The second quarter (Q2) of 2024 has demonstrated remarkable growth and significant milestones in the blockchain gaming sector, as detailed in a comprehensive report by DappRadar and the Blockchain Game Alliance (BGA). With investments in web3 gaming soaring to $1.1 billion, marking the best quarter since Q3 2022, the industry has seen a substantial increase in daily active wallets and a surge in blockchain activity.

This article summarizes key findings from the report, focusing on the essential metrics and trends that are driving growth in the sector. It highlights the crucial role of blockchain gaming within the broader web3 ecosystem and sets the stage for ongoing innovation and investment in this dynamic field.

Blockchain Gaming Report Q2 2024 by DappRadar and the Blockchain Game Alliance (BGA)

Key Takeaways

• Blockchain Gaming Dominance: The sector leads the web3 industry, representing 28% of all dapp activity with 2.8 million active wallets daily.
• Top Blockchain: Ronin leads as the top gaming blockchain, attracting 1.9 million new daily wallets, a 100% increase from the previous quarter.
• Emerging Winners: Immutable zkEVM and opBNB show remarkable activity increases of 715,136% and 80,459%, respectively.
• Leading Game: Pixels tops with 48 million unique active wallets this quarter.
• NFT Metaverse Decline: Trading volume dropped by 29%, and sales by 21%, with Mocaverse holding a 49% share in volume.
• Investment Surge: $1.1 billion was raised, marking the best quarter since Q3 2022 and a 314% increase from the previous quarter.

Blockchain Performance

The web3 industry experienced a notable increase in daily Unique Active Wallets (dUAW), reaching 10 million. This is a notable 40% rise from the previous quarter. Blockchain gaming contributed significantly to this growth, with 2.8 million dUAW, marking a 33% increase. This sector now accounts for 28% of the total dUAW in the web3 landscape.

Industry Dominance by UAW in the Dapp Ecosystem\

Ronin Blockchain Driving Growth

Key blockchains driving this growth included Ronin, which saw a 100% increase to 1.9 million dUAW, and Polygon, which rose by 28% to 1.5 million dUAW. NEAR also experienced a substantial surge, with a 98% increase to 1 million dUAW, while Klaytn recorded a 305% rise to 699,965 dUAW. Nebula, part of the SKALE Network, grew by 18%, reaching 585,526 dUAW.

In Q2, Ronin experienced a surge in activity due to new game updates and NFT releases. Key developments included the launch of Pixels Chapter 2, which introduced skill-based gameplay and tiered rewards. Additionally, Ragnarok: Monster World integrated with Ronin, and its NFT collection sold out rapidly. Wild Forest, a mobile RTS game, also achieved a successful NFT mint. Furthermore, Apeiron's $1 million Guild Wars tournament attracted substantial community engagement.

Top Gaming Blockchains

Summary of Growth Highlights

• Ronin: Achieved a 100% increase to 1.9 million dUAW.
• Polygon: Saw a 28% rise, reaching 1.5 million dUAW.
• NEAR: Nearly doubled its user base with a 98% surge to 1 million dUAW.
• Klaytn: Recorded a 305% increase to 699,965 dUAW.
• Nebula (SKALE Network): Grew by 18% to 585,526 dUAW.

Optimistic rollups and EMV-compatible chains are gaining traction, reflecting their rising popularity in the gaming industry. Please see the detailed image below for a more in-depth breakdown of which blockchains have gained the most traction in Q2 2024.

Top Gaming Blockchain Gainers

Gaming Performance

According to the data from DappRAdar, Q2 2024 was dominated by well-known blockchain gaming IPs. The top five web3 games by daily Unique Active Wallets (dUAW) were: Pixels, Matr1x, World of Dypians, Sweat Economy, and Another World.

Pixels and Matr1x Come Out Top by dUAWs

Pixels came out on top with 534k average dUAW, with Matr1x coming in second with 374k average dUAW. Matr1x recently unveiled the Matr1x Apollo Program, which will debut a premier collection of weapon skin NFTs within the Matr1x ecosystem. Additionally, the program includes a notable airdrop of 50 million MAX tokens.

Top 5 Web3 Games

Notable Gaming News 

Splinterlands, a prominent blockchain trading card game (TCG), marked its 6th anniversary with a significant community event and an extensive tournament from May 23rd to 31st. The event invited players to engage in celebrations, share memories, and participate in various exciting contests.

At the recent Solana Crossroads conference, Star Atlas revealed plans to launch its mobile app for both Android and iOS by the end of the year. This move aims to expand its reach and provide players with convenient access to its expansive interstellar gameplay.

Symbiogenesis, a story-driven web3 game developed by Japanese company Square Enix, successfully minted 1,500 NFT characters during a three-day auction. The NFTs were released on Arbitrum One on May 31st, with the public auction concluding on June 2nd.

Top Gaming NFT Collections

Established games such as Gods Unchained and Axie Infinity continue to lead in NFT collections by sales count. Notably, Guild of Guardians has gained popularity since its May launch on Google Play Store and AppStore, with Act 2: Guardians Unite released on 3rd July. Mainstream platforms like the App Store and Epic Games embracing blockchain games with NFTs indicate a positive industry shift.

