The blockchain gaming market is experiencing rapid growth, with the market size potentially reaching $301.5 billion by 2030.

Author: Slice Analytics

Compiled by: Deep Tide TechFlow

"Games are a form of communication and a bridge connecting people. They are like a thread that ties people closely together." — Hideo Kojima - Creator of Metal Gear.

Introduction

The blockchain gaming market is experiencing rapid growth, with an expected compound annual growth rate of about 68% from 2024 to 2030, potentially reaching a market size of $301.5 billion by 2030. This growth is driven by the decentralized nature of blockchain, where players can truly own in-game assets, such as NFTs and tokens. This ownership distinguishes GameFi from traditional gaming ecosystems, providing players with a unique combination of entertainment and financial incentives that traditional platforms cannot match.

While all GameFi types are expected to thrive over the next decade, role-playing games (RPGs) are particularly well-positioned to benefit from GameFi's decentralized model as they emphasize character growth, immersive worlds, and in-game economies. In traditional RPGs, players spend considerable time cultivating characters, acquiring rare items, and exploring complex storylines; however, the value of these achievements is often locked within the game's ecosystem. In GameFi, players can truly own and trade assets, such as rare items and characters, converting in-game accomplishments into tangible value in the real world and enhancing player engagement through additional progress incentives. According to a 2023 report by Game7, RPGs are considered the most popular Web3 game type, accounting for 22% of all Web3 games, followed closely by action games at 17%. This further underscores the synergy between RPGs and GameFi.

Source: Web3 Games by Type

Another growth indicator in the Web3 GameFi space is the rise of AAA and AA games. AAA games typically receive at least $25 million in funding, are endorsed by publishers, and developed by experienced large teams. These games bring unprecedented quality and immersive experiences to blockchain gaming. Although AAA games currently account for only 1% of GameFi, the combined total of AAA and AA games accounts for 6%, surpassing the 4% share of AAA and AA games on traditional Web2 platforms like Steam. The reasons for GameFi attracting more investment than traditional markets may include the complexity required to build in Web3 (with a need for blockchain technology and smart contracts) or the fact that, according to Steam data, 71% of daily users interact with AA or AAA games. This indicates that users prefer high production value games, suggesting that AAA games in GameFi are meeting market demand.

In addition to analyzing RPG and action-type GameFi and the economic and social growth of GameFi, this report also compares metrics between top games and blockchains.

Differentiating Factors in Web3 Games

Games like Illuvium, Axie Infinity, and Seraph demonstrate how to combine a high-quality gaming experience with a decentralized economic system in Web3 games. Illuvium is dedicated to creating a visually stunning 3D world that incorporates both PvE (Player vs Environment) and PvP (Player vs Player) gameplay. Axie Infinity is famous for its 'play-to-earn' model, allowing players to earn real income through gaming, but it also faces challenges in user retention. Seraph stands out with its variable rarity items and loot box system, where randomness allows players to receive high-value rewards regardless of their investment. This common 'degen' reward structure in the crypto space stimulates player interest and encourages ongoing participation. As a loot game available on PC and mobile, Seraph verifies the rare virtual assets players earn or purchase through NFTs. This integration of NFTs allows assets to be freely traded and monetized, creating a robust player engagement loop that maintains player interest. Below is an example of Seraph's dynamic reward system, where luck represents the significant variability in reward rarity.

Source: Seraph, Mystery of Chaos

In-Game Economic Comparison

In successful Web3 games, the design and mechanisms of the in-game economy are key to attracting player interaction and participation. Axie Infinity has one of the most well-known dual-token economic systems, consisting of Smooth Love Potion (SLP) and Axie Infinity Shards (AXS). SLP is a utility token earned by players through gameplay, used for breeding new Axies, forming a circular economy where players are rewarded for participation. SLP can also be traded on secondary markets, converting in-game efforts into real-world value, allowing players to monetize their endeavors. AXS serves as a governance token, allowing holders to vote on important decisions for the future of the game and earn additional rewards through staking.

Illuvium relies on a robust NFT marketplace where players can trade rare assets like Illuvials. By incorporating collectible elements into its 'play-to-earn' model, Illuvium adds value and depth to its economic system.

Seraph adopts a single token model, keeping utility tokens off-chain. This strategy promotes a stable economic cycle, allowing players to easily transfer funds in and out of the game, concentrating users' capital and participation in one form of currency.

