Analytics platform Helika, in collaboration with Pantera Capital, has released a comprehensive report on the state of web3 gaming. According to the report, web3 games amassed over $160 million between February 2023 and February 2024. A notable highlight is the surge in weekly gaming transactions, which exceeded 200,000 across various blockchain networks throughout 2023.

State of the Web3 Gaming Nation

State of Web3 Gaming

Helika's report delves into multiple facets of the web3 gaming ecosystem, including play-to-airdrop campaigns, on-chain royalties, and the integration of AI in game development. It emphasizes how AI is enhancing game development speed and creating more immersive experiences for players.

Over $160 Million in Funding Between 2023 and 2024

Despite a bearish crypto market for much of 2023, web3 games have demonstrated robust private market fundraising. A total of $162 million was raised by 25 ventures, with an average funding round size of $65 million.

$162 Million in Funding

Gaming Airdrops Generate Over $500 Million in Value

In the past year, top web3 gaming titles have conducted play-to-airdrop campaigns, resulting in more than $500 million in combined circulating market cap being distributed to various communities.

Over 200,000 Weekly Gaming Transactions Across Chains

Developers are increasingly utilizing Layer 2 solutions and alternative Layer 1 blockchains due to their high transaction speeds and low fees. Games like Pirate Nation have reached up to 9 million total transactions, with weekly peaks of 500,000. This level of throughput is achievable only on alternative chains.

TPS and TVL by Chain

AI Reduces Game Development Costs by Up to 30%

AI is becoming crucial in web3 game development, from innovative game mechanics to balancing gameplay for improved player retention and monetization. By automating LiveOps, design tasks, and repetitive development processes, AI enables smaller teams to pursue more ambitious projects, reducing development costs by up to 30%.

Over 70% of Leading Web2 Game Studios Exploring Web3

A significant number of established web2 game studios are making strides in exploring web3. Renowned names such as Zynga, Ubisoft, and Square Enix are among the 29 out of 40 top studios by market cap that are either actively developing web3 projects or have dedicated divisions for research.

CCP Games and Zynga Case Studies

Insights from Helika CEO Anton Umnov

The report also provides detailed analytics on different ecosystems, such as Polygon and Arbitrum, showcasing their unique contributions to the web3 gaming landscape. Anton Umnov, Helika's CEO and co-founder, expressed enthusiasm about the increasing activity within web3 gaming.

"The most exciting opportunity showcased in this report is the number of transactions happening in web3; our data shows that more than 200K weekly transactions are occurring across chains, with peaks at 500K weekly transactions.

Arbitrum High Throughput

Umnov added: "This highlights the growing diversity and choice for studios building in web3, allowing for greater flexibility and innovation. It reflects a future where interoperability and multi-chain functionality become standard, enhancing the ecosystem’s robustness."

User Retention and Challenges

The report also addresses user retention, noting the challenges in comparing web3 and web2 retention rates due to differing factors such as accessibility, community engagement, and market volatility. It examines various retention strategies across notable games like Pirate Nation and Yuga Labs’ titles. Umnov highlighted a significant trend of major web2 studios exploring the web3 space.

"Our data suggests that 70% of top web2 studios are exploring the web3 space, with industry leaders such as Square Enix and Ubisoft among them. This transition represents a significant opportunity to expand the total addressable market (TAM) of web3."

Web3 Games Raise $160M Amidst 200K Weekly Transactions

Umnov added: "Helika is uniquely positioned to facilitate this shift through our comprehensive suite of data and game management products, alongside our strategic partnerships with various chains. This not only supports studios in their transition but also drives the growth and evolution of the entire industry."

Final Thoughts

Helika’s report underscores the dynamic and rapidly evolving nature of web3 gaming, offering insights into current trends and future potential, thus serving as a valuable resource for developers and investors alike. You can read the full report on Helika’s website here.