On-chain data reveals that around 4,000 wallets have significantly boosted web3 casinos and gambling websites, depositing $5 billion worth of cryptocurrency in 2023 alone.
Enormous Wealth Accumulation by Web3 Casinos
Web3 casinos and gambling platforms are experiencing substantial wealth accumulation, with only 4,000 Ethereum (ETH) wallets contributing $5 billion worth of crypto in 2023, according to data from Chainalysis. The New York-based blockchain forensic company disclosed in an August 5 blog post that high-frequency players have a significant impact on web3 gaming businesses, transacting an average of $7,000 worth of crypto each.
The Impact of Crypto Whales
While the number of crypto whales engaging with web3 casinos is relatively small, their financial contributions are immense. Approximately 500 such whales, each sending around $25,000 in crypto on average, collectively transferred $320 million in 2023. This highlights the stark disparity between the contributions of casual players and VIP clients.
Transaction Patterns
Chainalysis reports that most transactions on web3 casinos involve personal wallets, with the majority of players using these wallets for deposits and withdrawals. Specifically, deposits and withdrawals related to web3 casinos from personal wallets account for 61% and 70%, respectively, while crypto exchanges make up 38% and 29%. Many players do not obscure their on-chain activities, allowing businesses to analyze player behavior.
Business Insights
By analyzing on-chain behavior, companies can gain insights into "player holdings, spending habits, and engagement across blockchain platforms." This information enables businesses to benefit from more accurate segmentation, tailored strategies, and a comprehensive view of off-platform activities crucial for engaging users.
Steady Growth and Potential Risks
Over the past four years, web3 casinos have seen steady growth in inflows, accumulating $78.7 billion in crypto. Despite this rapid expansion, Chainalysis has raised concerns about potential risks, indicating that some platforms could be used for money laundering.
Web3 casinos continue to thrive, driven by significant contributions from a relatively small number of high-frequency players and crypto whales. However, the industry must address potential risks to ensure sustainable growth and maintain trust among users.
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