The following is a comparison table of in-game economies for Seraph, Axie Infinity, and Illuvium (2024):

Source: Comparison of In-Game Economies for Seraph, Illuvium, and Axie Infinity (2024)

Social Aspects

In Web3 games, community engagement on social platforms is key to building a strong player base and maintaining user interest. X, Discord, and Telegram are essential tools for developers to release updates, interact with players, and foster a sense of belonging within the gaming ecosystem. A high number of followers on these platforms often reflects a game's ability to create a focused and active community, which is crucial for long-term success in a decentralized environment.

Axie Infinity has 869,000 Twitter followers and 591,000 Discord members, making it one of the most active communities in the field, laying the foundation for its early user growth and influence. Seraph also boasts a strong community base, with 374K followers on Twitter, 321K members on Discord, and 92K members on Telegram, driving its rapid growth. Illuvium, while smaller in scale, still has a substantial audience, with 399.5K followers on Twitter, 116K members on Discord, and 17K members on Telegram, demonstrating the importance of maintaining active communication channels. Despite the considerable total follower numbers of all major competitors, Seraph has performed notably in recent growth, adding 52K followers on Twitter in the past month, while Axie and Illuvium added only 1,900 and 2,100, respectively.

The following is a comparison table of social influence for Seraph, Illuvium, and Axie Infinity (2024):

Social Influence Performance in Seraph, Illuvium, and Axie Infinity (2024)

Having a large active user base across multiple social platforms allows games to keep players informed, engaged, and excited about upcoming features and developments. Additionally, the recent growth in fan numbers demonstrates these games' good grasp of user attention in the short term.

Quantitative Metric Comparison

Despite challenges in the overall crypto market, the daily transaction volume of blockchain games grew by 8.94% in August 2024. Looking at the performance of various games this year, Seraph leads with 537K in Daily Active Wallets (DAW), significantly surpassing Illuvium's over 200K and Axie Infinity's 154K. However, Axie Infinity dominates the current NFT market cap at $34 million, followed by Seraph at $15 million and Illuvium at $2.8 million. In terms of NFT transaction volume, Seraph significantly leads with $65.5 million, far exceeding Axie Infinity's $22 million and Illuvium's $3.1 million. A key driver of Seraph's high DAW might be its impressive 7-day retention rate of 66% during the preseason, indicating that many new users have maintained ongoing engagement.

Source: Comparison of Metrics for Seraph, Illuvium, and Axie Infinity (2024)

Source: DappRadar, Footprint, CryptoSlam, Immutable.com, ActPass

Comparison of Top GameFi Chains

When evaluating the performance of leading GameFi chains such as opBNB, Ronin, Polygon, and Immutable X, several key factors need to be considered, such as gas fees, transactions per second (TPS), and scalability. These metrics are particularly important for NFT gaming ecosystems, as supporting high transaction volumes requires fast and cost-effective transactions.

Source: Key Metrics of Top Gaming Chains opBNB, Ronin, Polygon PoS, and Immutable X

The following is a detailed analysis of key metrics:

• Gas Fees: In the GameFi ecosystem, gas fees are crucial as frequent small transactions and NFT transactions are at its core. opBNB offers the lowest median gas fees among major chains, at just $0.0001, making it highly cost-effective for gaming applications. Ronin follows closely with a median fee of $0.00179, Polygon PoS at $0.00293, while Immutable X excels in NFT minting and transfers, charging no gas fees.

• Theoretical Transactions Per Second (TPS): High TPS is critical for handling the substantial transaction volume required for real-time multiplayer games and frequent asset trading. As of October 2024, Ronin leads with 100,000 TPS, surpassing Immutable X's 9,000 TPS and Polygon PoS's 7,200 TPS. opBNB also ranks among the top chains with 10,000 TPS, ensuring scalability for large-scale NFT trading.

• Average TPS: While theoretical maximum TPS can reflect a network's potential capacity, actual usage often varies. Currently, opBNB averages 97 TPS, far below its theoretical limit of 10,000. Ronin averages 20 TPS, Polygon PoS processes 33 TPS, while Immutable X is the lowest at only 0.02 TPS. As the average TPS figures are significantly below the theoretical maximum, scalability is not an urgent issue at present. With the expansion of the gaming industry and increased adoption of account abstraction (AA), particularly in complex gaming ecosystems, having high TPS will be crucial for managing the increased load and ensuring a seamless user experience.

