GameFi continues to grow despite crypto winter: DappRadar report

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Blockchain games were the subject of the latest DappRadar x BGA Games Report #5, released on Tuesday. The report examined healthy ecosystems and investments entering the GameFi and metaverse markets.

Several projects were covered in detail in the report, which highlighted their continued success and growth. Splinterlands, Illuvium, Galaverse, and STEPN continued to attract new players to their platforms, earn financial interest, and grow their businesses.

DappRadar claimed that a common theme between many of these popular projects was the underlying utility provided by the game aspect itself. The GameFi and Metaverse projects have started using non-fungible tokens (NFTs) and crypto tokens other than out of sheer speculation – an example being the STEPN project’s move-to-earn (M2E) NFT shoes, which can be bought and sold in the STEPN metaverse, potentially offering incentives in addition to the exercise aspects of the game.

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The report states that the gameplay itself has, at least partially, demonstrated its usefulness in the context of the metaverse in the second quarter of 2022. As Bitcoin declined in early June, the blockchain game Illuvium sold 20,000 plots of land, generating 4 018 Ether (ETH) for its developers, worth $72 million at the time of the sale. The report suggests that Splinterlands has held 350,000 unique active wallets (UAWs) daily since May, showing a slight drop of 4% from April.

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Investments also continued to roll into the space. A16z and Dapper Labs have invested $1.3 billion in GameFI and Metaverse technologies, seeming to indicate continued interest and support for venture capital. Decentralized blockchain Flow also received a $725 million investment from Dapper Labs to support its metaverse-related initiatives such as NBA Top Shots.

Technologies related to the metaverse still appear to be in an incubation period and likely have a long way to go. Interoperability issues, security issues, legal clarity, uses and abuses, market instability, and poor market sentiment continue to be major hurdles for young technology.

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