Blockchain Gaming Dominates Web3 as Crypto Sector Faces Regulatory Turbulence: Report

Blockchain Gaming leads the sector with a market dominance of 37 percent in Q2 2023.

Written by Radhika Parashar, Edited by Manas Mitul | Updated: 11 July 2023 14:43 IST

Blockchain Gaming Dominates Web3 as Crypto Sector Faces Regulatory Turbulence: Report

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Blockchain gaming allows players to have complete ownership of their in-game purchases

Highlights

Asia is an emerging market for blockchain gaming
Blockchain gaming makes the experience more virtually immersive
NFT sector has recorded a notable slide between April and June this year

Governments from around the world, as well as law enforcement agencies, are tuning up their oversight on the crypto sector. Amid regulatory upheaval shaking up the crypto world, blockchain gaming is holding a solid ground. A recent quarterly industry report by DappRadar said that the sector of blockchain gaming is the most dominating element of the Web3 world, almost unfazed by ongoing market turbulences. Out of the total dApp market, blockchain games controlled 37 percent share between April and June this year.

Blockchain gaming is increasingly garnering community members as not only does it let Web3 elements like NFTs make for a more immersive experience, but it also gives the gamers complete ownership of the in-game assets they purchase. These assets could be 3D props, apparels as well as virtual tools and weapons, which can be traded or rented by gamers to help them churn funds.

As per its report, DappRadar said that the dominance of blockchain gaming on the overall Web3 sector was 45 percent between January and March this year and recorded only a slight slip in the second quarter of this year.

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“Data suggests a dynamic industry adapting and responding to new challenges and opportunities in the blockchain space. In Q2 2023, daily Unique Active Wallets (dUAW) engaging with dapps on-chain witnessed a 7.97 percent uptick from the previous quarter. This increase may be interpreted as an encouraging sign of market recovery. The increase in dUAW signals continued user engagement and adoption of dapps. The gaming sector holds its dominance,” DappRadar noted in its fresh report.

In fact, blockchain gaming has also emerged among the fastest growing tributary of Web3 with the number of active users on decentralized gaming platforms having increased by 500 percent between 2018 and 2020.

In Asia, the craze of blockchain gaming is growing exponentially by the day, catching the attention of industry players.

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Asia's gaming community generates the maximum chunk of revenue in the industry. In its previous research report, DappRadar said the Asian nations of India, China, Japan, and South Korea collectively have over 1.7 billion video game players.

Just last month, China's Alibaba Group landed a partnership with Switzerland-based Near Protocol to offer blockchain developers assistance to build games on decentralised networks.

To compare the strong performance of blockchain gaming over other Web3 sectors, the DappRadar report said DeFi protocols have recorded a seven percent loss from last quarter.

Owing to the SEC's scrutiny over crypto players in the US, along with regular hikes in the interest rates, the digital assets market — which includes cryptocurrency as well as NFTs — did witness a notable slide.

As per DappRadar, the NFT market alone plummeted by 38 percent between March and April this year, which could be because of the ongoing volatility in the sector.

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Further reading: Cryptocurrency, Blockchain Gaming, Web3, DappRadar

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More