Gaming Dominates 57% of Blockchain Activity as More Traditional Studios Jump In
UpOnly | Research #23: Gaming dApps reign supreme as Neowiz and PlayStudios pivot to Web3 gaming
Blockchain gaming has become a significant force in the cryptocurrency market, now valued at around $1 trillion. According to a new industry report, Web3 games contributed 57% of total blockchain activity, a new record high. The sustained user interest is one of the factors driving several traditional gaming studios to embrace the potential of blockchain to disrupt the gaming landscape.
In the past week, two mainstream gaming studios, Neowiz and PlayStudios, dived deeper into Web3. Germany-based Gunzilla Games also raised over $46 million to build out its blockchain-based gaming platform. This edition of UpOnly | Research brings you a roundup of these significant developments in Web3 gaming, including key takeaways for investors.
Gaming makes up 57% of blockchain gaming activity
As the cryptocurrency market shows signs of recovery across the board, the number of blockchain transactions linked to gaming activity has also increased. Industry tracker DappRadar revealed in its July report that 57% of all blockchain transactions were related to gaming. The latest figure represents a five percent uptick from the 52% reported in the previous month.
(Source: DappRadar)
Another impressive statistic from the report shows the gaming industry had approximately 1 million daily active wallets in July, with roughly $857 million in cumulative transaction value. Such a level of user engagement near the bottom of a bearish crypto market condition only highlights how much growth lies ahead for the Web3 gaming world as market sentiments flip bullish.
Neowiz partners with Polygon for Web3 gaming platform
South Korean gaming giant Neowiz is moving into the Web3 gaming world through a partnership with Polygon. Founded in 1997, the publicly traded company has a market capitalization of $468 million. It is the publisher of popular gaming titles such as the FIFA Online series (in partnership with EA Games), Black Squad, and Special Forces. CrossFire, another gaming title co-published by Neowiz, is also one of the world’s most successful gaming titles, with over 1 billion registered user accounts.
The new partnership with Polygon helped Neowiz launch a new Web3 gaming platform called Intella X. Intella X will serve as a gateway for Neowiz to integrate NFTs and other blockchain components into its suite of games. Additionally, developers can launch play-to-earn games on Intella X with the opportunity to serve a broad audience of players.
Neowiz has released two of its gaming titles, House of Poker and House of Slots, on Intella X. More games, including Brave Nine, Cats and Soup, and Alliance of Arms, are also in the pipeline, with other games planned within the next 12 months.
PlayStudios launches blockchain gaming division with $10M funding
Founded in 2011, PlayStudios is another traditional gaming studio expanding its reach to the Web3 world. The Nasdaq-traded company made its mark in the gaming industry, building free-to-play mobile and social games. They are the company behind the popular free-to-play game Tetris and the loyalty program PlayAWARDS.
Earlier this month, PlayStudios announced the launch of its Web3 gaming division, PlayBLOCKS. The new venture, funded with $10 million capital, aims at leveraging PlayStudios experience in the players’ rewards market to enter the blockchain gaming industry.
PlayBLOCKS recently acquired blockchain-based rewards startup WonderBlocks, to fast-track its Web3 journey. It has also named blockchain startup Forte as a technology partner to help integrate assets from WonderBlocks into the broader PlayBLOCKS ecosystem.
Gunzilla raises over $46M for new Playstation destined game
Frankfurt-based AAA Games developer Gunzilla Games announced the completion of its latest funding round this week. The company raised around $46 million from crypto venture funds, including Griffin Gaming Partners, Animoca Brands, Jump Crypto, and Huobi Group. Twitch co-founder Justin Kan also participated in the funding round.
Gunzilla Games will channel the new funds toward the development of GunZ, a Web3 gaming platform where players can own their in-game assets. GunZ will also be home to Off The Grid (OTG), a recently announced Battle Royale game developed by the gaming studio.
According to Gunzilla, OTG is Playstation, Xbox, and PC compatible, with an official release scheduled for 2023. The game will also not impose its NFT features on players — the option to play with NFTs or not will always be up to the players. This flexible approach indicates Web3’s inclusivity, a stark contrast to recent actions by game developer Minecraft banning all blockchain-related games on its server.
Get market-moving blockchain gaming insights on UpOnly
The Web3 gaming industry shows remarkable potential to retain users. Increased capital allocation to “play-to-earn” also proves its immense potential to become the global standard for gaming ventures.
UpOnly provides a comprehensive analytics solution for tracking the performance of blockchain and Metaverse gaming projects. UpOnly also offers unique insights such as token holder distribution, transactions, and NFT sales, allowing investors to make informed decisions.
UpOnly’s week in review
About UpOnly
UpOnly is a first-of-kind data directory that provides insightful and actionable data on the move-to-earn, play-to-earn, and Metaverse gaming fields. We aim to become a one-stop shop for gamers worldwide to identify the most lucrative play-to-earn opportunities and optimize their performance. Alongside our data directory, we will launch a decentralized prediction platform allowing anyone globally to bet on the outcome of play-to-earn and Metaverse gaming events.