Research Summary
The report discusses the rise of Web3 gaming, focusing on the performance of Bitcoin and other cryptocurrencies, the impact of artificial intelligence (AI) on crypto projects, and the growth of the Solana ecosystem. It also highlights the increasing interest in gaming tokens and the potential of blockchain gaming. The report further examines the performance and prospects of three major blockchains focused on Web3 gaming: Ronin (RON), ImmutableX (IMX), and Avalanche (AVAX).
Key Takeaways
Strong Performance of Bonds and Stocks
- Impressive Rally in November: The report notes that November was a strong month for the Bloomberg U.S. Bond Aggregate Index, which saw its best performance (+4.53%) since May 1985. The S&P 500 also rallied by 9.1%, marking its best month since July 2022 and reversing three months of losses. This resulted in November being the best month for a global 60/40 portfolio since November 2020.
Bitcoin’s Strength Amid Hype and Substance
- Bitcoin’s Performance: The report highlights Bitcoin’s strength year-to-date, especially in the last week, attributing it to multiple catalysts ranging from the regional banking crisis to Ordinals, and the inevitable ETF. It also notes that some hype is present, as seen by the CME futures basis reaching 25% annualized.
Web3 Gaming’s Growing Popularity
- Rise of Web3 Gaming: The report discusses the significant debate around gaming integrated with web3 since the rise of Axie Infinity. It notes that many projects have released reskinned versions of Axie Infinity with minor tweaks to its ‘play to earn’ model. The report also mentions the entry of developers from traditional gaming studios into the space, raising money and releasing tokens for new game studios.
Performance of Major Blockchains in Web3 Gaming
- Focus on Ronin, ImmutableX, and Avalanche: The report examines the performance and prospects of three major blockchains focused on Web3 gaming: Ronin (RON), ImmutableX (IMX), and Avalanche (AVAX). It provides detailed insights into their current statistics, technology, target market, user acquisition strategies, marquee games, and relative valuation.
Web3 Gaming’s Potential in the Gaming Market
- Growth of the Gaming Market: The report points out that gaming is a growing market, estimated to generate $249 billion in revenue worldwide, representing 11.8% year-on-year growth. It also notes that worldwide gaming revenue is expected to have a compound annual growth rate of 9.32% between 2023 and 2028.
Actionable Insights
- Understanding the Dynamics of Web3 Gaming: Stakeholders should familiarize themselves with the dynamics of Web3 gaming, including the role of blockchain technology, the impact of artificial intelligence, and the potential of gaming tokens. This understanding can help them make informed decisions about their involvement in this emerging sector.
- Monitoring the Performance of Major Blockchains: Stakeholders should keep a close eye on the performance and prospects of major blockchains focused on Web3 gaming, such as Ronin, ImmutableX, and Avalanche. This can provide valuable insights into the trends and opportunities in the Web3 gaming space.
- Exploring the Potential of the Gaming Market: Given the growing revenue and expected compound annual growth rate of the gaming market, stakeholders should explore the potential of this market and consider how they can leverage Web3 gaming to tap into this growth.