Top Gaming NFT Collections

Metaverse Performance

The metaverse, a concept that surged in popularity about a year and a half ago, has recently seen a quieter phase. However, this reduction in noise does not imply that development has stalled; companies are actively working on building and expanding the metaverse behind the scenes.

Metaverse NFT Trading Volume and Sales

The metaverse sector, despite a decline in public interest, remains a promising area for future investment. Metaverse-based NFT collections recorded $43 million in trading volume and approximately 61,500 sales, representing decreases of 29% and 21%, respectively. Mocaverse stood out with a dominant 49% share of the trading volume.

Metaverse NFT Trading Volume and Sales

Top Metaverse NFT Collections

Supported by Animoca Brands, a major player in the metaverse space, Mocaverse benefits from substantial backing. Another Animoca project, The Sandbox, has recently attracted attention with the launch of its own decentralized autonomous organization (DAO). This initiative allows SAND and LAND holders to participate in governance decisions. Additionally, The Sandbox secured a $20 million investment at a $1 billion valuation in early June.

Another notable project in the metaverse is Puffverse, an immersive 3D environment centered around NFT characters and interactive experiences. Puffverse features its flagship game, PuffGo, a multiplayer royale party game incorporating Play-to-Earn (P2E) mechanics. Players can engage in various mini-games, customize their avatars, and earn rewards such as in-game tokens and NFT assets.

Despite the recent decrease in metaverse-related hype, important developments continue to emerge, suggesting that the metaverse narrative will remain significant in the near future. Please refer to the detailed image below for a detailed breakdown of the top-performing metaverse NFT collections according to DappRadar.

Tio Metaverse NFT Collections

Over $1 Billion Invested in Blockchain Gaming

April 2024 saw a notable investment of $988 million, marking the highest amount recorded since January 2021, at the beginning of the previous bull run. In May investment figures were down to $108 million across 17 deals. Despite the dip, this quarter (Q2) still ended the strongest since Q1 2021.

Q2 2024 marked a record quarter for blockchain gaming investments, with $1.1 billion raised—a 314% increase from the previous quarter. The focus of these investments has been on foundational development, particularly in gaming infrastructure and early-stage startups. 

Investments in Web3 Gaming and Metaverse Projects

Summary of Major Web3 Gaming Investments in Q2

AI + Metaverse

• The Sandbox: Secured $20 million in funding, achieving a $1 billion valuation.
• Param Labs: Raised $7 million to expand its Kiraverse metaverse project.
• Anomaly: Raised $1.45 million for its AI-driven Layer 3 gaming platform.
• Saltwater Games: Received funding from Animoca Brands to develop AI-driven games.
• Play AI: Raised $4.3 million, reaching a $70 million valuation.

Ecosystem + Platforms

• Bondex: Secured a strategic investment from Animoca Brands for Web3 LinkedIn.
• Redacted: Raised $10 million to build a Web3 entertainment ecosystem.
• NPC Labs: Raised $18 million, bringing its total funding to $21 million.
• Igloo, Inc. (Parent company of Pudgy Penguins): Raised $11 million.
• Farworld Labs: Secured $1.75 million for the Farcade platform.

Telegram + Tokens

• Ponchiqs: Raised $1.75 million following the launch of its PonchKick Telegram game.
• TOP: Invested in Akedo to develop Telegram games on the TON blockchain.
• Pixelverse: Raised $2 million after launching its Telegram game.
• Second World Games: Secured $3 million in a token presale.

Where are the Web3 Gaming and Metaverse Investments Going?

Other Significant Investments

1. a16z Gaming Fund: Andreessen Horowitz (a16z) raised $600 million for a dedicated gaming fund. The fund aims to support game studios developing innovative games, enhance game infrastructure for next-generation developers, and bolster the games consumer ecosystem, which includes consumer apps related to games.
2. Bitkraft Venture Fund: Bitkraft Venture raised $275 million to invest in early-stage gaming and interactive media companies. The funding will support the growth of emerging startups in these sectors.
3. Metaverse Projects: Significant investments were made in the metaverse space. Baby Shark Universe secured $34 million, while The Sandbox raised $20 million (as mentioned earlier in this report). These investments highlight the continued interest and growth in metaverse-related initiatives.

This quarter’s investment activity underscores a strong focus on supporting gaming startups with substantial funding and advancing metaverse projects, reflecting a strategic push to drive growth and innovation in the web3 gaming sector.

Final Thoughts

The promising metrics of Q2 2024 underscore the growing importance and potential of blockchain gaming within the web3 ecosystem. With substantial increases in daily active wallets and significant investments reaching $1.1 billion, the sector is poised for continued growth and innovation. The advancements in gaming technology, along with the strategic investments in infrastructure and emerging platforms, highlight a positive trajectory for the future.

Despite challenges in the metaverse space, confidence remains high, indicating a bright future for blockchain gaming and its role in driving web3 adoption. The findings of this report by DappRadar and the Blockchain Game Alliance (BGA) provide a solid foundation for anticipating further developments and successes in the industry. For a more detailed analysis, refer to the full report here.