DappRadar: Crypto Games Strengthen VC Investments amidst Bear Market

Jamal Molla
Written By Jamal Molla
I write about cryptocurrency, with a special interest in NFT and metaverse in particular.

While the cryptocurrency sector was badly affected by the current bear market, some subsectors such as game-related NFTs and play-to-earn games are least affected, allowing the subsector to continue attracting venture capital investments, according to DappRadar, the decentralized app tracking site.

The report showed that in June 2022, the crypto-based gaming sector reached its peak before it slowed down, according to the number of unique active wallets after hitting its peak.

DappRadar inferred that the high usage as shown by the number of active wallets encourages more investors in the blockchain game who sees such patronage as a bullish signal tilting towards more investment opportunities.

The report also showed that over $2.5bn has been invested in the sector in the second quarter of 2022 which helps maintained the pace the sector set in the preceding quarter. The figure is also well above the annual milestone of $4bn earlier set in 2021.

The report also explained that the sector may record $12bn in investment by the end o the year, pointing to the $4.5bn invested in the sector by Andresen Horowitz, a VC giant.

The virtual world subsector stood out in the gaming sector as it record a 79% rise in its trading volume since the last quarter.

Splinterlands leads the sector as the most popular game, with over 283,729 unique active wallets recorded daily during the quarter.

The report also listed Alien Worlds as another game that performed incredibly well during the quarter under consideration. Its number of unique active wallets is second to Splinterlands’.

Alien Worlds has recorded a fairly stable player base over the quarter as its number of active wallets depreciated by a mere 4% in the second quarter in comparison with the previous quarter.

According to the report, Axie Infinity, one of the sector’s most popular games, had a bad record over the period under consideration. Since the first quarter, the game lost two-fifth (40%) of its player base, thanks to the game’s SLP token’s depreciation and the Ronin bridge hack.

Hacking the game’s cross-chain bridge, a channel for transferring the Ethereum blockchain to Ronin, the game’s custom-built blockchain, dealt it a deadly blow.

While commenting on the report’s findings, the Head of Research at DappRadar, Pedro Herrera, opined that blockchain games remain one of Web3’s most promising sectors.

In Pedro Herrera’s words, “We are gradually seeing how Immutable-XGala Games, and other networks are positioning themselves to lead the rising category in years to come with impressive partnerships already in place.”

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