Blockchain Events
Blockchain Games Blow DeFi Out of the Water: Twice as Many Unique Active Wallets!
Blockchain games remained popular in 2022, while the decentralized finance (DeFi) market suffered. Even the beginning of 2023 is the same. But the issue is, will the excitement and traction last?
Blockchain games are an innovation in the video game genre. These games vary from regular video games in that they allow players to convert points into real money.
The ecosystem also compensates participants for the amount of time they spend playing the game.
These games, which are gaining tremendous popularity in underdeveloped nations, play a role in bigger discussions about what the metaverse is, what the crypto economy looks like, and what it does for people, particularly economically disadvantaged people.
The blockchain gaming spectrum’s business strategy stands apart. One of the reasons it has continuously done well throughout the years is because of this.
Especially when it comes to the blockchain industry’s activities and the rate of mainstream acceptance of blockchain gaming. Both may be magnified by examining the UAWs, or unique active wallets.
DeFi Space was defeated in 2022.
The bitcoin and blockchain industries saw numerous ups and downs last year.
The failure of established multi-million dollar corporations sent shockwaves throughout the industry. Despite the losses, there were some positives in the decentralized application market, owing to the blockchain gaming business.
The demise of institutions, such as Terra’s stablecoin depeg and the FTX disaster, had a profound influence on the decentralized financial industry.
At the time of writing, the reduction in TVL, or total value locked, amounted to $40 billion. According to DefiLlama figures, the TVL at the start of 2022 was roughly $150 billion.
During an interview at the beginning of 2022, a DappRadar official stated that if the bear market persists for a year, 80% of DeFi apps may be lost. A sizable number of participants did notice the escape gate.
The Emergence of Blockchain Games
While this was true for DeFi, the blockchain gaming industry has been relatively consistent, accounting for an average of 1.15 million daily UAW.
“While decentralized finance and general blockchain activity have been on the decline, gaming Unique Active Wallets (UAW) continues to climb, hitting around 1 million daily wallets,” said Pedro Herrera, DappRadar’s head of research.
Even at the start of 2022, GameFi remained the leading niche in the blockchain business, accounting for more than 50% of activity in the area. Polygon, Harmony’s DeFi Kingdom, Axie Infinity, and Splinterlands were among the sector’s top performers.
Even as of this writing, the gap between the game industry and DeFi remains enormous. Delphi Digital, a cryptocurrency research organization, collated the most recent statistics to highlight the preceding story.
“Gaming has more than twice as many unique active wallets than Defi,” the CEO claimed.
Meanwhile, in terms of the top games that made it to the top blockchain games list, Splinterlands was at the top, with about 300,000 UAW in a week. Other notable figures within the same time period included:
In 2021, UAWs linked to gaming will outnumber those connected to DeFi, representing 49% of blockchain industry utilization.
The enormous surge drew a lot of attention. But the question remains: will the buzz last till 2023?
Concerning Issues
Blockchain opponents, primarily veterans of the traditional gaming sector, fear these games would irreversibly harm the gaming industry.
While supporters of blockchain games argue that NFTs allow gamers to own items outside the specific games, these assets may be transferred and used in other games even if the games cease to exist.
Traditional game designers believe that, while this approach appears promising in principle, it is not a feasible use case in fact because each game has its own setting, plot, and ecology.
As a result, these assets from other games have no relevance in foreign regions. Even if blockchain game creators could create a collaborative ecology, a foreign item introduces the danger of defects that might contaminate the host ecosystem.
Profit accountability is another area that should be improved. Profit is the goal of game developers.
The shift of assets from within the games to an external public ledger makes it difficult for businesses to maintain track of finances.
A gamer can gain thousands of dollars in assets in Game A, then transfer to Game B and begin selling these assets to players in Game B, potentially at a lower price than the game owners.
As a result, Game B’s developers were undercut, resulting in a pricing war that the gaming industry would never allow.
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