- The popularity of blockchain games has waned in the last six months.
- Despite this decline, proponents of the technology remain optimistic about its potential for transforming the gaming landscape.
Blockchain technology has been making waves in the gaming industry for a few years now, but the last 6 months have seen a dramatic decrease in daily volumes of blockchain-based games. An analysis by CryptoMonday.de reveals that daily volumes have dropped 41% since August 2022.
CryptoMonday.de CEO says:
CryptoMonday.de CEO Jonathan MerryThe decrease in daily volumes of blockchain games is a concern. We’re seeing a lot of hype and excitement around the concept, but it appears that not enough traction has been gained to sustain its presence in the market.
Factors Believed to Be Contributing to the Decrease in Daily Volumes
The decline in daily volumes is likely due to several factors. Firstly, the bear market of late 2022 saw a sharp drop in cryptocurrency prices. This significantly reduced the value of blockchain-based gaming assets denominated in cryptos like Bitcoin and Ethereum, leading players to hold onto their assets rather than trade them on decentralized exchanges.
Secondly, the rise of so-called “yield farming” has led to a large influx of new players who are more interested in earning returns by leveraging their crypto holdings rather than playing games. This has further reduced the demand for blockchain gaming assets.
The lack of mainstream adoption has been an issue as well. Blockchain gaming is still in its early stages and, as such, has not seen the same levels of adoption that more established gaming genres have. This has also contributed to the decline in daily volumes over the last 6 months.
Finally, the high instances of hacks and scams that the blockchain gaming space has experienced in its short history have put off a lot of potential players. The high-profile Axie Infinity hack of March 2022, which resulted in losses worth $622 million, is just one example of such incidents.
Transforming Gaming
It is clear that although blockchain gaming holds a lot of potential, the industry still has some way to go before it fully matures and becomes mainstream. The team at Undeads Metaverse are taking steps in the right direction with their AAA survival game and may be leading the way for the future of blockchain games. ’
Merry suggests that developers should focus on building more user-friendly experiences to attract casual gamers and make it easier for them to earn rewards from the gaming experience. Additionally, he recommends adopting more accessible payment methods and greater engagement with the gaming communities to encourage adoption.
