2022 Q1-Q3 GameFi Industry Research Report
Dear community, how time flies! 2022 ushered in its 3rd quarter. In the past six months, the GameFi industry has experienced huge shocks. Fortunately, CheersLand has grown faster with your support. Click here to see our semi-annual summary👇
This report mainly summarizes and analyzes the overall data of GameFi in 2022 by now.
Q1: The Overall Performance Of the GameFi Market in Q1 in 2022 is Relatively Stable
The report made by Footprint Analytics and DeGame teams pointed out that, affected by the market, the total market value of GameFi Token fell by 15% in the first quarter, which was positively correlated with the change in the market value of BTC. GameFi faced an increase in popularity and funding in January 2022, spiraling down from February and consolidating in April. In March 2022, the industry starts to rise again, but we could see a new decline due to the recent crypto market crash.
However, GameFi’s total number of users was not affected by it, and it did not show significant user loss. The overall number of users in the first quarter basically remained around 1.2M.
In terms of chains, the top three public chains in Q1 were Harmony, Ronin, and BSC, with a total transaction volume of $6.322B. WAX is in the lead, accounting for 77.7% of the total game volume of each chain combined.
Q2: GameFi Becomes a Keyword
It is safe to say that in the second quarter of 2022, the cryptocurrency market is in a state of disarray.
However, despite the record lows in the secondary market, investment trends and themes are taking shape in the primary market, with established institutions and new investors quickly entering the market to find the best investment opportunities in various verticals. The primary market tends to ambush into hot areas before the secondary market, which also signals a “time lag” in investment trends in the secondary market over a period of time. Therefore, taking advantage of the investment and financing situation in the primary market is tantamount to saving for future investments in the secondary market.
Looking back at the Q2 primary market investment and financing activities, Odaily Planet Daily found:
- The number of financings in Q2 was 511, and the number of transactions over US$100 million reached 28;
- Encrypted financial service providers are closely connected with the traditional financial industry and continue to innovate in custody, settlement, payment and other fields, so they have received more attention from capital;
- From the perspective of the amount and amount of financing, GameFi is the preferred theme for the layout of major investment institutions;
- A total of 11 institutions participated in more than 10 investments in Q2;
- Animoca Brands has participated in 41 investments, making it the institution with the most investment projects;
- The traditional organization and enterprise layout Web3 is more inclined to transaction payment, Metaverse and DAO.
Note: Odaily Planet Daily divides all projects with Q2 disclosed financing (the actual close time is often earlier than the news announcement) into 5 major tracks: infrastructure, application, technical services merchants, financial service providers and other service providers. Each track is divided into different sub-sections including GameFi, DeFi, NFT, payment, wallet, DAO, Layer1, cross-chain and others.
Q3: GameFi in Crypto Winter
As Bitcoin, Ether and major cryptocurrencies fall to Q4 2020 lows, on-chain gaming (GameFi, Play-to-Earn) appears to be one of the biggest victims of this ongoing carnage.
The iconic GameFi token has lost over 90% of its capital in the last six months. AXS, for example, is down 91% on ATH, while GALA is down 93%. Axie Infinity’s Smooth Love Potion (SLP) token has lost 99.1% of its value in the last six months.
Conclusion: How Can Game Developers Survive the Downturn?
- Improve the quality of the content, including immersive tasks, better graphics, and a smooth user experience.
- Better business model, presumably including decentralized autonomous organizations and robust token economics.
- Regulatory compliance.
About CheersLand
CheersLand is a scalable GameFi Metaverse Aggregator where anyone can monetize their gaming experiences and social networks. CheersLand runs the Game-as-a-Service model, dual-driven in Play to Earn and Build to Earn, with the product portfolio of Gamified Launchpad, Multi-game Universe, Multi-asset Staking Platform and NFT Market, and powered developing of new users by the invitation mechanism, which builds a unique and diversified GameFi ecosystem.
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