Crypto markets fell, but not blockchain-based games

  • $2.5 billion of investments were made in blockchain games during the first quarter of 2022
  • Current Market Conditions Won’t Kill Web3, Animoca Brands Executive Says

Blockchain-based games are proving surprisingly resilient to the widespread pushback from the crypto market of late.

The number of daily unique active (UAW) wallets of game dapps and that of game transactions has reached an all-time high since April, according to digital asset data provider DappRadar. And venture capitalists have taken note – and written checks – of the strong and engaged metaverse gaming playerbase, even as activity has slowed in DeFi and NFT this year.

When it comes to gaming investments, DappRadar and the Blockchain Game Alliance have recently reported that $2.5 billion poured into blockchain games in the first quarter of 2022 alone. In 2021, VCs invested a total of $4 billion in blockchain games. Companies expect year-round investment to increase by around 150% from 2021.

Case in point: gaming investment giant Animoca Brands checked in earnings that value his portfolio at $1.5 billion across more than 340 portfolio companies.

The company also reported revenue from token and NFT (non-fungible token) sales, contributing to net gains of $573 million for the first quarter.

Subsidiaries, such as The Sandbox metaverse and partnerships with Yuga Labs and ApeCoin DAO, are just a few of the company’s most profitable ventures, especially when it comes to virtual land sales.

Animoca invested $450 million in the Bored Ape Yacht Club metaverse game Otherside, and the group’s Otherdeed NFT land sale set the record for the largest NFT mint ever.

In a message To shareholders, Animoca co-founder and executive chairman Yat Siu wrote that “current market conditions will not kill Web3, the open metaverse, NFTs, or cryptocurrencies.”

In his “blood point of view”, he described the leaders of the shift to Web3 as the companies and projects that are building the open metaverse and encouraged readers to “keep their eyes on the strong growth of the Web3 market”.

Venture capital firm Andreesen Horowitz, meanwhile, recently spear the $600 million Games Fund One, dedicated to investing in game studios and transforming the Web3 game ecosystem.

A16z also raised the largest crypto venture fund at $4.5 billion, bringing the company’s total crypto and Web3 holdings to $7.6 billion.

While the traditional gaming industry is currently worth $300 billion, the crypto gaming space is on track to bring the economic potential of the metaverse market to at least $8 trillion.

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  • Ornella Hernández



    Ornella is a Miami-based multimedia journalist who covers NFTs, the Metaverse, and DeFi. Prior to joining Blockworks, she worked for Cointelegraph and also worked for TV channels such as CNBC and Telemundo. She started investing in Ethereum after hearing about it from her father and hasn’t looked back since. She speaks English, Spanish, French and Italian.