The long-awaited AAA blockchain games are finally starting to hit the markets. These GameFi coins are attracting attention. As Kriptokoin.com, we have compiled the analysis of GameFi Coins for you.
Christmas worked for cryptocurrencies
After a tough year, January has been the most favorable month for the crypto market. While much of what can be said applies to other bullish cycles, various statistics made January very interesting in the blockchain space.
For example, while altcoins tend to follow BTC in terms of performance (first the Bitcoin season, then the altcoin season), the end of January saw a phenomenal performance in altcoin prices, including GameFi coins. This suggests that the market is strategically waiting for any sign of positive macro news to return to highly speculative crypto-assets despite the carnage in 2022.
GameFi investment has continued to dry up, and it remains to be seen if the positive sentiment continues long enough to rekindle VC interest in blockchain gaming projects. In January, more than half of the funding went to GameFi infrastructure. Investing in certain games or studios is still a risky proposition, but venture capitalists aren’t all that lenient on the GameFi industry.
Key findings
Crypto overview
- ETH surged from a low of $1,200 at the end of December to $1,660 and achieved its best price-performance in a year.
- Many leading altcoins have seen their value double or even triple.
GameFi users
- The percentage of new users on GameFi as a percentage of total users fell to 36% from 38.8% in December.
- GameFi spiked a bit at the end of December.
- However, new GameFi user numbers were at their lowest since August 2022.
Overview of GameFi projects
- Even while in Beta, Illuvium has grown to have the third highest number of active users on Ethereum.
- AXS’s price doubled, while Axie Infinity’s transaction market share increased.
- Polygon GameFi users tripled from January 1 to January 5.
- Unlike other ecosystems, BNB’s GameFi user numbers have dwindled.
GameFi investment and financing
- GameFi funding continued to decline, reaching a record $20.9 million per month.
- 3 projects in the GameFi space received funding in January.
Crypto macro overview
The crypto market had its best month in nearly a year as the price of ETH surged from the $1,200 low at the end of December to the January high of $1,660.
Equity markets also had a positive month. Still, the ETH crypto price surge in January was more significant than other bullish cycles over the past year, indicating a resurgence of interest in crypto.
January was extremely favorable for the price of altcoins and therefore the GameFi market. For example, the prices of the three leading altcoins for GameFi (SOL, AVAX and BNB) rose 146%, 80% and 26.4% month-on-month, respectively.
GameFi market overview
The percentage of new users on GameFi has dropped to 36%. The number of new GameFi users was the lowest since August 2021. These stats have been around for several months and show that people are hesitant to return to the GameFi space. The number of active GameFi users increased at the end of December.
This coincided with the sharp increase in Ethereum price. Footprint Analysis counts an active user as a unique wallet that interacted with the blockchain in the previous month. A person may own more than one wallet, but the measurement is still a good indicator of the amount of activity occurring on the chain.
Overview of GameFi projects
Even in beta, Illuvium has the third highest number of active users on Ethereum. Game Ranking on Eth ChainIlluvium is one of the most anticipated GameFi games and its token (ILV) is the highest priced GameFi token.
Axie Infinity has seen a growth in the market share of transactions as the token price has more than doubled on a monthly basis. Axie Infinity was the first blockchain game to gain widespread acceptance over a year ago. It is still the best blockchain game by volume. The number of GameFi users on Polygon tripled from January 1 to January 5.
Most of these gains came from Gamer on Polygon’s Arc8. Other chains, namely Hive and Wax, achieved 50-100% increases in MoM for this metric, though much more stable. BNB saw a decline in GameFi user numbers in January.
GameFi Coins investment and financing overview
Despite positive numbers on GameFi, total GameFi funding was a one-year low at $20.9 million. Only 3 GameFi projects completed financing deals in January.
These are: Intella X, Oh Baby Games and YGG Japan. IntellaX is building a blockchain wallet for gaming. Web3 game studio Oh Baby Games has closed a $6 million startup round. YGG (Yield Guild Games) is one of the leading gaming guilds on GameFi and has raised $2.9 million for its Japan branch.
Also, the analytics Footprint Analytics community is a place where data and crypto enthusiasts around the world help each other understand and gain insight into Web3, metaverse, DeFi, GameFi or any area of the emerging blockchain world.
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