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Nearly $1 Billion Investment in Blockchain Games Proves Industry Not a ‘Fleeting Trend’: Playnance CTO
KEY POINTS
- Investments in April exceeded the figures recorded in the second quarter of 2023
- April data shows that people now see Web3 games ‘as a transformative force in the industry’: Roman Levi, CTO at Playnance
- True digital ownership is one of the defining features of blockchain games that attracts investors, Levi said
Blockchain gaming, a growing subsector in the broader Web3 industry, has seen success in recent months, especially in April, when nearly $1 billion in investment flowed into the growing space that has proven it has a place in the wide world blocks and games. knots.
In April 2024 by DappRadar Blockchain gaming report provided in partnership with the Blockchain Gaming Alliance, it was revealed that Web3 gaming saw investments of $988 million during the month of April, marking the highest monthly investment flow in the sub-sector since January 2021.
The report included a chart showing how significant the April data is, considering that the first quarter of the year saw slower investment inflows, only reaching a total of $287 million.
“This significant surge in investment in April has already surpassed the entire second quarter of 2023, which was the best-performing period of that year at $973 million,” the report notes.
Investments in April 2024 blockchain games eclipsed the combined numbers during the first quarter of the year. DappRadar
Aside from the huge investment numbers, blockchain games also achieved an average of 2.9 million unique daily active wallets (duAW), which represents 28% of the total dApp industry activity for the month.
In an exclusive email interview with International Business Times, Roman Levi, the CTO of Playnancea dedicated GameFi ecosystem running on PlayBlock, the leading Layer 3 blockchain solution on Arbitrum Orbit, shared its excitement about the latest developments in blockchain gaming.
To begin with, GameFi and Web3 games are related concepts, but they are not the same thing. GameFi, or “Game Finance,” is a combination of decentralized finance (DeFi) principles and gaming elements, while Web3 gaming is a broader description of the combination of blockchain technology and gaming.
For Levi, the huge investment in the blockchain gaming space in April “has been incredibly exciting and validating.” The dramatic shift in investment indicates that there is an increase in excitement around new technologies in the sector since investors have believed in the potential of Web3 gaming in 2021, driven by the rise of DeFi and non-fungible tokens (NFTs).
“This massive influx of money shows that investors truly believe in the future of blockchain gaming. It’s clear that this isn’t just a fleeting trend; people see Web3 gaming as a transformative force in the industry,” he said.
He said investors are attracted to some of the industry’s “extraordinary” features that ultimately highlight its potential, including “true digital ownership,” which gives players the ability to own, trade and monetize their own cryptocurrencies across various platforms . Investors find asset liquidity, which provides real value to gaming outcomes and purchases, to be a big deal, he said.
The P2E model that allows players to earn real-world value through their gaming activities is another attraction for investors. The engagement that comes with the model, as well as the opening of new revenue streams, attract investors looking for profitable opportunities.
Finally, a mix of gaming and finance that integrates liquidity pools, yield farming and staking attracts a wide range of investors who want to benefit from the merger of “these two rapidly expanding fields”.
Levi, who is an experienced cryptocurrency specialist with over 15 years of web development experience, believes there is huge potential for GameFi to become a leading sub-sector in Web3. With GameFi’s ability to blend an immersive gaming experience with the “economic benefits” imprinted on DeFi, the GameFi space is set to expand, especially as more players and developers embrace the core principles of Web3 technology. He also noted that real gameplay rewards, combined with the security and transparency offered by blockchain, increase user engagement and trust.
Community confidence has increased in recent weeks. In May, Web3 games reached a new milestone over 10 million duAW, marking a peak of 7% compared to the previous month and setting a new all-time high. Gaming dApps led the category, attracting 3.13 million duAW.
For Levi, the increase in financial support and cutting-edge technology around blockchain gaming, “it is only a matter of time before these fundamentals propel GameFi into its next big wave of innovative products.”
Despite the apparent interest of millions of players around the world in Web3 games, there has yet to be significant entry into the market by traditional, established game studios.
Levi believes that blockchain game developers play a key role in bringing gaming titans to the blockchain space. Smooth user experience comes first, as traditional studios prioritize user engagement and game quality. “Blockchain technology must evolve to offer seamless integration without compromising these aspects,” he noted.
Interoperability between different blockchain networks and traditional gaming platforms could also bring “old school studios” to market if they can easily integrate their existing systems with blockchain solutions that lower barriers to entry.
Regarding Playnance’s role in the GameFi space, Levi notes that PlayBlock, which powers the Playnance platform, leverages cutting-edge technologies such as zero-gas solutions, account abstraction, and high-end security features.
“Our platform offers true digital ownership,” and aside from UX benefits, Playnance offers economic opportunities for players that increase their engagement and loyalty. Playnance also actively seeks Web2 collaborations, assisting projects in the transition to blockchain gaming by providing infrastructure, tools and other related development support.
Leo Li, head of growth at data-sharing protocol and AI-powered gaming super app, he wrote in February that blockchain games are now “ready for the mainstream,” noting that Web2 games face multiple roadblocks that Web3 games can break down.
This readiness has been demonstrated by the success story of the leading Ethereum Layer 2 solution Immutable “Guild of Guardians,” which has had over one million pre-registered players and continues to gain popularity on Google’s Play Store.
In the innovative world of Web3, blockchain gaming developments, including the rise of GameFi, continue to demonstrate that when established sectors are strategically combined with emerging industries, there is potential for significant and undeniable growth.