Web3 Games Raise $160M Amidst 200K Weekly Transactions
Analytics platform Helika, in collaboration with Pantera Capital, has released a comprehensive report on the state of web3 gaming. According to the report, web3 games raised over $160 million between February 2023 and February 2024. A significant highlight is the surge in weekly gaming transactions, exceeding 200,000 across various blockchain networks throughout 2023.
State of Web3 Gaming
Helika's report explores multiple facets of the web3 gaming ecosystem, including play-to-airdrop campaigns, on-chain royalties, and the integration of AI in game development. It highlights how AI is accelerating game development and enriching player experiences.
Over $160 Million in Funding Between 2023 and 2024
Despite a bearish crypto market in 2023, web3 games demonstrated robust private market fundraising, securing $162 million across 25 ventures, with an average funding round of $65 million.
Gaming Airdrops Generate Over $500 Million in Value
Top web3 gaming titles conducted play-to-airdrop campaigns, distributing over $500 million in combined circulating market cap to diverse communities over the past year.
Over 200,000 Weekly Gaming Transactions Across Chains
Developers increasingly leverage Layer 2 solutions and alternative Layer 1 blockchains for their high transaction speeds and low fees. Games like Pirate Nation reached up to 9 million total transactions, with weekly peaks hitting 500,000, achievable only on alternative chains.
AI Reduces Game Development Costs by Up to 30%
AI is pivotal in web3 game development, from innovating game mechanics to optimizing player retention and monetization strategies. By automating LiveOps and design tasks, AI enables smaller teams to pursue ambitious projects, cutting development costs significantly.
Over 70% of Leading Web2 Game Studios Exploring Web3
Major web2 studios, including Zynga and Ubisoft, are actively exploring web3, contributing to the ecosystem's growth and diversity.
Insights from Helika CEO Anton Umnov
Helika’s CEO, Anton Umnov, highlighted the report’s findings on transaction volumes and the industry’s increasing diversity, emphasizing a future where interoperability and multi-chain functionality are standard.
"More than 200,000 weekly transactions are occurring across web3 chains, demonstrating a growing ecosystem with enhanced flexibility and innovation potential."
Umnov added, "Our data shows 70% of top web2 studios are now involved in web3, signaling a significant expansion of the market."
User Retention and Challenges
The report addresses user retention challenges unique to web3, including accessibility and market volatility, analyzing strategies from successful games like Pirate Nation and Yuga Labs’ titles.
Final Thoughts
Helika’s report illuminates the vibrant evolution of web3 gaming, offering crucial insights into current trends and future opportunities for developers and investors. For the full report, visit Helika’s website here.