Fast transaction speeds, low gas fees, and good scalability remain key to supporting the growing economic demands of NFT games in GameFi. opBNB proves its ability to handle large volumes of transactions with an average TPS of 97 (2024). As GameFi continues to expand, these chains will play a crucial role in shaping the future of blockchain gaming.

Key Factors in GameFi Blockchains

To assess the success of blockchain networks in the gaming industry, several key performance metrics need to be considered, such as Daily Active Wallets (DAW), Total Locked Value (TVL), and the number of games hosted on each chain. By comparing opBNB, Ronin, Polygon, and Immutable X, we can see how these metrics reflect the ecosystem's vitality, user engagement, and platform liquidity. Furthermore, security remains a critical factor, as security vulnerabilities in major chains could undermine user trust in GameFi.

The following is a comparison of key gaming metrics for opBNB, Ronin, Polygon PoS, and Immutable X:

Source: Game-Specific Metrics opBNB, Ronin, Polygon PoS, and Immutable X

Source: DappRadar, Footprint, Defillama, Crypto Briefing, CNN

The following are our findings:

• Daily Active Game Wallets: As of October 2024, opBNB's DAW achieved a 72% month-on-month growth, reaching 1.36 million daily active players, highlighting its scalability and excellent performance in the gaming sector. In contrast, while Polygon is a widely used platform, its DAW is only 68,000, indicating a decline in its gaming user base. Ronin and Immutable X's DAW stand at 923K and 173K, respectively, demonstrating stable user engagement within their ecosystems.

• Total Locked Value (TVL): Polygon leads with a TVL of $972 million, solidifying its important position in the gaming industry. Ronin and Immutable X follow closely with $135 million and $132 million, respectively. Meanwhile, as a newer Layer 2 solution, opBNB is rapidly rising, with a TVL of $25 million.

• Number of Games: Polygon boasts over 480 games, establishing its position as a developer hub. opBNB follows closely with over 20 games, showcasing its rapid expansion in the GameFi sector. Ronin and Immutable X have over 20 and over 30 games, respectively, focusing on specific gaming areas, such as Axie Infinity on Ronin and NFT-driven games on Immutable X.

• Major Recorded Hacking Incidents (Loss Amount): opBNB and Immutable X have not experienced any recorded hacking incidents to date, maintaining a good security record. Polygon once faced potential vulnerabilities, but a white hat hacker discovered them in time and alerted the team about the technical issue. In contrast, Ronin faced the most severe security challenge, with a hacking incident worth $600 million allowing the attacker to exploit private keys to validate network transactions. Following this incident, Ronin underwent security upgrades, including increasing the number of validators and introducing hardware security modules (HSM) to prevent future security breaches.

Conclusion

In summary, the GameFi ecosystem is in a crucial expansion phase, with an expected market value of $301.5 billion by the end of 2030. This rapid growth is driven by the decentralized ownership of in-game assets (such as NFTs and tokens), which provide real-world value and unique financial incentives not achievable in traditional gaming ecosystems. Despite facing broader market challenges, the number of daily active wallets in August 2024 still grew by 8.94%, further highlighting the resilience of the current GameFi space.

With continuous improvements in blockchain infrastructure—providing higher transaction capacity, lower gas fees, and better scalability—GameFi projects, especially those driven by NFT economies and with significant social impact, will be in a favorable growth position. Leading chains like opBNB, Ronin, and Immutable X are gaining attention for their advantages in speed, low costs, and scalability, attracting numerous developers and players.

Color Coding: Green indicates good, yellow indicates average, and red indicates below average.

Source: Key Features of Comparison Matrix: Seraph, Axie Infinity, and Illuvium

Disclaimer: Nansen and Slice Analytics wrote the following report based on an existing service contract with Seraph ('Client'). While Seraph has the right to review and provide feedback on the report, Nansen retains complete editorial control over its release. The opinions expressed in this report are solely those of Nansen's research analysts (i.e., the authors mentioned in this report). This report is for informational purposes only and does not constitute investment, financial, professional, or other advice. For more information, please refer to the disclaimer at the end of this report and our terms of service.