, contributing to a 24.1% increase in blockchain game tokens’ market cap and a 17.5% increase in daily active users. Industry giants and public chains are investing in nurturing the Web3 gaming ecosystem, and we shall see what these strategic efforts look like.
Data for this report was obtained from Footprint's GameFi research page. This easy-to-use dashboard, updated in real-time, contains the most vital stats and metrics to understand the Web3 Game industry. Click here to find all the latest about prices, projects, funding rounds, and more.
Monthly Market Review
In March 2024, Bitcoin fluctuated between “breakthroughs” and “volatility.” Kicking off at $61,213, it quickly revisited its prior peak of $69,000, then soared to a new all-time high of $73,068 by March 14th. Despite a 15.1% mid-month drawdown, dropping to $62,047, it rallied to close at $69,656, up 13.8% for the month. Ether rise was more consistent, dawning at $3,344 and closing at $3,648, a gain of 9.1%.
Source: BTC Price & ETH Price - Footprint Analytics
March's crypto market thrived, largely due to expectations that interest rates would drop, despite a span economy. This outlook raised concerns about inflation, making assets like Bitcoin and gold more attractive. Bitcoin's price changes were closely tied to the performance of US-listed spot Bitcoin ETFs. The close mid-month drawdown resulted from sluggish spot Bitcoin ETF inflows and traditional traders who had reduced leverage. However, excitement for Bitcoin's halving in April kept its momentum alive.
Ether saw a steady increase, even as it lagged behind Bitcoin, as the approval of a US spot ETF appeared less probable. Dencun Upgrade, a significant network upgrade on March 13 aimed to cut Ethereum transaction costs, boosting activity within its ecosystem.
The AI sector grabbed headlines in March, with Nvidia unveiling the Blackwell GPU and GB200 Superchip at GTC 2024, igniting both US and global stock markets and generating buzz in the crypto market.
Overall Web3 Game Market
Throughout the month, the market cap of blockchain game tokens surged by 24.1%, reaching an impressive $24.1 billion. This growth was not just due to the booming crypto market, the Game Developer Conference 2024 (GDC 2024) also played a crucial role. It sparked further developer activity in Web3 gaming and boosted the interest in gaming tokens.
Game Developer Conference
Fueled by both market dynamics and significant industry events, March also witnessed a continued uptick in average daily active users (wallets), reaching 2.7 million, 17.5% up from February.
Source: Blockchain Game Daily Active Users - Footprint Analytics
However, despite a rise in trading volume since Q3 2023, it has yet to reach the peak observed in Q2 2022.
Web3 Game Chains
In March, gamer rankings highlighted Ronin, Polygon, and BNB Chain as the top platforms in active gamer count, with market shares of 35.4%, 20.9%, and 10.8%, respectively. Notably, Ronin and Polygon increased their leads, with their shares rising by 6.3% and 7.8% over February's figures.
Source: Active Gamers Shared by Chain- Footprint Analytics
Meanwhile, Ethereum, Ronin, and BNB Chain dominated trading volume rankings. In March, Ronin outpaced BNB Chain, with a trading volume of $81.7 million, 35.1% up from February, whereas BNB Chain experienced a 13% decline. Ronin's market share is expanding impressively with fewer than 10 games. As Ronin adds more games, its growth potential is expected to increase significantly.
Source: Hot Games on Ronin - Footprint Analytics
In the competitive race among blockchain networks, public chains are ramping up their investments to cultivate the Web3 gaming ecosystem. The Arbitrum Foundation announced a plan to distribute 200 million ARB over two years to support gaming projects on its blockchain. Of this, 160 million ARB will go to game publishers and builders, with the remaining 40 million ARB set aside for infrastructure enhancements, subject to approval by the Arbitrum DAO.
Similarly, the Starknet Foundation is establishing a gaming committee tasked with propelling Starknet's gaming ecosystem forward. It will distribute 50 million STRK tokens for committee-endorsed projects, focusing on incentivizing game development and player engagement on the Starknet network.
Immutable and King River Capital, with support from Polygon Labs, have launched a $100 million "Inevitable Games Fund" (IGF). This initiative will leverage Immutable and Polygon Labs' insights to scout investment prospects, with King River overseeing the investment execution in game studios and Web3 infrastructure entities.
Web3 Games Overview
In March, the number of active blockchain games remained steady at 2,879. With no significant changes observed, the market is in anticipation of groundbreaking developments that could substantially boost user engagement.
Source: Monthly Active Blockchain Games - Footprint Analytics
Following this, the question arises: Could Notcoin be the game changer the market awaits? This simple clicker game, hosted within the Telegram messaging app, has already attracted over 35 million players in the past few months. To earn in-game coins, players simply engage with the Notcoin bot on Telegram, invite friends, and start playing. But what drives 35 million users to participate in seemingly simple coin tapping? The lure is an upcoming airdrop. In April, Notcoin plans to migrate its trillions of in-game coins to the blockchain using The Open Network (TON), sparking significant interest.
Several games and platforms shone in March. Gala Games' utility token, $GALA, soared by 69.6%. Gala is building a vast platform of AAA-quality games that aim to give players unprecedented freedom, control, and rewards.
On another front, Illuvium, an Ethereum-based open-world fantasy battle game, closed a $12 million Series A funding round. Dubbed the first AAA game on Ethereum, Illuvium stands out with its fully 3D environment, distinguishing it from other blockchain games. Its $ILV token value rose by 18.2% in March.
Illuvium
Game Investment and Funding
In March, the Web3 gaming sector experienced a significant surge in investment, with $151 million raised, an 80.6% leap from February's figures, across 26 funding rounds. This substantial growth in capital injection underscores the sector's sustained appeal.
Web3 Gaming Industry Funding Rounds In March 2024 (Source: crypto-fundraising.info）
Public chains are strategically investing in game projects to carve out a competitive edge and fuel their own expansion. Solana stands out, with investments from Solana Ventures into Parallel and the Solana Foundation into Elixir Games. Parallel, with a notable $35 million, clinched March's largest funding round.
Meanwhile, Avalanche made significant strides, with the Avalanche Foundation backing two projects: BloodLoop and Crystals of Naramunz. Moreover, Blizzard, the Avalanche Ecosystem Fund, contributed to Gunzilla Games, which garnered the second-highest funding of $30 million in March.
Gaming giant Square Enix not only develops its blockchain offerings but also invests in promising Web3 companies. In March, it channeled funds into gaming platforms Elixir Games and HyperPlay. And Square Enix will bring its Symbiogenesis game to HyperPlay.
Traditional crypto funds are also notably active. a16z Crypto backed MyPrize and MadWorld, while Animoca Brands supported Illuvium, MetaCene, and gaming infrastructure Param Labs.
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