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- 1 The blockchain industry is showing potential growth for investors and users alike, with the third quarter recording $600 Million.
- 2 Compared to the 2022 analysis, the market has only made 30%, recording $2.3 Billion to date.
Among the top investments that cryptocurrency is gaining popularity in is the blockchain gaming industry. Blockchain gaming is a game that employs elements of blockchain technology and allows players to own NFTs. Players can either buy or sell their NFTs and earn money. Additionally, players complete in-game levels and acquire funds.
The gaming industry is a booming business that is gaining fame each day. Currently, the blockchain industry is witnessing millions of profits in 2023 alone. What does this mean? It shows that individuals have been engaging in blockchain gaming, projects have been completed, and profits are coming through. This report will focus on the profit the gaming industry has witnessed from year-to-date.
Investment Profits in 2023
The third quarter of the year has been facing a downtrend in the cryptocurrency market, indicating bearish momentum. The gaming industry data suggests otherwise; the stakeholders are witnessing a potential move in the gaming market. The third quarter of the year showed a significant rise, marking a $600 million investment.
Blockchain gaming has witnessed rapid changes and the business has generated an income of $2.3 Billion to date. In the third quarter alone, the industry witnessed an income inflow of $600 Million in blockchain gaming. The numbers show that the engagement in blockchain this year alone is surpassing its comfort zone, although the year has been bearish in the crypto sector.
According to DappRadar (a decentralized application tracking platform), the year has been great for the gaming industry. During the first quarter, the gaming industry managed to collect $739 Million in investment. This shows that at the start of the year, the gaming industry was not affected much, although financial banks were collapsing. During the second quarter, the industry increased its investment income slightly, 34% higher than the first quarter. It recorded $973 Million. In the third quarter of the year, the gaming industry barely made it to half a million. The bearish flag in crypto affected the third period of the gaming industry, although it managed to record $600 Million.
The total sum of the year’s investment has added up to $2.3 Billion to date. Comparing the third quarter of 2022 and the third quarter of 2023, there is a decrease in investment income. According to DappRadar, the previous year recorded a $1.2 Billion investment in the third quarter of 2022. This was 50% higher than what was recorded in 2023. This showed a decline in gaming investments.
Blockchain gaming is storming the gaming industry heavily, and investors understand the potential that the gaming industry is capable of. Various investments were made to make certain developments in different areas. For instance, $213 Million was moved to metaverse-related games and technology; the money was wired to that project to make certain developments. Additionally, DappRadar highlighted that the amount of funds invested in Web3 gaming is 32% less than what was invested in Web3 gaming in 2022. This year, the amount that was invested in 2023 is 30% of the fundraising activity in 2022.
However, it has not been a great year for the crypto gaming industry; regulatory challenges in the first two quarters led to individuals losing their occupations. It is believed that there are over 3,000 job losses at the moment.
Q3 Trend Highlights
According to DappRadar, Q3 made a debut change in the gaming industry despite the bearish flag in the cryptocurrency industry. The third quarter of the year showed a challenging season in cryptocurrency. The market was bearish, but how did the crypto-gaming industry manage to raise $600 Million in investments?
Let us look at various factors that triggered the shift to a promising third quarter in the gaming industry. The first shift was through the growing user engagement activity. Compared with the second quarter, the third quarter witnessed a 12% engagement increase. DappRadar says that blockchain gaming activity showcased 780,000 daily unique active wallets. This means that more users are being attracted to participate in the gaming activity every day. This shows that there is an increase in engagement and interest in blockchain gaming.
Moreover, the third quarter showed a surge in investments. The web3 gaming managed to raise more than half a Million in a bearish continuation. This, however, showed an increase in the investment year, raising the year’s investment to $2.3 Billion. This indicated a strong future in the gaming industry. Besides, web3 gaming showed a dominant face in the gaming industry. Among the web3 games, Alien Worlds managed to top the charts as the most-played game in the third quarter of the year. Furthermore, various web3 gaming increased their transactions; games like Anxie Infinity and Gods Unchained made over $100 million combined. Anxie Infinity showed $90 million, while Gods Unchained portrayed $60 million.
Lastly, the virtual world also made statements in Web3 gaming. Virtual reality gaming managed to record trading volumes of almost $15,000 in figures, while land sales increased to 28,000 sales. This demonstrated an attraction to virtual reality investment. Additionally, it surfaced the enduring enthusiasm for the virtual reality experience.
Conclusions
The gaming industry is making significant improvements and the future is crystal clear. The total investment for the year is showing remarkable growth. More games are being developed, and more bases are being secured. The blockchain gaming industry is showing the future of gaming as a smooth movement to its peak. A lot of investment is yet to be made and furthermore, the year has not yet ended. We therefore hope that the investment numbers will increase.
The first two quarters of the year had a regulatory problem; however, the gaming industry still dominates the decentralized application market, whooping the market and skyrocketing the investment to $2.3 Billion.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
