First half. Blockchain games resilience

After a month of first half closed, the market seems a little bit more quiet, but all of us are expecting what is going to happen due to the global financial and political situation: Last Thursday the ECB raised the interest rates, inflation is skyrocketing and the energy prices keep rising. The economic outlook is not very encouraging and the uncertain situation is affecting the cryptocurrencies market as well. 

But even with this situation, the blockchain games market is resilient on its own in the first half of the year.

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Bear market

As we can see, during the first quarter of the year blockchain games and game-related NFTs have overcome the rest of the market and this is in a bear market. Only at the end of June, the sector started to slow down. 

During the second quarter, the activity of blockchain games was 52% of total blockchain activity with 1,1 million Unique Active Wallets (UAW).

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During last quarter, the total of UAW dropped by 7%, a minor number if you compare with Defi’s 17% reduction and 24% reduction in NFTs world. Blockchain games activity has grown by more than 230% on a year on year basis. 

Talking about blockchains networks, WAX is the most active with almos 400K average UAW last quarter, followed by Hive, and Solana. 

Metaverse… What’s happening? 

The Metaverse projects situation is a little different, maybe more tricky. While the tokens are going down in terms of price, their lands are sold out. 

Most of the Metaverse projects have had the same behavior that the rest of the market and they are going down at high rates, some of them have 90% – 95% reduction. 

But on the other hand even with these huge losses it’s not affecting the volume and sales of their lands, the sales volume is up by 97% during the last quarter of first half of the year. 

We can see that users start using Metaverse for fun and for building active communities instead of using it as an investment vehicle, as the native tokens are losing value.  

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What about investments 

The resistance of blockchain games for investors is a bullish sign to continue investing.

During the second quarter, 2,500 million dollars were invested, maintaining the rhythm of the first quarter. At this time, investments have already exceeded 4,000 million dollars in 2021 and the forecasts are that investments will reach 12,000 million dollars by the end of the year.

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Going forward

Although blockchain games is resilient, there are some points to be vigilant due to some weaknesses. But it is nothing strange in the bear market and can be easily explained. 

As we explained at the beginning of this article, macroeconomic data is not promising  and we know how volatile are crypto markets, and also we are in the summer holiday phase and many people are on vacation. So many are not playing games as they are in other periods of the year. 

Don’t forget that it is just starting and big companies such as Citibank are saying that the Metaverse is set to grow into a $13 trillion industry in eight years. The number of UAW is growing and blockchain games are getting players from the traditional gaming industry, which is gradually taking steps in blockchain use as well. 

 As always we keep looking for the best investment opportunities, we continue to be bullish and we believe in the sector.