January Monthly GameFi Report

GameFi Monthly Report for January GameFi Monthly Report for January
GameFi Monthly Report for January

Cover/illustration via Cryptooshala

After a tough year, January has become the most favorable month for the crypto market. While most of what can be said applies to other bull cycles as well, some statistics have made January very interesting in the blockchain space.

For example, while altcoins tend to lag behind BTC in performance (first bitcoin season and then altcoin season), late January saw exceptional altcoin price performance, including at GameFi. This indicates that the market is strategically waiting for any signs of positive macroeconomic news to return to highly speculative crypto assets despite the carnage of 2022.

Investment in GameFi continues to dwindle, and it remains to be seen if the positive vibes will last long enough to revive VC interest in blockchain gaming projects. In January, more than half of the funding went to the GameFi infrastructure – while investing in specific games or studios is still a shaky proposition, venture capitalists are less cool about the GameFi industry.

The long-awaited AAA-level blockchain games have finally started hitting the markets, led by Illuvium beta, which is already seeing a lot of activity.

Key Findings

General overview of cryptocurrency

  • ETH rose from a low of $1,200 at the end of December to a high of $1,660, the best value for money in a year.
  • The value of many well-known altcoins has doubled or even tripled.

GameFi Users

  • The percentage of new users of total GameFi users dropped to 36% from 38.8% in December.
  • GameFi activity increased slightly in late December
  • However, the number of new GameFi users was the lowest since August 2022.

Overview of GameFi projects

  • Illuvium became the third largest active user of Ethereum even during beta testing.
  • The price of AXS has doubled and Axie Infinity’s transaction market share has grown.
  • Polygon GameFi users tripled between January 1st and 5th
  • Unlike other ecosystems, the number of BNB GameFi users has declined.

GameFi investment and funding

  • GameFi’s funding continued to fall, reaching an all-time low of $20.9 million.
  • 3 projects in the GameFi space received funding in January

Overview of crypto macros

The cryptocurrency market experienced its best month in about a year as the price of ETH surged from a low of $1,200 in late December to a high of $1,660 in January.

ETH price in January
ETH price in January

Equity markets also had a positive month. However, the January rise in the price of the ETH cryptocurrency was more significant than in other bull cycles of the past year, indicating a renewed interest in the cryptocurrency.

January turned out to be extremely favorable for the price of altcoins and, accordingly, the GameFi market.

For example, prices for the top three altcoins for GameFi — SOL, AVAX and BNB — rose in a month (on the 31st of the month) of 146%, 80% and 26.4%, respectively.

Altcoin prices in January
Altcoin prices in January

GameFi market overview

The percentage of new users in GameFi has dropped to 36%.

Monthly GameFi Users

Monthly GameFi UsersIn addition, the number of new GameFi users was the lowest since August 2021. This statistic continues the trend of several months, indicating that people are hesitant to return to the GameFi space.

At the end of December, the number of active GameFi users increased.

January Report 7D Active Gamers
January Report 7D Active Gamers

This coincided with a sharp rise in the price of Ethereum. Footprint Analytics considers an active user to be a unique wallet that interacted with the blockchain in the previous month. One person can have multiple wallets, but this metric is still a good indicator of the activity going on in the network.

Overview of GameFi projects

Even in beta, Illuvium ranks third among active Ethereum users.

Rating of games in Eth Chain

Rating of games in Eth ChainIlluvium is one of the most anticipated GameFi games and its token (ILV) is the most expensive GameFi token.

Axie Infinity has shown growth in its share of the transaction market, with its token price more than doubling in a month.

Axie Infinity Market share of transactions

Axie Infinity Market share of transactionsAxie Infinity became the first blockchain game to gain widespread recognition over a year ago. It is still the best blockchain game by volume.

The number of GameFi users on Polygon tripled between January 1st and 5th.

January GameFi Chains Active User Report

Most of these advances have come from Gamer’s Arc8 at Polygon. Other networks, namely Hive and Wax, have seen 50-100% MoM increases in this metric, albeit much more stable.

BNB Records Decrease in GameFi Users in January

January GameFi Active Users Report

January GameFi Active Users Report

GameFi investment and funding review

Despite GameFi’s positive performance, GameFi’s total funding was the lowest in over a year at $20.9 million.

Funding for GameFi projects
Funding for GameFi projects

Only 3 GameFi Projects Closed Funding Deals in January

January GameFi Funding
January GameFi Funding

They were: Intelli X, Oh Baby Games and YGG Japan. IntelliX creates a blockchain wallet for games and has closed $12 million. Web3 game studio Oh Baby Games has closed a $6 million seed round. YGG (Yield Guild Games) is one of the top gaming guilds in GameFi that has raised $2.9 million for its Japanese branch.

This article is provided by the Footprint Analytics community.

The Footprint community is a place where data and crypto enthusiasts from all over the world help each other understand and gain insight into Web3, the Metaverse, DeFi, GameFi, or any other area of ​​the nascent blockchain world. Here you will find active, diverse voices supporting each other and moving the community forward.

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