Immutable, a Layer-2 scaling solution for Ethereum designed to streamline NFTs and gaming economies, continued its mission in Q2 2024 to improve scalability, user experience, and cost-efficiency for web3 developers and users. Utilizing zk-rollup technology and the advanced zkEVM, Immutable has built a notable foundation for web3 gaming and decentralized applications (dApps), minimizing fees and improving transaction speeds without compromising security. Despite a volatile market, Q2 saw substantial growth in user engagement on Immutable’s zkEVM network, according to data from Messari.

Growth in Immutable zkEVM Activity Amid Market Decline

More About Immutable?

‍Immutable is a leader in web3 gaming "on a mission to bring digital ownership to every player by making it safe and easy to build great games with blockchain technology". The Immutable platform makes it easy for game studios and independent developers to safely and confidently build and launch successful games on the Ethereum blockchain.

The product suite includes pre-built solutions, optimized for usability, that help developers get to market faster without sacrificing security or player experience. Builders get personalized web3 guidance, live support for their communities, and access to the largest ecosystem in gaming.

Immutable Key Metrics Overview

Key Insights and Performance Overview

In Q2 2024, Immutable zkEVM, a platform enabling high-volume, low-cost transactions for web3 gaming, witnessed exponential user activity. Daily active addresses surged by 91,900% quarter-over-quarter (QoQ) to 282,500, while daily transactions rose by 14,500%, reaching 792,000. This growth was largely attributed to Immutable’s release of the Dedicated zkEVM chains, allowing game studios to utilize customized blockchain solutions.

The Main Quest Rewards Program also offered up to $50 million in incentives for users which helped drive growth. These initiatives increased zkEVM’s appeal, drawing attention from game studios interested in zkEVM’s scalability and reduced computational overhead, which is critical for supporting high transaction volumes within games like Pixelmon, Illuvium, and Guild of Guardians.

Immutable zkEVM Dail Active Addresses

Mixed Performance and User Trends

While Immutable zkEVM attracted increased participation, Immutable displayed a contrasting performance with a 37% QoQ decline in daily active addresses, falling from 21,000 to 13,000, and a 34% decrease in daily transactions, from 229,000 to 151,000. Nonetheless, daily NFT buyers on Immutable grew by 56%, from 1,500 to 2,300, while daily sellers increased by 18%, from 1,700 to 2,000.

Competitive NFT pricing and popular collections like Guild of Guardians, which generated $11 million in sales in May, contributed to this buyer growth, even as overall daily NFT sales declined 6.6%, from $600,000 in Q1 to $560,000 in Q2. The changes point to an increasingly competitive NFT market with a greater number of buyers seeking lower-priced NFTs.

IMX NFT Buyers and Sellers Increased 56% and 18% QoQ

Strategic Developments and Partnerships

Launch of Immutable Nexus and ERC-1155 Support

Immutable’s interconnected ecosystem, Nexus, was launched in Q2 2024 to support game studios with consistent blockchain functionality, enhanced security, and liquidity across multiple chains. Nexus integrates both public and dedicated zkEVM chains, providing game developers with a cohesive environment for building on zkEVM. Further supporting developers, Immutable added ERC-1155 token standard support on June 25, allowing the creation of both fungible and non-fungible tokens within a single smart contract—a significant update for managing complex in-game assets.

The Main Quest Rewards Program

To drive user engagement, the IMX Ecosystem Foundation introduced The Main Quest rewards program, allocating up to $50 million in incentives. Launched on April 25, this program encourages players to complete quests, engage with games, and collect digital assets within the Immutable ecosystem, featuring prominent projects like Guild of Guardians, Illuvium, Space Nation, and Metalcore. Players register with Immutable Passport to participate, though certain regional restrictions apply.

Key Partnerships with GAM3S.GG and Spielworks

In Q2, Immutable formed strategic partnerships aimed at broadening its web3 offerings. On April 6th, a partnership with GAM3S.GG introduced key Immutable functionalities like Immutable Passport and Checkout to our GAM3S.GG platform, enhancing utility for gamers. In another collaboration, announced on May 21st, Spielworks’ Wombat platform and AtomicHub marketplace integrated with Immutable’s zkEVM and Immutable Passport, expanding user engagement and providing additional rewards for Immutable-based games.

Financial and Market Performance

Despite increased user activity on both Immutable and zkEVM, the IMX token’s market cap dropped 50% QoQ, from $4.4 billion to $2.2 billion, and its price declined 53%, from $3.1 to $1.45, mirroring trends across the broader altcoin market. IMX’s market cap rank fell from 29th to 39th. Additionally, token unlock events on May 5 released nearly 10 million IMX tokens, further affecting circulating supply and price in a challenging market environment.

Immutable X Daily Active Addresses Fell 37%

Qualitative Analysis and Future Outlook

The quarter was marked by growth in zkEVM activity, with the network’s daily active addresses seeing a dramatic increase and new partnerships enhancing functionality. Immutable Nexus and ERC-1155 support offer developers more flexibility in asset management, while partnering with us at GAM3S.GG and Spielworks signal efforts to expand Immutable’s reach within the web3 gaming community.

However, as the broader market’s contraction impacted IMX’s valuation, it underscores the challenges within the volatile cryptocurrency sector. Immutable’s Q2 2024 results reveal a strong performance in driving user engagement through zkEVM, a focused development ecosystem with Nexus, and a high-value rewards program. Future growth will depend on sustained user interest, broader market conditions, and Immutable’s ability to foster innovation in the web3 gaming space.

Source: Messari