Is the 30 billion Crypto-gaming industry sustainable?

As an analyst with a background in both traditional gaming and blockchain technology, I believe that the blockchain gaming industry has immense potential to garner widespread attention and global adoption despite its inherent challenges. However, it is essential to acknowledge the current state of affairs and address the unsystematic issues that hinder growth.


“What strategies could be employed for the blockchain gaming industry to gain broad recognition and universal acceptance, notwithstanding its intrinsic difficulties?”

Although the number of gamers adopting blockchain technology for gaming has grown significantly, there is still a significant gap between the reception of blockchain games compared to conventional ones. Surprisingly, this cutting-edge development has faced notable delays in gaining traction despite the industry’s market capitalization surpassing $30 billion in June this year.

These projects including Axie Infinity, GALA, The Sandbox, and Decentraland experienced significant expansion during the 2021 bull market. However, their growth has since diminished, with weekly active user numbers falling below the 100,000 mark. For example, Axie Infinity reached a peak of 50,000 weekly users in 2024, a significant decrease from the over 700,000 weekly users recorded in November 2021.

All-time unique active wallets on Axie Infinity (Image: Dapp Radar)

In this article, we explore the reasons behind the sluggish acceptance of blockchain gaming and the lack of a universally acclaimed Web 3 game, in spite of their potential benefits such as rewards, motivations, and monetary prospects for players.

Drawbacks To Global Adoption of Blockchain Games 

In the realm of Web 3 gaming, numerous obstacles surface that transcend various aspects. These hurdles encompass scalability issues, intricate technological demands, international marketing complications, and regulatory concerns. However, this article intends to shed light on the less predictable challenges that projects must address in order to distinguish themselves within the competitive Web 3 gaming landscape. In essence, we’ll explore the unique roadblocks requiring creative solutions that set successful initiatives apart from their peers.

As a researcher studying the challenges and solutions in the crypto gaming sector, I’d like to highlight two persistent issues that new and experienced platforms encounter: development constraints and the need for advanced gaming features similar to those found in conventional games. In addressing these hurdles, let us explore how Chromia and Azarus are making strides within the Web 3 space to simplify blockchain game development for consumers and enhance the gaming experience for players.

  1. Development Constraints and Limited Network Effects

As a crypto investor with an interest in blockchain gaming, I’ve noticed that developing games on this technology comes with its own set of challenges that differ from creating traditional games. Here are some of the hurdles blockchain game developers face:

As a gaming analyst, I’ve observed that early-stage projects in this field often face hurdles due to a small player base and restricted network effects. These issues can significantly affect the application’s overall acceptance. It is crucial to note that blockchain gaming, much like any other gaming title, thrives on an active and engaged community, along with consistent interaction among players. Building such a community could prove to be the most significant challenge for many platforms in the long run.

Overcoming these challenges can be achieved by establishing user-friendly and efficient gaming development hubs, which enable creators to unleash their imagination without encountering the intricacies of blockchain technology. However, it’s crucial for blockchain games to deliver immersive and enjoyable experiences to players, drawing in larger audiences and fostering collaborative engagement as well as healthy competition within the gaming community.

Potential Solution: Chromia 

As a researcher studying Chromia, I’d describe it as a groundbreaking Layer-1 relational blockchain solution designed to tackle developmental hurdles through a versatile modular framework. This framework empowers creators to develop intricate, on-chain games with ease. Chromia provides a comprehensive gaming infrastructure center where developers can construct enjoyable and interactive Web 3 games. The platform facilitates the implementation of on-chain logic while offering advanced NFT functionality. Developers maintain complete control over their projects, enabling adaptable fee structures and more scalable DApps.

My Neighbor Alice, a decentralized multiplayer game where users can discover new lands, collect resources, and create exclusive NFTs, debuted on the platform in February. This innovative game paves the way for expanded user-generated content, enabling players to shape the game’s development. Players will be actively involved by producing custom content such as personalized avatars, clothing items, accessories, and unique experiences.

As a researcher exploring the gaming industry, I’ve discovered an intriguing aspect of many modern games: the ability for players to trade in-game assets amongst themselves. This feature not only fosters stronger community bonds but also increases collaboration within the game’s ecosystem. By utilizing platforms like Chromia, developers can bypass certain limitations, ultimately allowing them to create more imaginative, cooperative, and immersive gaming experiences for their player base.

  1. Lack of Enhanced Gaming Capabilities 

One major hurdle for blockchain gaming has been subpar user experiences in comparison to conventional games. Playing a blockchain game might have left you feeling underwhelmed by its basic design and limited excitement.

From my perspective as an analyst, while blockchain games offer novel features such as decentralized ownership and cryptocurrency rewards, they currently fall short in delivering an engaging gaming experience comparable to traditional titles. To retain players, it’s essential to enhance the gameplay itself with captivating mechanics and additional functionalities that motivate prolonged participation beyond mere token earnings.

Enhancing the game with extra features could motivate more players to transition to Web 3 gaming and strengthen the competition between this emerging sector and conventional gaming platforms.

Potential Solution: Azarus 

Azarus, now owned by Animoca Brands, is a groundbreaking platform that empowers users with advanced features for their streaming experiences. With the gaming industry shifting towards streaming services, Azarus steps up to fill a significant gap in the crypto gaming sector by introducing innovative streaming functionalities within the ecosystem.

Azarus teamed up with Stream, a leading platform for live, interactive streaming. Together, they’re working to boost interaction between digital content creators, particularly gaming streamers, and their audiences. By incorporating advanced interactive features into multiple streaming platforms, game broadcasters can now host interactive games directly in their streams. This keeps viewers engaged and facilitates stronger connections between brands, content creators, and gamers with their fans.

Streamers receive compensation when they introduce a game, while viewers have the opportunity to acquire $AZA tokens by engaging in gameplay. These tokens can be exchanged on the Azarus marketplace for over 1,500 gift cards from retailers such as Netflix and Amazon, alongside newly released games.

Lastly, the platform simplifies the intricacies associated with blockchain systems by providing a user-friendly email registration process, eliminating the need for a wallet and passphrase.

Final words

Blockchain gaming is predicted to significantly expand within the crypto sphere over the next ten years, potentially serving as a driving force for widespread cryptocurrency adoption. Nevertheless, the continued expansion of this industry hinges on game developers producing entertaining and engaging blockchain games that generate worthwhile experiences for players.

The full capability of blockchain gaming will be realized by enhancing the user experience, providing superior game development platforms, and incorporating in-game features that foster stronger gamer communities.

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2024-06-19 15:35