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What’s changed in GameFi in the last month? – July Report

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What’s changed in GameFi in the last month? – July Report

What’s changed in GameFi in the last month? – July Report Footprint Analytics · 2 hours ago · 7 min read

When will the GameFi sector see a “second growth curve” and a sustainable X to Earn model?

7 min read

Updated: August 10, 2022 at 9:36 am

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Image via Footprint Analytics

While the previous bull market saw hundreds of play-to-earn games launched, only a few were able to maintain a steady user base as the market declined. This became apparent in July, when activity continued to fall.

However, the trying market conditions also highlighted the handful of titles that managed to stand out. Splinterlands is one of those projects, retaining users thanks to its low barrier to entry, simple gameplay, and fast battle speed. Axie Infinity also continued to introduce new features to regain momentum.

Footprint Analytics data shows the overall performance of the GameFi sector in July.

  • The total number of users decreased by 21% MoM, and the growth of new users was weak.
  • Transaction activity was down 55% MoM and 737% YoY.
  • The number of projects had a MoM growth of less than 2%.
  • VC financing increased by 17% MoM and 126% YoY.

GameFi Market Overall Market Analysis

GameFi project count grew less than 2%, and new project growth in BNB lagged

Less than 80 GameFi projects were launched 3 consecutive months up to July 31. As evident in the chart, all chains saw stagnant growth (although Polygon and WAX are slightly up.)

Footprint Analytics – GameFi Protocols

Gamers pay more attention to the playability of the game and the smoothness of the network experience and have extremely high requirements for the network. On the ethereum chain, you need to pay high gas fees at every turn. When encountering the problem of on-chain congestion, it can bring players a very bad experience. Therefore, these issues are a priority for development teams creating new projects.

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Footprint Analytics – Gas Used On Chain

New projects on Ethereum face high fees and congestion, which has led to more projects moving to BSC (now BNB) since July 2021.

This has led BNB to attract a high volume of games that fail to retain users—indicating high quantity, and low quality.

Footprint Analytics – BSC GameFi Tracker
Footprint Analytics – Ethereum GameFi Tracker

Compared to both chains, Polygon has presented a faster solution with the cost per transaction is about 10,000 times lower than Ethereum, and the transaction speed is up to 7000 tx/s.

GameFi Web3 category accounts for 98% of GameFi’s total funding

With the rise of the Web3 concept in the blockchain, newer scenarios and requirements are introduced into the game industry.

Compared with June, GameFi financing activity gradually recovered in July, increasing by 17%. In terms of funding categories, with the development of blockchain technology, more and more investment funds are injected into Web3-type GameFi, among which Web3-type funding accounts for 98%.

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Footprint Analytics – Gaming Financing Distribution

Web3 has entered the public eye since November last year. It wasn’t until after April that Web3 became the focus of the crypto market. And recently, Animoca Brands announced the completion of $75.32 million in financing. It is the second tranche of funding announced following $358.8 million on Jan. 18. With a strong focus on Web3, the company aims to address existing interoperability issues in the metaverse industry to realize its vision of an open metaverse.

Footprint Analytics – Gaming Financing Ranking

A total of 22 projects received financing in July, generally following market fluctuations. Investment rounds are still active at the seed stage for many months, supplemented by other rounds. This is highly related to the active time of users after the project is launched. Judging from the number of active users of the project, the active time of multiple projects such as StarSharks and Cryptomines does not exceed 3 months. Therefore, according to the current project development trend, VC’s investment funds still remain in new projects.

Footprint Analytics – Number of GameFi Projects Funded in July
Footprint Analytics – StarSharks: Monthly New Users & Active Users

Splinterlands gamers make up the majority of Hive users

Footprint Analytics shows that the total number of monthly users is 1.19 million, of which 483,000 are new users and 710,000 are old users. At the beginning of the year, developers engaged millions of users through a variety of game genres and styles. And they keep trying them out in a wide range of games. Users profit if they can catch a bull market, but if they encounter a bear market, they are in trouble.

Footprint Analytics – Monthly GameFi Users

The overall subscriber base has decreased from 3.59 million players in January to 1.19 million in July (-69%). Here are the pain points of GameFi:

  • Lack of originality, with an economic model mainly based on mining, output and reproduction.
  • Some games require players to invest in game tokens before they can play, and users have a strong demand for capital recovery.
  • Infinite inflation model, affected by the bear market, governance token and in-game token prices bring down; their games cannot get rid of the death spiral.

As a result, most P2E games currently require new players to enter to maintain economic stability.

Take Axie Infinity and Splinterlands are two examples.

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Splinterlands has been a relatively hot game since its launch. In terms of the percentage of new users in July, Splinterlands is the project with the highest percentage among all the projects.

Footprint Analytics – New Users by Protocol %
Footprint Analytics – Top10 Gamers by Chain

In contrast to Axie infinity before March, to participate in the game to truly gain revenue, real money was required to purchase the pet P2E (expected to be about $110 at the then-currency price). But the cost is high for the average player, and the payback period will lengthen as market trends change. However, Splinterlands requires only $10 to participate in the game, which is a low barrier to entry.

