Oct. 9 2022, Daniel
Data Source: September 2022 GameFi Report (ENG)
After a late-summer rally, the crypto markets pulled back in September, bringing many metrics related to the health of the GameFi industry down with it.
On the other hand, the number of active GameFi users jumped, largely due to arcade app Arc8 on Polygon and, to a lesser extent, several smaller projects on BNB.
However, even well-performing projects in September did not see large increases in their token prices. The market cap of GameFi tokens continues to decline.
Overall Market
Financing & Investment
GameFi Volume & Users
Projects Overview
After sharply jumping to almost reach “greed” levels on the Fear & Greed Index in August, the index fell back to a state of extreme fear in September.
The price of Ethereum fell as the hype around The Merge died down — though this may be purely incidental; the S&P Index also had a sharp drop in the second half of the month.
The most striking data in September relates to investment and funding. It declined from $0.448B in August to $0.133B in September.
While the end of summer is a very difficult time to obtain funding (and thereby close deals in September) the gap between this year and last is too monumental to ignore. The collapse in funding will have trickle-down effects for studios, ecosystems and developers, who will likely be much more conservative this winter.
Polygon closed the gap with BNB, a gap which looked to be widening at an accelerated pace since the beginning of summer.
Active users for Arc8 increased to June numbers, but this did not reflect in the project’s token, GMEE, which was still around 20% lower than at the beginning of summer.
One of the biggest surprises of the month was the sharp growth in new GameFi users.
The logical question is, why did the volume decrease despite the number of new users increasing.
The two projects which drove the most new users in September were:
However, neither saw their tokens appreciate correspondingly. The price of GameFi tokens continues to drop, reflected by the general decline of GameFi token market cap.
As the macro-economic environment continues to become more and more challenging, September was a rough month for the GameFi industry.
Even strong user numbers did not guarantee increases in token prices, and investment in the sector has been cut to a small fraction of what it was months ago. In other words, if trends continue, finding sources of income to keep projects alive will be difficult. Unsurprisingly, there were almost no new GameFi projects launched — and no major ones.
This piece is contributed by Footprint Analytics community.
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