Gaming is one of the fastest-growing sectors within the blockchain space, boasting around 4.7M daily active users and a market cap of Web3 game tokens of $22.06BN since 2020. Though comparatively small to the traditional gaming sector, currently with around 3,400 active Web3 games, – mainstream game developers are showing interest in the benefits of blockchain technology and how it can create a better experience for gamers. Early Web3 games have faced challenges due to overemphasizing earning mechanics, overshadowing gameplay enjoyment. Developers are now shifting their focus, recognizing that blockchain offers secure in-game economies and true ownership of digital assets, paving the way for more immersive and player-driven experiences.
This report will explore how blockchain is reshaping the Web3 gaming landscape, diving into key market trends, the blockchains enabling these innovations, and the unique features that make them attractive to developers. The report will also take a closer look at Avalanche and other top-performing blockchains driving growth in the gaming space.
Market Overview: Why Does Gaming Need Blockchain Technology?
Blockchain games thrive on several crucial factors—speed, low transaction costs, and user scalability. All of these factors combined lead to the benefits of:
- Giving players more control
- Creating a decentralized system
- Creating new opportunities for players
Therefore, when game developers choose a specific blockchain technology to build their game, they look at the abovementioned features to ensure the game can work seamlessly and give its players the most enjoyable experience possible.
Currently, the blockchains with the most Web3 games are BNB Chain (341 active games), Polygon (267 active games), and Ethereum (195 active games). As seen in the graph below, there has been staggering growth over the past 6 years, with blockchain gaming growing relatively stable since early 2023.
Similarly, the growing role of blockchains in the gaming sector can be seen in the market cap of gaming blockchain coins – again showing the strong interest and sentiment in games supported by blockchain technology.
Blockchains Supporting the Development of Web3 Games
Several blockchains are pioneering the advancement of Web3 gaming; below are examples of the top blockchains:
- The BNB Chain is one of the frontrunners for blockchain gaming, particularly through the BNB Smart Chain (BSC) and opBNB – all tailored to meet the intricate demands of game developers. As of 2023, the BSC and opBNB were the biggest Layer 1 and Layer 2 platforms, with approximately 1.4M daily active users. A game launched on opBNB mainnet is Fusionist – a sci-fi AAA game that built a proprietary sidechain called Endurance on top of the opBNB stack. Endurance can accommodate a large number of transactions both in terms of processing capacity and costs.
- Ronin provides an efficient blockchain network that supports popular games like Axie Infinity and Apeiron. Launched initially to enhance the transaction speed and reduce fees for Axie Infinity players, Ronin has evolved into a comprehensive ecosystem for play-to-earn games. The network facilitates smooth user interactions while providing developers with a scalable platform for engaging gameplay experiences.
- Immutable X is a layer-2 scaling solution for Ethereum, allowing instant trading and zero gas fees. It has gained recognition in gaming with titles like Cross the Ages, which utilizes its technology to enhance the user experience. By enabling developers to create scalable NFT-based games without compromising security, Immutable X provides a robust environment for game creators to build vibrant, engaging, and player-centered gaming experiences.
- NEAR emphasizes simplicity, encouraging game developers to create engaging user experiences. Games like Play Ember have chosen NEAR for its innovative features, such as human-readable account names and budget-friendly transaction fees. NEAR also recently partnered with Sweatcoin, a move-to-earn platform boasting over 170 million users and partnering with over 600 brands to fuel the next movement economy.
Another blockchain gaining popularity is Avalanche, which recently launched the Avalanche 9000 network. This new update focuses explicitly on the gaming industry, promising significant improvements and opportunities for developers. For this, the article will deep dive into the Avalanche chain and how it has supported the growth of Web3 gaming.
Deep Dive: Spotlight on Avalanche
Avalanche’s core appeal is its cutting-edge architecture, which includes three interoperable blockchains: the X-Chain, C-Chain, and P-Chain. Each chain serves a distinct purpose, making the platform versatile and highly efficient. The X-Chain is optimized for creating and trading in-game assets quickly and at low cost. Meanwhile, the C-Chain ensures compatibility with Ethereum, allowing developers to effortlessly port their games between platforms and tap into the extensive Ethereum ecosystem. On the other hand, the P-Chain empowers developers to create custom subnets tailored to specific gaming requirements, such as reduced latency or increased throughput—key elements for an enhanced gaming experience.
The introduction of the Avalanche 9000 network specifically heightens Avalanche's appeal to game developers. This initiative focuses on optimizing the blockchain’s capabilities for gaming, addressing industry-specific needs such as transaction speed, network scalability, and cost efficiency. By tackling these areas, Avalanche 9000 offers game developers a robust and flexible environment to build innovative and seamless gaming experiences.
Use Cases: Games on Avalanche
Avalanche's capabilities have attracted several pioneering projects in the blockchain gaming space, showcasing its potential for enhancing decentralized gaming experiences:
- Gunzilla Games: This independent AAA game studio has made a significant impact with the launch of its proprietary GUNZ platform built on the Avalanche subnet. GUNZ is designed to facilitate seamless gameplay with in-game tokens, creating an intuitive experience for both Web3 and traditional gamers. GUNZ supports the Gunzilla Games’ flagship battle royale Off The Grid. It recently launched its Early Access version and is now available on PlayStation, Xbox, and PC—making it the first blockchain-powered game to ever launch on console. Since launching, the game has received rave reviews from top publications and is one of Twitch's top three most streamed games.Furthermore, the collaboration with OpenSea, which powers the project's marketplace, enables players to trade in-game items, supporting the trading of NFTs and expanding the gaming economy on Avalanche.
- DeFi Kingdoms: Originally built on Harmony, DeFi Kingdoms expanded to Avalanche to maximize the platform’s speed and scalability. This game merges decentralized finance (DeFi) with gaming, allowing players to trade, invest, and explore virtual worlds. Avalanche’s architecture makes this possible with minimal delays and low transaction costs, allowing real-time interactions in the game’s marketplace.
- Rune Seeker: The game is building a next-generation strategy card game on the Avalanche network. It is designed to combine traditional card games' tactical depth with blockchain technology's unique features. Rune Seeker aims to balance clear tokenomics and in-game assets and seamless onboarding for Web2 games that aren’t apt in the blockchain gaming world.
Final Remarks
Blockchain technology fundamentally transforms Web3 gaming by enhancing player control, ownership, and gaming experiences. As demonstrated by various blockchains and successful gaming projects, blockchain’s ability to support seamless, scalable, and secure gaming environments underpinned the industry's growth. Going forward, continued development in blockchain technology will be crucial in shaping the future of interactive gaming, making it more inclusive and engaging for a broad audience.