In general, the development team of Axie infinity ignored interesting designs when designing the game and launched the Origin version at the end of March, adding cards and free attributes. And the virtual Land pledge function was launched in early July. I hope users can experience the fun of the game, not just make money.

Axie infinity’s fortunes are turning

From GameFi’s monthly trading volume change, only the period of October-November last year was a period of incremental trading, and after December, the overall trading volume gradually declined until the lowest value in July. This process of change is very similar to the meaning of new projects that appear to attract a large number of players to trade, and then leave after they get tired of playing.

Footprint Analytics –  GameFi Monthly Volume

Despite the decline in the GameFi trading market, Ronin was able to buck the trend of declining trading volume on mainstream blockchains and overtake BSC to regain the number one spot. This is mainly due to the launch of the virtual land pledge feature on its on-chain Axie infinity game, which has contributed to the growth of AXS prices and the gradual improvement of the trading volume.

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Footprint Analytics – Gaming Volume by Chain

Summary

In the past bull market, many new play-to-earn games were launched, but only a few were able to maintain a steady user base. Splinterlands is one of those projects, retaining users through its low barrier, simple gameplay and fast battle speed. Also, Axie Infinity never stopped innovating, adding new features to regain its status.

At the same time, more funds flowed to Web3 projects in July, aiming to solve more problems for P2E games.

July Events Review

NFT & GameFi

  • NFT authentication company optic closes $11M seed round led by Pantera Capital and Kleiner Perkins
  • Yuga Labs’ NFT series has generated over $5 billion in total sales and nearly $150 million in royalty revenue
  • Video game giant Square Enix plans to drop a final fantasy VII NFT collection in 2023
  • STEPN announces Q2 profits & initiates quarterly GMT buyback & burn
  • Solana-based MonkeyLeague game developer raises $24 million

Metaverse & Web3

  • BAI Capital completed the first fundraising of US$700 million and will focus on Web3, Metaverse and other fields
  • Web3 music platform Audius community vault attacked with loss of 18.5M $AUDIO
  • Web3 Foundation announced the 14th batch of the funding program; 36 projects were shortlisted
  • Magic Eden launches venture unit to invest in web3 gaming startups
  • Disney launches startup accelerator program focused on NFTs and the Metaverse

DeFi & Tokens

  • Curve to launch an over-collateralized stablecoin
  • Decentralized crypto exchange Hashflow raises $25M at $400M valuation
  • BTC manages to float above $20K despite recent liquidations and heavy outflows
  • Polygon (MATIC) flips this token to become the most traded crypto among ETH whale
  • Stablecoin market cap slides, BUSD and DAI valuations jump, Fiat tokens represent 70% of all crypto trades

Network & Infrastructure

  • Polygon Launches zkEVM scaling solution for Web3 adoption
  • Vitalik Buterin discusses Ethereum’s upcoming “Merge” and “Surge” at EthCC in paris
  • Matter labs schedules zkSync 2.0 mainnet launch for October
  • Terra-based projects begin exodus to Polygon following Terra collapse
  • Solana and Avalanche poised for gains as crypto market enjoys new tailwinds

Institutions

  • Three Arrows Liquidators seize $40 Million as asset probe widens
  • SEC lists nine crypto tokens as securities following Coinbase insider trading charges
  • Tesla dumped 75% of its BTC holdings
  • Blockchain.com cuts 25% of its workforce amid a crypto bear market
  • Crypto.com integrates Google Pay for users to buy cryptocurrencies

Worldwide

  • Reserve Bank of India is working on “Phased Implementation” of Central Bank Digital Currency
  • After Terra LUNA Crash S. Korea delays crypto tax
  • Ghana ranked as the country with the second-highest debt default risk globally
  • Australian regulator trials auto take-down of crypto scam sites
  • Bank of Russia says stablecoins are not suitable for settlements

This piece is contributed by the Footprint Analytics community

Aug. 2022, Vincy Data Source: Footprint Analytics – July 2022 GameFi Report

The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.

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Analysis

Biggest Movers: DOGE, XRP Hit Highest Point Since Late September

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Biggest Movers: DOGE, XRP Hit Highest Point Since Late September

Dogecoin was trading near its highest point since late September on Wednesday, as prices rose for a second straight day. The rally comes as the meme coin continues to trade above a key resistance level, following a breakout on Tuesday. Xrp was also in the green today, trading close to a one-week high.

Dogecoin (DOGE)

Dogecoin (DOGE) was one of today’s notable movers, as the meme coin hit its highest level in over a week.

Following a low of $0.0606 on Tuesday, DOGE/USD rallied to an intraday high of $0.06646 earlier today.

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The move saw the token continue to trade above a resistance level of $0.0640, hitting its strongest point since September 24.

DOGE/USD – Daily Chart

Looking at the chart, it can be seen that prices have declined, which came as the 14-day relative strength index (RSI) hit a resistance point of 60.00.

