Report Reveals NFT Gaming Generated $2.3 Billion in Q3 Alone

December 23, 2021, 10:00 AM AEST - 3 weeks ago

A report published by the blockchain game alliance (BGA) shows that non-fungible token (NFT) games generated billions in revenue in the third quarter and generally saw remarkable growth throughout the year.

According to the report, the third quarter of 2021 was dominated by NFT gaming, with 2.5 million Unique Active Wallets (UAWs) connected to blockchain dApps on average “making blockchain games responsible for half of all blockchain usage”.

With the surge in NFT games, the sector accumulated US$2.32 billion in revenue between July and September, representing 22 percent of total NFT trading volume industry-wide for that period.

The report also cited DappRadar’s data showing a 6,566 percent increase in daily UAWs interacting with game-related smart contracts, rising from 23,100 in Q3 2020 to 1.54 million daily in Q3 2021. However, UAW numbers do not translate to unique users, since a single individual might use multiple wallets to interact with a single dApp.

The Metaverse Raking in Digital Dollars

The metaverse has drawn much attention since a few major names in the tech industry mentioned they were dipping their toes in. The industry was also fuelled by virtual land sales that hit US$42.6 million and are continuing to grow; the market cap for virtual world dApps reached a new all-time high, surpassing US$4.6 billion at the end of November.

Blockchain gaming has firmly established itself as the industry’s darling. With the consumer growth participating in blockchain games, dApp and gaming trends will come together into something even bigger and potentially all-encompassing: the metaverse.

Dragos Dunica, co-founder, DappRadar

Recently, venture capital firm Galaxy Interactive raised US$325 million to focus on gaming startups and interactive technology. The spark of interest hasn’t just been for investors, but also the general public. As the year moved on there was a noticeable increase in web searches for the terms “metaverse” and “play-to-earn”.

Online mentions of metaverse, play-to-earn and NFT. Source Meltwater

The Issue with NFT Games

According to those working in the industry, many of the current challenges faced in the industry are caused by:

  • regulatory uncertainty;
  • the need for user education;
  • technology limitations;
  • poor user experience; and
  • gameplay quality (or lack of).

The majority of respondents (52 per cent) stated that regulatory uncertainty was their biggest concern and the industry’s most significant challenge, since in-game assets – if not structured properly – can be treated as securities under some laws and could cause unwanted complications.

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