Nansen Report: Web3 Gaming Sector to Spike 68% Annually Over Real-World Rewards
- Nansen predicts the Web3 gaming sectorto grow by 68% annually and hit a value of $301.5B by 2030.
- The report found that role-playing games (RPGs), like Gods Unchained and Axie Infinity, capture 22% of the market.
- It also highlights that social platforms (Twitter, Discord, and Telegram) help these games build robust communities and trust.
A recent Nansen report suggests the Web3 gaming sector is booming and predicts an impressive CAGR of ~68% (between 2024 and 2030).
The blockchain's decentralized nature could propel the industry to $301.5B by 2030, driven by rare, in-game assets (like digital currency and NFT characters and weapons).
Why? Because these tech-savvy digital assetsoffer entertainment and financial incentives that old-school titles just can't compete with.
In the traditional gaming arena, player achievements are often confined to the game's ecosystem. However, P2E titles continuously add new incentives that bring tangible, real-world value to in-game achievements.RPGs Capture 22% of the GameFi IndustryRole-playing games (RPGs) stand out in the GameFi arena because their character development and immersive, in-game economiescomplement Web3's decentralized framework. Owing to this, the genre accounted for 22% of all Web3 games last year.
New RPGs are continuously emerging. However, a few prominent ones that continue to attract widespread attention includethe NFT card game Gods Unchained and the Pokemon-like battle game Axie Infinity.
Gods Unchained, for example, recentlyreleased 40 new Ethereum-based NFT cards (Tower of Dread), enabling players to enhance and expand their decks - all of which were quickly snatched up.
AAA games (defined as having a minimum backing of $25M, being endorsed by a large publisher - like Ubisoft or Epic Games - and being run by industry experts) set a new standard in the blockchain gaming realm.
Let's look at the first blockchain-based AAA title, Illuvium. In 2022, it raised a jaw-dropping $72M in digital land sales. It has its own in-house publishing team (Illuvium Labs) and is led by Kieran Warwick (an industry veteran valued at roughly $900M as of April 1).
Although AAA games only take up 1% of all P2E games and 6% when combined with AA (which have lower production requirements and are independent), the report found these values exceed traditional AAA and AA titles distributed on the Web2 gaming platform Steam.
The blockchain's multifaceted nature, coupled with players' preference for high-quality content, suggests that GameFi AAA titles could fill the market's void and garner significant capital in the coming years.
Web3 Games Personalized Play & Token IncentivesAll blockchain games bring something different to the table.Seraph (an action RPG) leverages a single-token model to keep its utility token ($SERAPH) off-chain. It fosters stable economic cycles and easy fund transfersto focus user engagement on a single currency.
Meanwhile, in Axie Infinity, players can collect, battle, and breed Axies(digital NFT pets) to earn token rewards ($AXS) and in-game assets, like new traits and abilities for enhanced gaming capabilities.
Illuvium also has a compelling narrative. Its immersive 3D experience has its own NFT marketplace, enabling players to trade rare assets (like land and weapons) for in-game advantages and to earn extra capital.
The funds are made from its in-game currency ($ILV), which has an impressive $179.12M market cap and a 24-hour trading volume of $13.52M(and its value was even higher in earlier days).
Each game employs unique strategies to attract gamers and manage economic activities, offering different digital asset rewards and dynamics.
The report also highlights that social platforms like Twitter (X), Discord, and Telegram help developers create and sustain a dedicated community.
They're often used for engagements, updates, and fostering a sense of belonging.Axie Infinity notably boasts one of the most active social media presences, with 869K X followers and 591K on Discord.
Crypto-based Telegram games have also become more prominent this year. For example, the Telegram Mini App Store hit 500M users in August, accelerating the visibility of crypto games like Hamster Kombat.
In addition, there's a new one (which enables users to trade and manage cryptocurrencies directly on the messaging service) that's poised to bring 1B mainstream users into Web3.
Asset Ownership & Community Spur Blockchain Gaming SuccessWith Nansen predicting thatthe Web3 gaming sector will grow by nearly 70%, it's clear that it's here to stay.
Blockchain games distinguish themselves from conventional ones by enabling actual ownership of digital assets(like digital currencies and NFTs) to incentivize players - despite many publications proclaiming NFTs are dead.
These games are also beneficial socially. Many developers build robust communities on platforms like Twitter, Discord, and X to boost player loyalty and strengthen kinship.
Overall,blockchain technology redefines traditional gaming by enabling players to earn real-world rewards. Unlike Web2 ones, where achievements only exist in a game's ecosystem.
ReferencesClick to expand and view sources
- Exploring the Future of GameFi in Web3 (Nansen Research)
- Gods Unchained's Official Twitter Account (X)
- Game7 2023 State of Web3 Gaming Report (Game7)
- NFT game Illuvium raises $72 million in digital land sales (The Block)
- 6 Questions for Illuvium founder Kieran Warwick (Cointelegraph Magazine)
- A Guide To Weapons in Illuvium Pre-Season 2 (ILLUVIDATA)
- Illuvium's Price Today (CoinMarketCap)
- 2024 Report Finds 96% of NFTs Declared Dead' Amid Market Instability (Bitcoin.com)
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