GameFi & Mobile games
The global gaming market size was valued at $249.55 billion in 2022 & is anticipated to grow from $281.77 billion in 2023 to $665.77 billion by 2030, exhibiting a CAGR of 13,1% during the forecast period (2023-2030)
The global GameFi market size was USD 9 billion in 2021. As per the research, the market is expected to reach USD 38 billion in 2028, exhibiting a CAGR of 27.13% during the forecast period.
Many research agencies are publishing positive trends in GameFi in 2022 and 2023.
For example, DappRadar writes that:
On-chain data for blockchain gaming shows a 1.31% increase in activity, with 858,621 unique active wallets (dUAW) created daily in January, accounting for 48% of dapp activity. - Market capitalization of leading gaming tokens increased by an average of 122%
The increase in the number of top gaming tokens in January 2023 is a very positive sign for the industry. On-chain indicators are optimistic, and the hype around these coins is only growing.
According to the data, the volume of trade and the number of sales of virtual worlds increased significantly in January 2023. Trading volume for January was $44.5 million, up a whopping 114% from December 2022 when it was $20.7 million
If you donβt look at the loud headlines in these reports, but look at the examples, you can see that the authors rely on isolated cases of success of some blockchain networks or gaming projects.
At the same time, other analysts (BitMart Research) describe the market situation as disappointing.
The GameFi market has had a turbulent year, as has the entire cryptocurrency market, with its market capitalization falling 81.5% year-to-date to $4.3 billion from $23.2 billion earlier this year.
Token prices for all major games in the Gamefi space have fallen by almost 90%
Gamefi projects have proven their market value, but still suffer from user retention and falling token prices. New narratives may have led the market trend for a while, but soon died, as they always do: from Metaverse to Move-to-Earn, X-to-Earn and AAA Games.
Gamefi projects have also made unsuccessful attempts to rebrand from "play to earn" to "play and earn", "play to own" and "free to own", which seems to be a new trend but is still uncertain.
Cryptocurrency gaming has much more potential to invigorate the GameFi market, but it is still in its early stages and is far from proving its market suitability.
Facts and trends
Whatever the sentiments of industry experts, there are facts and trends that both of them rely on, and these facts speak of the huge GameFi market. Everyone is expecting a boom in Web3 games, which will usher in the era of GameFi 2.0:
The capitalization of GameFi projects has already exceeded $26.6 billion. Prices have fallen due to the macroeconomic downturn, and as macroeconomic indicators recover, the volume of the GameFi market will grow
The number of daily active users of GameFi exceeded 1.1 million
More than 500 blockchain games were released in 2022, and many, thanks to innovative solutions, show excellent growth in 2023 despite the bear market
All the top 10 games with the most active and new users have a mobile version and the majority are well-developed Web2-based games in the Gamefi space.
Problems facing the GameFi market
The players don't play. Most Web3 players do activities in games, but it can rarely be called a game.
Abundance of bots. The active implementation of airdrops by crypto projects has led to the massive creation of multi-accounts and bot farms.
Web3 games often have a smaller development budget, so the gameplay and quality of Web3 is inferior to Web2 games.
Animoca Brands and BNB Chain see Network Effects as one of the main solutions to the problems of Web3 games
Network effects play a crucial role in Web3 games as they contribute to the growth and value of the product. In Web3 games, the more people use the game, the more valuable it becomes. As the user base expands, several benefits arise, such as reduced match times, increased communication opportunities, and the formation of a digital pseudo-society. These factors enhance the enjoyment and engagement of each user. Leveraging network effects allows Web3 games to attract more users and achieve superior scaling. It is important for product owners to design games that foster robust communities and provide appropriate incentives to maximize the potential of network effects.
In simple terms: game users should be united by something more than the game process, for example, brand loyalty, shared values and an ecosystem of diverse, complementary products.
Our vision since 2021!This professional vision of the GameFi industry development (mentioned above) is at the origin of the Salsa Valley concept and we presented it at the BNB Chain hackathon in 2021 (a 1,5 year before the release of the above-mentioned article from BNB Chain and Animoca Brands), and it is possible that this was one of the reasons that we received a high rating at this hackathon
Why do we follow BNB Chain and AnimoΡa Brands opinions?
