According to a recent report by DappRadar, the crypto-based blockchain gaming industry has received $600 million worth of investments in the third quarter (Q3) of 2023. This figure has brought the total investments in the sector this year to a whopping $2.3 billion.
However, Q3’s investments were the least compared to the four previous quarters. Q3 saw a 38.3% drop in investments compared to Q2 2023. Furthermore, the inflow is almost half that of Q3 2022.
As per the report, crypto-based blockchain gaming continues to dominate the Dapp (Decentralized Application) ecosystem in Q3 2023. Gaming has outperformed every other facet of the Dapp ecosystem since at least Q3 2022. Gaming is closely followed by DeFi (Decentralized Finance), which has also been a recurring trend.
DappRadar notes that blockchain gaming witnessed a 12% increase in daily unique active wallets (UAW) in Q3 compared to Q2. The report notes that the industry saw an average of 786,766 active wallets every day.
Wax is the blockchain of choice for many, topping the chart for transaction count. Despite a 42% drop from Q2, Solana (SOL) took second spot, with Binance’s BNB Chain taking third, with a 17% drop from Q2.
Why is crypto and blockchain gaming taking off?
Gaming, in general, is a massive multi-billion-dollar industry. However, blockchain and web3 are fairly new aspects in this ever-growing sector. Moreover, gaming has seldom taken a hit during market crashes. This is likely because gaming is more towards recreational use or for leisure, although at times also as a sport rather than a profit-making activity.
Moreover, more and more mainstream video game studios are entering the web3 realm. Most notably, Dan Houser, the former vice president of creativity for Rockstar Games, who famously co-wrote almost all of the GTA (Grand Theft Auto) titles, left Rockstar and is now on the advisory board of Revolving Games, a blockchain game studio.
According to a report by Meticulous Research the crypto-based blockchain gaming market is expected to reach $165.4 billion by 2030, at a CAGR (Compound Annual Growth Rate) of 51.7% from 2023 to 2030.