Crypto gaming has become one of the fastest-growing industry participants in the blockchain sector and has witnessed significant growth over the years, attracting considerable interest. The possibility of acquiring in-game assets and items within a framework of decentralization and the potential for their trade outside the gaming world has breathed new life into one of the most exciting technology sectors currently available.
Expansion Expectations in Gaming
According to a report recently announced by Binance Research, the blockchain gaming market generated revenue of $7.8 billion in 2023. The sector is projected to exceed $22 billion by 2025, with an annual compound growth rate (CAGR) of 70.3%.
Even though these figures are impressive at first glance, it should not be forgotten that the industry is still in its infancy. As reflected in the graph above, the revenues obtained from blockchain games were only a tiny fraction of the revenues generated by the traditional video game industry.
To understand the difference, for every 1000 players in Minecraft, the best-selling video game of all time, there was only 1 active player in Alien Worlds, one of the leading blockchain game sectors.
Nevertheless, on-chain game developers seem to be pondering what can be done about the relative advantages over traditional competitors to increase the visibility of crypto-linked games.
Advantages Over Web2 Games
As mentioned in the report, the decentralized structure could ensure the continuity of in-game assets even if the game’s production team goes bankrupt. This situation could be considered revolutionary.
In contrast to Web2 games, where the failure of a centrally governed organization means the end of the game as a whole, web3 games have the potential to stand indefinitely.
Moreover, the interoperability feature that could be provided in the future may allow users to transfer the items or rewards they win in one game to use in other games, or even outside the gaming world. In the traditional setup, people can only use their items within that specific game.
Current State of the Gaming Market
According to the information provided by DappRadar data, the dominance of blockchain games in the decentralized application (dApp) world continues. At the time of writing, the sector, with 1.16 million unique active users, seems to dominate 33% of the dApp market. Even more intriguing is that with approximately 10.33 million in transaction volume, it has become the busiest dApp, even surpassing the DeFi category.
Although these are encouraging signs for the future of the market, it would not be wrong to say that at least for now, the reality is a bit different. Our article, which we reported on the frequency with which games developed in this field go bankrupt, is still relevant today and continues to shed light on the state of the market.
