The GameFi sector is blazing a trail of recovery, with leading projects boasting consistent double-digit gains over the past several weeks. The digital realm, once characterized by volatility, is now witnessing a notable upswing, and the numbers don’t lie. According to the latest data from CoinGecko, half of the top ten GameFi projects have experienced a surge of more than 10% in the last week alone. Immutable (IMX) has emerged as the torchbearer, leading the rally with an impressive 35% surge, closely followed by Illuvium (ILV) at 27%, and The Sandbox (SAND) notching a commendable 12% rise over the past seven days.
In the broader scope of the last four weeks, both ILV and IMX have skyrocketed by over 100%, while The Sandbox has seen a formidable 52% increase. Not to be outdone, Axie Infinity tokens have also entered the spotlight, with AXS rallying 43% and SLP surging an astounding 70% since mid-October.
The GameFi sector’s market cap tells an equally compelling story, growing by a substantial 23% to reach $11.5 billion since October 3. Despite this recent momentum, however, it’s worth noting that four out of the five largest web3 gaming projects are still trading at a more than 95% discount compared to their all-time highs.
Web3 gaming, once relegated to the sidelines, is making a formidable comeback. A report by Game7, a consortium of web3 gaming developers and researchers, released on November 13, revealed that GameFi projects accounted for a significant share of web3 fundraising this year, amassing an impressive $1.5 billion in the first half of 2023.
The report also sheds light on the sector’s pivot towards Ethereum scaling solutions, with platforms like Polygon, Immutable, and Arbitrum playing host to a wave of new titles. Intriguingly, despite the growing dominance of Layer 2 solutions, 75% of newly released titles opted for the traditional Layer 1 approach.
However, the report emphasized a curious trend: while the number of web3 gaming titles is on the rise, only 5% of projects are fully hosted on-chain. Instead, a staggering 85% of games support on-chain assets such as NFTs and fungible tokens.
Diving deeper into the gaming landscape, a significant majority — 69% — of blockchain games are free-to-play, while 26% adopt a token-gated model, necessitating users to hold a specific NFT to access the game.
Despite the sector’s recent resurgence, the Game7 report cautioned that high-quality web3 games, classified as AA or AAA-rated, are still rare, constituting a mere 6% of the market. The majority, a whopping 94%, belong to the realm of “indie-level and midsize projects”.
For those eyeing potential investment opportunities in the GameFi space in 2023–24, market research suggests considering tokens like Fight Out, Tamadoge, Battle Infinity, Calvaria, Lucky Block, Axie Infinity, Enjin Coin, The Sandbox, Illuvium, Decentraland, Gala, ApeCoin, and Immutable X. These tokens have exhibited promising growth potential and are poised to be noteworthy candidates for investment.
As we traverse this dynamic landscape, the resurgence of GameFi tokens paints a picture of a sector in evolution, teeming with opportunities and challenges alike. It’s a testament to the ever-shifting nature of the crypto space, where resilience and innovation continue to drive progress. As we look toward the horizon, the GameFi resurgence may well be a harbinger of greater things to come in the intersection of gaming and decentralized finance.
If you enjoyed this article, see what cryptos I’m perhaps the most bullish on now and why: https://medium.com/crypto-currents/spotlight-on-near-the-ethereum-challenger-i-predicted-back-in-june-steals-the-show-in-q3-2023-cf48a8ed39ed
You can purchase and/or trade the above-mentioned GameFi cryptos on the MEXC exchange! https://www.mexc.com/register?inviteCode=15Jms
My blah blah blah disclaimer: I am not a financial advisor and cannot provide investment advice. Cryptocurrencies and investing, in general, involve risk, and individuals should conduct their own research and consider their personal financial situation before making any investment decisions.
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GameFi Tokens Spark a Resurgence in the Crypto Landscape was originally published in The Dark Side on Medium, where people are continuing the conversation by highlighting and responding to this story.