Web3 coins show an increase in investments, on-chain activity and trading volume for virtual worlds.
Web3 coins attract attention
A new report by DappRadar revealed that the web3 gaming industry is off to a strong start in 2023 with $156 million raised in ten investments in January.
Notable developments include TreasureDAO emerged as a platform for building metaverse projects, Square Enix launched its first NFT game, and Courtside Ventures has invested $100 million in its third venture capital fund focused on sports, collectibles, health and gaming. Investments in web3 games and metaverse projects totaled $156 million.
Daily active wallet (dUAW) rose 1.31% to 858,621, accounting for 48% of dApp activity in January, according to Kriptokoin.com data. On average, the market capitalization of the top gaming tokens increased by 122% and GALA took the lead with 218%. Additionally, trade volume for virtual worlds (experimental metaverse) experienced significant growth in January 2023, reaching $44.5 million, up 114% from December 2022. According to the report, the success of metaverse dApps like The Sandbox and Decentraland has contributed to significant growth in trade volume for virtual worlds. However, the statement said:
“The increase in top gaming coins in January 2023 is a very positive sign for the industry. On-chain metrics are on the rise and the hype surrounding these coins is only growing.”
Other successes in the industry included the launch of the Sewer Pass from Yuga Labs, which generated $44.6 million in trading volume in just two weeks. In addition, the pass granted access to the limited-time Dookie Dash game, which owners play to make them ‘fit to summon’.
Increased web2 interest
Kai Bond, a partner at Courtside Ventures, shared his investment thesis as part of the report:
“The biggest results always come at the intersection of a new form of distribution and a new type of monetization. Web3’s promise is in the same space and Courtside Ventures is well positioned to capitalize on it.”
Japanese game publisher Square Enix is releasing Symbiogenesis, the first NFT game on the Polygon network. The story-driven game features 10,000 NFT characters and turn-based gameplay on a floating continent threatened by a dragon. Players will not need to own an NFT to access the game, but it will add ‘extra value’ and character NFT owners can create duplicate NFTs to share story information with other players.
Game report results
The report concluded that although the web3 gaming industry faced challenges in 2022, performance in January 2023 showed signs of improvement. Experienced studios are being funded to create quality web3 games, which means the focus of venture capital investors is shifting towards longer-term horizons.
In addition, the industry is moving towards a “build” mode, prioritizing quality over quantity. All in all, the outlook is positive and the web3 gaming industry is expected to grow and innovate.
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