While GameFi continues to grow in popularity, there are still relatively few truly entertaining games among a total of 1,322 projects. In many cases, it’s not enough to evaluate a project’s potential just by looking at screenshots or walkthroughs, as a game’s playability is a subjective point. Instead, let’s look at 3 methods you should consider when assessing the health and potential of the GameFi coin project.
3 methods for GameFi coin analysis
The number of users is the number of players in the GameFi program and is the key to the healthy functioning of the GameFi ecosystem. It also reflects the popularity of the game project among users. According to Footprint Analytics data, the number of GameFi users has been increasing since April 2021 and has reached a balance. This is highly correlated with the rapid growth of many projects and the continued development of the GameFi market.
Blockchain users show that public Blockchains, which have more users in the last 3 months, are predominantly WAX, Hive, Polygon and BSC.
Among them, Splinterlands, like the Hive chain, has about 300,000 daily users and accounts for more than 98% of Hive users. Splinterlands is one of the most popular gaming projects lately with its native token SPS priced below $0.1 and its low issue price lowers the threshold for players to participate in the game. There is also WAX, which has managed to retain a high number of users, which shows that the games in the WAX ecosystem are more popular than other Blockchains. Players can play Alien Worlds for free and earn $10 to $15 for a few hours of gameplay.
Compare this to Axie Infinity on the Ronin Blockchain where the average daily user count has dropped from 120,000 to about 20,000 in the last 6 months. The difference in this number is that most game users’ activities are done off-chain, and only transactions involving game accessories are done on-chain. Therefore, high gas fees for on-chain and inefficient on-chain transactions are the reasons for the decrease in the user base.
3 things stand out in different successful projects:
- Besides game types that appeal to users, it should be applicable to all crypto users and have a low threshold value.
- The play-to-win model is also an important indicator of its high user popularity.
- Low gas fees and have efficient capabilities.
If the project does not focus on the growth of the number of users, even as the content richness of the game project gradually increases, it will be worthless without users.
Transactions per person
Because GameFi demands more capabilities from the network than traditional games, the protocols that support these projects require cheaper gas fees and faster transactions. As a result, many Blockchains are using custom chains specifically for gaming applications and enhancing capabilities to facilitate more project usage and user transactions. According to Footprint Analytics, the number of transactions per capita on the WAX Blockchain is relatively stable with around 35 to 50 transactions per day since April 2021, and WAX relies on projects like Farmers World and Alien Worlds, which is half the number of transactions on WAX. In terms of capabilities, WAX not only supports high-frequency transactions, but can also process fast transactions up to 8,000 per second.
The average number of transactions, especially in Avalanche, has increased since January, reaching 50 transactions on March 16. Avalanche, which initially had an important position in the DeFi field, gradually moved to GameFi with the popularity of GameFi. For example, Crabada is a game where players can explore the Crabada kingdom while earning income through mining, looting, breeding, warfare, exploration and crafting. It makes up the majority of transactions. Avalanche is an EVM-compliant first-layer Blockchain focused on speed and low transaction costs, achieving over 4500 TPS throughput and transaction termination times of less than 2 seconds. It aims to solve the scalability issues faced by Ethereum.
As you can see from the data, other Blockchains like Near and Moonriver are basically under 30 transactions per person.
Transaction volume per capita
Transaction volume per capita refers to the average amount of funds transferred per user. Analyzing GameFi projects is a crucial metric because it reflects the level of user interaction and the robustness of its product and tokenomic design. As an investor, you should look specifically at the continued stability of trends in per capita trading volume of a program seeking sustainable growth in user data and an increase in agreed-upon revenue for game-based programs. One of the more notable dips is OKExChain, which hit nearly zero volume after October, from a high of $20,487 per capita in May 2021. The development of OKExChain games is relatively slow, and the popularity of projects under planning is relatively low.
As of February, Harmony, Ronin, and Ethereum are currently GameFi’s main battlegrounds for per capita transaction volume, with prices on these chains ranging from $800 to $4,000. To assess whether a GameFi coin project has potential, one should look at which protocol model it uses. If it uses a protocol model like that of OKExChain, it is less likely to be successful as the chain ecosystem is slow to evolve and no other plans are made; If it uses a protocol model over Hive or WAX it has more potential as it focuses on user experience and maintains a good user growth rate.
You can take a look at the play-win guide that we prepared as Kriptokoin.com.
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