After a late summer rally, crypto markets pulled back in September, bringing with it many metrics related to the health of the GameFi industry.

The amount of volume passing through GameFi protocols hit all-time lowsInvestment was still sidelinedVery few new GameFi projects were released

On the other hand, the number of active GameFi users increased, largely due to the Arc8 arcade app at Polygon and, to a lesser extent, various smaller projects at BNB.

However, even well-performing projects in September did not see huge price increases for their tokens. The market capitalization of GameFi tokens continues to decline.

Key results

general market

The fear and greed index fell again to extreme fearEthereum was just 20% off the yearly lows on Sept. 22 when it hit $1,245.In the GameFi space, this pushback manifested itself as less investment in the space and a dearth of new projects being released.The number of GameFi projects grew by 1.3%, an all-time low for the industryOf the 4 largest blockchain gaming chains (BNB, ETH, Polygon, Wax), BNB had the most new projects, 12 in totalEthereum, WAX and Polygon had 2, 3 and 4 new projects, respectively

Financing and Investment

The amount of funds raised in the GameFi space fell 20% month-on-month, from $0.448 billion to $0.133 billion.Independent game studio Theorycraft received the largest investment of the month with a $50 million B round. The founding team includes names from Blizzard, Riot Games, and Ubisoft. The foray into GameFi highlights the trend of established game companies and developers moving into Web3, even in harsh market conditions.The second funding round of the month was closed by Revolving Games, another blockchain game studio.Animoca Brands continued to pour money into the space, becoming one of the largest funders and backing funding from Revolving Games and Thirdwave in September.Immortal Game raised the second round of funding for the month with $15.5 million from TCG, along with other technology and entertainment venture capital specialists.

GameFi volume and users

Total volume on GameFi fell 40% percent MoM to hit an all-time low since the start of the bear market.Contrary to intuition, the number of players has increased considerably MoMThis indicates a decline in volume per user, which is reflected in GameFi’s volume and transaction data per user.Ronin, and by extension Axie Infinity, lost 11% market share in game volume. On the other hand, Polygon and BNB gained 5% and 7% respectively.MAU increased 27%, 43% of which were new users (614,600 total), the largest month-on-month increase since MarchThis increase was primarily driven by new players on Polygon (88% of new players in September), the vast majority of whom played Arc8, a mobile arcade game.

Project Summary

The increase in people playing Arc8 fueled significant growth for Polygon in October; Arc8 is GameFi’s first mobile arcade from blockchain studio GAMEEUnlike what would likely have happened earlier in the year, when a game’s standout performance would generate hype and lead to spikes in the token’s price, GMEE, Arc8’s native token, did not experience a significant price increase, increasing between 20 and 30% MoM. . It’s still 97% below its ATH and about 20% below its June price when it had a similar number of active users.Splinterlands and Alien Worlds continue to be the two most played games on GameFi, with the overall number remaining relatively stable

Cryptographic Macros Overview

After jumping sharply to almost reach “greed” levels in the Fear & Greed Index in August, the index fell back into a state of extreme fear in September.

Footprint Analysis: ETH VS FGI Price (September Report)

Ethereum price fell when the hype around The Merge died down, although this may be purely incidental; the S&P index also fell sharply in the second half of the month.

Investment in GameFi runs out

The most striking data for September are investment and financing. It fell from $0.448 billion in August to $0.133 billion in September.

September Monthly Report: Financing, Monthly Investment

While the end of summer is a very difficult time to get financing (and therefore close deals in September), the gap between this year and last is too big to ignore. The collapse in funding will have knock-on effects for studios, ecosystems, and developers, who are likely to be much more conservative this winter.

Polygon outperforms BNB thanks to Arc8

Polygon closed the gap with BNB, a gap that seemed to be widening at a fast pace since the beginning of the summer.

Daily number of cross-chain GameFi users

Arc8’s active users increased to the June figures, but this was not reflected in the project’s token, GMEE, which was still 20% lower than it was at the beginning of the summer.

GMEE Price

More players, less money

One of the biggest surprises of the month was the strong growth in new GameFi users.

New users per month (September report)

The logical question is, why did the volume decrease even though the number of new users increased?

The two projects that generated the most new users in September were:

However, neither saw their tokens appreciate correspondingly. The price of GameFi tokens continues to fall, which is reflected in the overall decline in the market capitalization of GameFi tokens.

GameFi Token Market Cap

Summary

As the macroeconomic environment becomes increasingly challenging, September was a difficult month for the GameFi industry.

Even a high number of users did not guarantee token price increases, and investment in the sector fell to a small fraction of what it was months ago. In other words, if trends continue, it will be difficult to find sources of income to keep projects alive. Unsurprisingly, almost no new GameFi projects were released, and none major.

This piece is contributed by footprint analysis community.

October 9, 2022, Daniel

Data source: GameFi Report September 2022 (ESP)

The Footprint Community is a place where data and crypto enthusiasts from around the world help each other understand and gain insight into Web3, the metaverse, DeFi, GameFi, or any other area of ​​the nascent world of blockchain. Here you will find diverse and active voices supporting each other and moving the community forward.

Footprint website: https://www.footprint.network

Discord: https://discord.gg/3HYaR6USM7

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Posted in: Review, GameFi

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This post GameFi Report September 2022

was published first on https://cryptoslate.com/september-2022-gamefi-report/

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