Blockchain Game Industry Analysis Report November 2024

In November 2024, the Web3 gaming industry experienced significant growth, but still faces challenges in mass adoption strategies. With Bitcoin nearing the $100,000 milestone, the market value of the gaming sector surged by 79.1% to $35.1 billion. Despite daily active users reaching 5.5 million, the industry still has some issues with blockchain integration and popularization.

Macroeconomic Market Overview

In November, the cryptocurrency market performed impressively, with Bitcoin soaring from $69,386 to $96,427, an increase of 39.0%. Ethereum followed closely, climbing from $2,511 to $3,711, an increase of 47.8%. Bitcoin's market value surpassed that of silver and Saudi Aramco, maintaining its position as the seventh largest global asset after approaching the $100,000 mark on November 23.

The results of the US election have become a catalyst for growth in the cryptocurrency market, potentially impacting future cryptocurrency legislation and regulation. The market has reacted positively, particularly reflected in the performance of popular sectors such as memecoins, decentralized AI projects, and decentralized science.

The broader financial markets also performed strongly. The financial sector led the stock market under expectations of U.S. tax reform and deregulation. However, there was some volatility in international markets, with the Renminbi under pressure due to concerns about potential tariffs from the U.S., while gold prices fell as election-related uncertainties eased.

Blockchain Game Market Overview

In November, the market value of blockchain gaming tokens surged from $19.6 billion to $35.1 billion. The daily trading volume increased by 79.4% to $11.9 million. Daily active users reached a record high of 5.5 million, an increase of 15.7% compared to October. This growth is primarily attributed to the sustained user activity on opBNB and the solid performance of the Ronin ecosystem.

The trading indicators present complexity. The average daily trading volume reached 15.3 million transactions (a 3.3% increase from October), but the average number of transactions per user decreased from 3.131 to 2.810. The total monthly trading volume remains stable at 460.4 million transactions, and data indicates that the intensity of new users' usage of Blockchain features is on the decline.

Some gaming applications of blockchain technology may represent a critical turning point for the industry. By positioning themselves as traditional games with optional blockchain elements rather than "NFT games," it reflects that widespread adoption may require a more nuanced integration of blockchain technology. This strategy of "making blockchain functionality optional and invisible" helps to overcome many gamers' initial resistance to cryptocurrency, reducing friction, but it also raises fundamental questions about the role of blockchain in gaming.

The technical challenges faced by the entire blockchain gaming ecosystem remain significant. Existing blockchain infrastructure struggles to meet the high throughput demands of real-time gameplay, competitive matchmaking, and modern gaming. Although Layer 2 solutions and dedicated gaming blockchains are emerging, the gap between traditional gaming performance expectations and blockchain capabilities continues to affect development strategies.

Blockchain Game Public Chain Overview

In November, the number of active games on the Blockchain network reached 1,696, an increase of 4.6% compared to October. In terms of game distribution, the market leaders remain BNB Chain, Polygon, and Ethereum, with shares of 20.9%, 15.4%, and 13.4%, respectively.

The growth momentum of opBNB continues, with a 46.1% increase in average daily active users (DAU) compared to October. This growth is mainly driven by its flagship games SERAPH: In The Darkness and MEET48, while the platform also benefits from projects migrating from the BNB chain.

Ronin has shown a significant recovery, with DAU doubling from 600,000 to 1.2 million in November, thanks to new partnerships that brought in multiple game studios, the launch of the new game Fableborne, and a resurgence in the number of players for the existing game Lumiterra.

The TON gaming ecosystem is facing challenges, with DAU dropping by 41.9% to 116,400, highlighting the on-chain retention challenges for games based on Telegram. However, Sui's average DAU in November was 233,300, a 23.1% increase from the previous month. The Telegram game BIRDS contributed most of the user base, with an average DAU of 224,900, and its weekly new user retention rate can be considered a model in the current blockchain gaming industry.

The Web3 gaming industry still coexists with challenges and opportunities. More industry participants are getting involved in the blockchain gaming infrastructure, and more gaming public chains are emerging. A well-known Web3 gaming guild has launched its Studio Chain, building its own gaming infrastructure.

At the same time, B3 launched the Open Gaming Layer, and Prime Chain is the first blockchain it has introduced. Developed by the Echelon Prime Foundation, Prime Chain will provide infrastructure and development power for the ambitious sci-fi card game Parallel.

Blockchain Game Overview

As of the end of November, there are a total of 3,602 blockchain games in the industry, of which 1,361 are actively participating. Among these games, 298 have attracted more than 1,000 monthly active users (MAU), accounting for 21.9% of active games.

Analyzing the Telegram gaming metrics, we can see a significant gap between platform users and blockchain participation. As of November 30, Hamster Kombat ranks second in monthly active users among Telegram games, with 26.16 million MAU, but its on-chain users are only 736. Even MemeFi, which achieved the highest conversion rate among the top 10 games, has an on-chain participation rate of only 7.96%, with 1.36 million TON users.

Despite facing these transformation challenges, the success of the Telegram gaming ecosystem is inspiring broader imitation by social media platforms. As a messaging platform dominated by Japan, Taiwan, Thailand, and Indonesia, a well-known social application announced plans to launch 30 mini dApps by the end of January, expanding to 150 by the end of the first quarter of 2025. These mini dApps will be built on the Kaia Blockchain, with gaming applications making up the largest portion, alongside social and DeFi applications.

At the same time, the Solana-based project Sonic X has integrated over 1 million KYC-verified users through a short video platform. The platform's success stems from its seamless onboarding process. Users can access the game directly through their short video accounts, while the Solana wallet is automatically created in the background. This achievement showcases the potential of short video platforms as entry points for Web3 gaming.

Blockchain Game Investment and Financing Situation

In November, Web3 games secured 18 funding rounds, totaling $73.6 million. Although the number of events increased by five compared to October, the total amount decreased by 22.3%. Additionally, eight events did not disclose specific funding amounts.

Monkey Tilt leads this month's funding with a $30 million Series A round, led by a well-known investment firm. The platform combines gaming, entertainment, and betting features, achieving a monthly betting volume of $200 million since its launch in March. The platform includes social features such as in-game chat and user tipping, but due to regulatory reasons, it is still unavailable in major markets like the United States, the United Kingdom, and Australia. Despite regulatory challenges, the betting sector continues to attract attention, with FanDuel, BRKT, and BoxBet also securing funding.

Other notable financing news includes a well-known blockchain gaming company adding an investment of $10 million to its previous investment of $31.88 million in Mocaverse. This investment includes warrants to acquire MOCA Coin tokens at a fully diluted valuation of $1 billion, supporting Mocaverse's further development of interoperable infrastructure for mainstream cryptocurrency adoption.