đMarket Study
Blockchain, GameFi & NFT Market Study
Following the late 2021 and early 2022 crypto market debacle the ecosystem's growth predictions and retail confidence have been dampened, but believers in blockchain techonolgy and its infinite possibilities remain steadfast in their bet on the future.
Despite the overall downtrend due to macroeconomic situation there are plenty of signs that give us bright light regarding the blockchain, GameFi & NFT market, we have drawn several conclusions after analysing top industry reports from various trusted sources such as Binance, DappRadar, CoinTelegraph and more.
GameFi sector remains the undisputed top 1 category in terms of UAW with 2,19M in Oct 2022 according to Dapps Industry Overview statistics from DappRadar. Dominance on Q3 reaches 48% over other categories.
Statistics from the Binance Half Year Report show how the GameFi sector is yet at an embryonic phase compared to traditional gaming: âgaming market size is estimated to be around US$175B today, and GameFi market cap is less than 4% of that at only US$6.2BNâ (2022).
According to DappRadar X BGA Blockchain Games Report #7 âmobile blockchain gaming could be the next up trend [...] only around 12% of Web3 live games are available to play on mobile devicesâ and in order to fill this market gap an all-in-one app is needed, without forcing users to leave the game. This market is huge as âmobile usage around the world is growing every year, with a 56% Global Mobile Traffic in 2021, having raised from 6% in 2011â (2022).
A dominant GameFi focused chain is yet to emerge, despite this, as data shows âWAX and Hive are hugely reliant on Alien Worlds and Splinterlands users, respectively, which compromise 54.55% and 99.85% of their total users. [...] BNB is the third largest chain by gaming transactions and gamers, and no title dominates its ecosystemâ (CoinMarketCap and Footprint Analytics: 2022 GameFi Industry Report, 2022).
Given the resounding failure of the Play To Earn model proposed to date, we have detected a necessary change in the approach to blockchain games. We consider that the current approach is wrong and we believe that the pillars of a game should be the fun and entertainment of the user thanks to a varied, personalized and fast-paced gameplay.
The integration of blockchain technology in SpaceRiders is not used as an economic incentive, but as a proof of ownership of your assets, their rarity and uniqueness, as well as a system that allows the creation of a real economy.
As a general conclusion to all reports consulted they all coincide in the important factors which need to change for the next GameFi products to succeed. Games must focus on offering funny, long-lasting and quality gameplay to players. In support of this position, we would like to quote from a statement in the Binance Half Year Report on the subject:
''when âearningâ becomes the primary purpose of playing a game, long-term sustainability of the gameâs ability to attract and retain users is called into question during times of market volatility [...] Instead of a Play-to-Earn model, adopting a Play-and-Earn model might better address this. In the Play-and-Earn model, earning is an additional value proposition that enhances the gaming experience. Rather than playing to reap financial rewards (likened to a job), designing gameplay that attracts gamers who enjoy the game and as a bonus, earn financial incentives is likely a more market-agnostic modelâ (Binance Half Year Report, 2022: 43).
Gaming Industry Market Study
Gaming Industry growth, as well as the whole entertainment & media industry, has slowed down due to macroeconomic conditions but it has still managed to maintain the growth rate, which peaked during the COVID-19 lockdowns. We analyze few statistics and conclusions extracted from reliable industry sources such as ISFE (Europeâs Video Games Industry), PwC and Grand View Research.
According to various data, the Gaming Market was valued between $195.70B and $202.64B back in 2021. The growth expectancy of its Market Size from 2022 to 2030 is set at a compound annual growth rate (CAGR) of 10.2%. Some forecast the total video games revenue to be â$321 billion by 2026â (PricewaterhouseCoopers, 2022).
Global Games Market so far in 2022, as shown below by Newzoo, has a total market size of $203.1B, which represents a 5,4% YoY growth. The Smartphone Games has almost half of the market dominance with 45% out of the total market size.
A big cut on the market size in the upcoming years might be sustained by mobile gaming, âwith engagement on mobile at an all time high, there are plenty of opportunities for innovation in gaming subgenres and seize the next big disruption in the gaming marketâ as Data.ai shows âmobile-first markets spend â of waking hours on mobile. Across the top 10 markets analysed, the weighted average surpassed 4h 48 mins in 2021 - up 30% from 2019â (State of Mobile Gaming, 2022).
Despite that, we must not underestimate the growth of console devices as they âexperienced growth with around 31.0% of the revenue share in 2021. The console device is expected to register the highest CAGR growth from 2022 to 2030â and âthe mobile device segment is anticipated to witness nearly 13.0% CAGR growth in the forecasted periodâ (Gaming Market Size, Share & Trends Analysis Report, 2030, 2021) which gives us an idea of how growth will be driven by different devices, resulting in the aforementioned Gaming Industry forecasted growth.
Despite the macroeconomic environment which, inevitably, slows down the whole economy growth, the gaming sector doesnât show drastic signs of underperformance unlike other market sectors. We find ourselves in a turning point, where technology is rapidly improving, allowing more and better accessibility to it across the globe, thus resulting in an increase of gaming engagement and consumer spending.
It is yet to see the impact that new gaming approaches will have in the long term, but one thing is clear, GameFi & NFTs are here to stay and, once the dynamic of GameFi design is gameplay-oriented, it can become a serious competitor to traditional gaming and take an important share of the total gaming market.
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