About BNB Chain
BNB Chain has been the largest gaming network on the GameFi market for several years now and has been the leader in the creation of new GameFi projects almost every month in 2022.
BNB Chain has the most active players throughout the year
In 2022, Binance Labs has invested in nearly 20 GameFi projects, totaling over $1.91 million in projects, many of which are now big games in the GameFi market, such as Ultiverse, StepN, Alterverse, Gameta, etc.
About AnimoΡa Brands
Animoca Brands is one of the leading companies in the GameFi market, owning well-known brands, games and game studios.
According to Messari's fundraising data, there are 374 funding deals in the GameFi space in 2022, $2.37 billion in Metaverse, up 207% year-over-year; and $5.37 billion in gaming, up 40.6% year-over-year in 2021.
Animoca was the largest investor in the GameFi market, participating in 71 funding deals totaling $1.56 billion.
Target and Addressable Market Overview
Target Industries:
Our primary focus is on the Web2 and Web3 industries, encompassing traditional mobile gaming and emerging blockchain-based gaming platforms.
Target Audience:
Our target audience is a diverse mix of individuals who engage with mobile games on Web2 and Web3 platforms, as well as those who will be introduced to our ecosystem through innovative promotional tools like the Crypto Cartoon Series, Crypto Board Game, a line of real sauce, and the full-length cartoon by Salsa Valley Stories in cinemas worldwide.
1. Casual Gamers (Primarily Female Audience)
Match-Three Games: Games like Candy Crush where players match similar items.
Farm Simulation: Games like Farmville where players manage a virtual farm.
Addressable Market: With our unique blend of casual and crypto gaming, we can tap into this large user base and introduce them to the world of Web3.
2. Crypto Enthusiasts & NFT Collectors
Blockchain Games: Titles like CryptoKitties where NFT assets are fundamental.
Cryptocurrency-themed Games: Games focused on using cryptocurrencies.
Virtual Pet Games: Games for owning, trading, and collecting virtual pets.
Digital Art Puzzles: Games where solving puzzles earns you digital art.
Addressable Market: Our games offer a unique blend of traditional gaming mechanics and blockchain elements, making them appealing to both seasoned crypto enthusiasts and newcomers.
3. Financially Motivated Players
Gambling Apps: Games like slots where virtual money is at stake.
Play-to-Earn Games: Games where in-game assets can be traded for real-world value.
Addressable Market: Our skill-based earning opportunities set us apart from luck-based financial games, attracting a more genuine and engaged user base.
Geographic Focus:
Our main target markets are the USA and Latin America. Salsa sauce is known all over the world, but it is especially popular in these regions, which corresponds to the thematic focus of our brand.
Salsa Valley's Strategy for Addressable Market Reach
In a GameFi sector where there are problems like not many people playing games and robots causing trouble, Salsa Valley has become a game-changer. Our multi-faceted ecosystem products (including Cook2Earn, Shill2Earn games and the multi-chain Metaverse) aim to capture a broad audience by offering genuine gaming experiences.
True Gaming. We go beyond mere blockchain transactions to offer real gaming, blending casual and crypto elements.
Bot-Free Rewards. Our skill-based rewards deter bots, ensuring genuine players benefit.
Quality for All. Despite Web3 budget constraints, our games are high-quality and cater to both crypto and mainstream gamers.
Unified Experience. We offer a cohesive platform that turns routine brand interactions into exciting experiences.
Future-Ready. We're committed to a scalable, integrated gaming environment that meets evolving crypto industry demands.
In a nutshell, Salsa Valley's strategy is geared towards capturing a share of the addressable market by offering a comprehensive, high-quality gaming experience that solves prevalent GameFi issues and to set a new standard in Web3 gaming.
Recourses:
https://dappradar.com/blog/game-and-metaverse-tokens-rally-with-strong-on-chain-metrics https://medium.com/@BitMartResearch/gamefi-2022-review-2023-outlook-f35420c5ad91 https://www.bnbchain.org/en/blog/network-effects-in-web3-games/ https://www.fortunebusinessinsights.com/gaming-market-105730 https://www.businessresearchinsights.com/market-reports/gamefi-market-102420
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