2024 Blockchain Game Market Analysis: Development and Challenges in the Context of a Bull Run

In November 2024, the Web3 gaming industry experienced significant growth against the backdrop of a rising cryptocurrency market, but still faces challenges in mass adoption. As the price of Bitcoin approaches the $100,000 mark, the market capitalization of the gaming sector surged by 79.1% to $35.1 billion. Although daily active users reached a new high of 5.5 million, the industry still encounters some issues regarding the integration of Blockchain technology and widespread adoption.

Market Overview

In November, the cryptocurrency market performed strongly. The price of Bitcoin surged from $69,386 to $96,427, an increase of 39.0%. Ethereum followed closely, rising by 47.8%, from $2,511 to $3,711. Bitcoin's market capitalization surpassed silver and a certain oil company, firmly securing the seventh position among global assets.

The results of the US election have become an important factor driving the growth of the cryptocurrency market, which may affect future cryptocurrency legislation and regulatory environment. The market has reacted positively, especially reflected in the performance of popular areas such as meme coins, decentralized artificial intelligence, and decentralized science.

The broader financial markets also performed strongly. The financial sector led the stock market under expectations of tax reform and deregulation. However, international markets have experienced some volatility, with certain currencies affected by potential increases in tariffs, while gold prices fell as election-related uncertainties eased.

Blockchain Game Market Performance

In November, the market value of blockchain game tokens surged from $19.6 billion to $35.1 billion. The average daily trading volume also saw a significant increase of 79.4%, reaching $11.9 million.

Daily active users hit a new high, with an average daily DAU reaching 5.5 million, an increase of 15.7% compared to October. This is primarily attributed to the sustained user activity on certain public blockchains and the stable performance of certain ecosystems.

The trading indicators present a complex situation. Although the daily average trading volume reached 15.3 million transactions (an increase of 3.3% compared to October), the daily average number of transactions per user decreased from 3.131 to 2.810. The total monthly trading volume remains stable at 460.4 million transactions, with data showing a decline in the intensity of new users' use of Blockchain features.

The blockchain technology application strategies adopted by certain games may represent a key turning point for the industry. By positioning themselves as traditional games with optional blockchain elements rather than "NFT games," it reflects that widespread adoption may require more nuanced integration of blockchain technology. This strategy of "making blockchain functionality optional and invisible" helps to overcome many players' initial resistance to cryptocurrencies, but it also raises fundamental questions about the role of blockchain in games.

The entire blockchain gaming sector still faces significant technical challenges. Existing blockchain infrastructure struggles to meet the demands of real-time gameplay, competitive matchmaking, and the high throughput required by modern games. Although Layer 2 solutions and dedicated gaming public chains are emerging, the gap between traditional gaming performance expectations and blockchain capabilities continues to impact development strategies.

Analysis of Public Chain Ecosystem

In November, the number of active Blockchain games reached 1,696, an increase of 4.6% compared to October. In terms of game distribution, the market leaders are still certain mainstream public chains, which occupy the largest market share.

The growth momentum of certain emerging public chains continues, showing significant growth compared to the average DAU in October. This growth is mainly driven by their flagship games, and is also benefiting from projects migrating from other chains.

A well-known gaming public blockchain has shown significant recovery, with November DAU doubling from 600,000 to 1.2 million, thanks to new partnerships that introduced several game studios, the launch of new games, and a resurgence in the number of existing gamers.

However, some public chain game ecosystems are facing challenges, with a decline in DAU, highlighting the on-chain retention challenges of games based on specific platforms. Yet, there are always some exceptions in the industry, as the average DAU of certain public chains in November increased compared to the previous month, mainly due to the contributions of certain popular games.

Game Project Analysis

As of the end of November, the industry had a total of 3,602 blockchain games, of which 1,361 remained actively participating. Among these games, 298 attracted more than 1,000 monthly active users (MAU), accounting for 21.9% of active games.

Analyzing the game metrics of a certain instant messaging platform, we can see a significant gap between platform users and Blockchain participation. Even among the top 10 games that achieve the highest conversion rates, their on-chain participation rates are relatively low.

Despite facing these transformation challenges, the success of a certain instant messaging platform's gaming ecosystem is inspiring a broader imitation among social media platforms. A well-known messaging platform has announced plans to launch several mini dApps in the near future, primarily focused on gaming applications.

At the same time, projects based on a certain public Blockchain have integrated to surpass 1 million KYC-verified users through social media. The success of this platform stems from its seamless onboarding process, demonstrating the potential of social media as an entry point for Web3 gaming.

Investment and Financing Situation

In November, Web3 games secured 18 funding rounds, totaling $73.6 million. Although the number of events increased by five compared to October, the total amount decreased by 22.3%. Additionally, eight events did not disclose specific funding amounts.

A certain gaming platform leads this month with a Series A funding of $30 million. The platform combines gaming, entertainment, and gambling features, achieving considerable monthly betting volume since its launch. Despite facing regulatory challenges, the gambling segment continues to attract investor interest.

Other notable financing news includes a well-known investment institution's additional investment in a project to support further development of interoperable infrastructure to promote mainstream cryptocurrency adoption.

Overall, the blockchain gaming market in November showed strong growth against the backdrop of a bull run, but still faces challenges in technical integration and mass adoption. The industry is at a critical stage of balancing the native appeal of crypto with achieving widespread application, and future development will depend on how to overcome these challenges and drive technological innovation.