This collision has since prompted traders to exit previous positions, securing earlier profits in the process.

The memecoin continues to trade above its $0.0640 level, with the 10-day (red) moving average also trending upwards, which could be a sign of further gains to come.

XRP

Another relatively big mover on hump day was XRP, which also rose close to a one-week high in today’s session.

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XRP/USD hit a high of $0.4938 earlier, which came as prices of the token rose for a third consecutive day.

This rise in price saw XRP hit its highest point since September 30, and it moved closer to a key resistance level in the process.

XRP/USD – Daily Chart

Looking at the chart, the token edged closer to this $0.510 mark, which hasn’t been hit since September 25.

As of writing, earlier gains have somewhat faded, which comes as the RSI looks set to hit a ceiling of 62.00.

Should the index move past this point, then there is a strong possibility that XRP will continue to climb higher.

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How high do you believe XRP can climb this month? Let us know your thoughts in the comments.

Eliman Dambell

Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Analysis

Bitcoin, Ethereum Technical Analysis: BTC Climbs To 2-Week High

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Bitcoin, Ethereum Technical Analysis: BTC Climbs To 2-Week High

Bitcoin continued to trade above $20,000 on Wednesday, as the token remained near a two-week high. Bullish momentum in cryptocurrency markets has been higher this week, with prices surging after a recent downward spell. Ethereum, on the other hand, was largely unchanged in today’s session.

Bitcoin

Bitcoin (BTC) was once again trading above $20,000, as the token continued to trade near a two-week high.

BTC/USD surged to a peak of $20,479 late in Tuesday’s session, which was its highest point since September 13.

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On Wednesday, prices remained near this level, however slipped marginally after failing to extend a breakout of a key resistance point.

BTC/USD – Daily Chart

The token slipped below this ceiling of $20,350 earlier today, and as of writing, is trading at $20,024.63, which remains higher than yesterday’s low of $19,917.91.

As can be seen from the chart, the 14-day relative strength index (RSI) has also declined today, with the indicator now tracking at 52.45.

This mark is marginally under a support level of 53.00, and should the reading continue to depreciate, we will likely see BTC back below $20,000.

Ethereum

Ethereum (ETH) was mostly consolidating on Wednesday, as the token fell back towards a support point of its own.

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Following a high of $1,364.97 during yesterday’s session, ETH/USD dropped to an intraday low of $1,335.89 earlier in the day.

As a result of this slippage, the world’s second largest cryptocurrency moved back towards its floor of $1,330, a level which it broke out of less than 24 hours ago.

ETH/USD – Daily Chart

Looking at the chart, the decline appears to have come once the RSI failed to move beyond yesterday’s resistance of 44.90.

Currently price strength is tracking at 43.67, and seems to be heading for a floor close to the 42.00 level.

Should it arrive at its destination, then there is a strong likelihood that ethereum will be under $1,300.

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Do you anticipate ethereum falling below $1,300 this week? Leave your thoughts in the comments below.

Eliman Dambell

Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Altcoins

MATIC – The how and why of this buying opportunity

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MATIC – The how and why of this buying opportunity

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

  • MATIC sees a surge past a key resistance following an announcement
  • Price action needs to develop further but a buying opportunity could arise 

The native token of Polygon has posted rapid advances on the price charts over the past couple of days. This bullish move came at a time when Robinhood announced a partnership with Polygon as the trading app looked to move into the Web3 space. MATIC was able to zoom past the resistance at $0.78, but will a retest of the same offer another buying opportunity?


Here’s AMBCrypto’s Price Prediction for MATIC for 2023-24


MATIC clears liquidity pocket, further gains in sight

Source: MATIC/USDT on TradingView

In yellow, a range was highlighted for MATIC. It extended from $0.72 to $1.03, with the mid-point at $0.877. The price has traded within this region since mid-July, which added to the significance of the range.

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The RSI climbed back above neutral 50 after spending a good portion of September under the line. This suggested that the bearish momentum had flipped bullish. However, this might not signal that a move to or past $35 was on the cards.

At press time, the $0.788-zone was a liquidity pocket, one where a bullish order block could form over the next few days. Thereafter, a revisit to this zone could offer a buying opportunity.

MATIC could rise to $0.88 and $0.95 after such a retest, which can be used as take-profit levels.

Lack of inflows spotted this past week

The inflows chart revealed that inflows have fallen over the month of September, compared to August. In July, the amount of MATIC moving onto exchanges was much greater, yet the price did rally from $0.5 to $1 throughout that month.

Overall, the fact that inflows were somewhat subdued in September raised a bullish question. Could whales be accumulating MATIC? Even if the answer is yes, that might not stop the asset from sliding beneath the range lows in the event that Bitcoin plunges past $18.5k.

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Patience would be the key for longer-term traders and investors in MATIC. $0.788 is a key level and it could present a buying opportunity over the next week or two. This would require Bitcoin to remain near the $20k-mark or even rally past the $20.8k-resistance.

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