The report focuses on the gaming market sector in the crypto space, specifically onchain games. These games utilize smart contracts to merge gaming with features native to the blockchain, such as interoperability with other gaming environments, secure and decentralized game data storage, and more. The gaming dashboard currently features 6 projects within the gaming market sector. The aggregated fully diluted market cap of the gaming market sector dropped by 37% over the last 90 days. Axie Infinity, which represents ~60% of the total market cap in this sector, has dropped from $2.3b to $1.6b over this period. Onchain games are more popular on Polygon and BNB Chain than on Ethereum due to their high throughput, low gas environments.
- Monitor the performance of onchain games: The report highlights the significant drop in the fully diluted market cap of the gaming market sector. It’s crucial to keep an eye on the performance of these games, especially those that hold a significant share of the market, like Axie Infinity.
- Consider the impact of blockchain environments on onchain games: Onchain games are more popular on Polygon and BNB Chain than on Ethereum due to their high throughput, low gas environments. This could influence the choice of blockchain for future onchain game developments.
- Explore the potential of app-chains for onchain games: The report anticipates more onchain games to launch on their own app-chains, like Ronin Network for Axie Infinity. These app-chains allow the game to customize its network according to specific needs, such as accommodating higher throughput, significantly lowering gas fees, and more.