GameFi has entered a cooling-off period, what is the next main theme?
We think the next phase of the layout should focus on the following four directions: GameFi with better gameplay; “Steam Chain Games”; Gold Clubs; and game aids. Abstract: After almost half a year of intense development, the GameFi circuit began to cool down after December of last year. The market was adjusted to eliminate some speculative games with random charges and lower quality. Leading projects such as Axie are also facing a situation where user growth is slowing down and player revenue is declining. The entire track is also looking for new narratives and growth points. First of all, we have always believed that the GameFi circuit is an important way to attract players from outside the circle into the crypto field. Furthermore, even though there are still players who want to have fun and make money in a bear market, we are optimistic about the GameFi circuit for a long time. We believe that the next stage of the layout should focus on the following four directions: 1. GameFi with stronger gameplay; 2. “Steam Chain Games”; 3. Goldsmithing Guild 4. A game aid. 1. Market Overview 1.1 Trading volume declined sharply, active user fluctuations increased. Looking back at 2021, GameFi's trading volume peaked at the beginning of August and November. The trading volume reached around 220 million US dollars in the first week of August and the first week of November. More than 90% of this was from Axie Infinity. Other games with the highest trading volume include Alien Worlds, Sorare, Aurory, Gods Unchained, and Crypto Kitties. The trading volume of these games continued to decline after November. By the first week of 2022, GameFi's trading volume was around 44 million US dollars, which is already down more than 80% from the highest point. Axie Infinity's trading volume was only about 35 million US dollars, or about 16% of the highest point. However, despite a sharp drop in transaction volume, active users of chain games have been fluctuating and rising, from 470,000 at the end of July last year to 1.53 million at the beginning of January this year. The number of active users has more than tripled in half a year. As can be seen from this, although trading volume declined sharply after the market calmed down, new users continued to participate in GameFi. GameFi NFT Asset Trading Volume Source: The BlockGameFi Number of Active Users Source: Dapp Radar1.2 Multiple ecosystems are fully blossoming. Due to GameFi's high requirements for network performance, lower fees and faster transaction speed, Ethereum sidechains, Layer 2, and other Layer 1 public chains can all be used as infrastructure for chain games. According to the top 100 GameFi Dapps in the past 30 days according to Dapp Radar statistics, 57 have been deployed on BSC, 11 for Polygon, 10 for Wax, 7 for Ethereum, 4 for Immutable X, and 3 for Harmony. In terms of quantity, BSC's GameFi ecosystem is quite large. BSC is very passionate about games in the second half of this year, from Crypto Blades in the middle of last year to a series of P2E games characterized by gaming, represented by Crypto Mines in November. Although people have mixed reviews of the BSC ecosystem's game quality due to the currency price and economic model design of some games, GameFi has clearly become one of the main directions of BSC now. Low transaction fees and support from the Binance ecosystem all make BSC the best choice for development One of GameFi's public chains. In addition, there will also be a phenomenon where a single GameFi project drives the development of the entire public chain ecosystem. Taking Hive and WAX as an example, the card game Sppnterlands has promoted the development of the entire Hive. The number of active users of Sppnterlands has always been in the top five in the Dapp list, accounting for more than 90% of the total usage of the Hive network. WAX also relies on Alien Worlds to drive the entire game ecosystem, and Alien Worlds accounts for half of the WAX network's activity. The biggest contributor to Harmony's GameFi transaction volume came from DeFi Kingdoms, which reached 1.76 billion US dollars in 30 days, making Harmony a GameFi Dapp transaction...