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According to a new report from the decentralized app tracking site DappRadar, crypto-based play-to-earn games and game-related non-fungible tokens (NFTs) have been the least affected sector in all of crypto during the current bear market, with venture capital investments continuing to flow into the sector.
According to the report, the crypto gaming sector peaked in June of this year, when it finally experienced a slowdown as measured by the number of unique active wallets (UAW).
In comparison, the number of daily active wallets on the Ethereum (ETH) network as a whole peaked at well over 1 million in May 2021, a figure that has yet to be surpassed.
Investors interpreted the high usage implied by the number of active wallets as "a bullish signal to continue investing in blockchain games," according to DappRadar.
It also stated that venture capital investments totaled USD 2.5 billion in the second quarter of this year, maintaining the pace set in the first quarter and "already exceeding the annual milestone of [USD] 4 billion set in 2021."
The report argued that, pointing to a new USD 4.5 billion crypto-focused fund by VC behemoth Andreesen Horowitz as a major source of future investments into the space,
“At this pace, we are projected to have a volume of 12 billion invested by the end of the year.”
Among the most notable areas in the gaming sector were virtual world-related NFTs, which saw their trading volume increase by 97 percent since the previous quarter.
According to DappRadar, the most popular game in the sector was Splinterlands, which had a daily average of 283,729 unique active wallets during the quarter.
Another bright spot mentioned in the report was Alien Worlds, which was ranked second in terms of unique active wallets. The game's player base remained "more or less stable" over the quarter, with the number of active wallets falling only 4% from the previous quarter.
The report cited the play-to-earn game Axie Infinity as an example of something that hasn't gone so well for the sector (AXS). Since the first quarter, the game has lost 40% of its players, owing largely to the major Ronin bridge hack and the depreciation of the game's SLP token.
The Ronin bridge is a cross-chain bridge that allows assets to be transferred from the Ethereum blockchain to Axie Infinity's custom-built blockchain Ronin.
However, in response to the report's findings, Pedro Herrera, Head of Research at DappRadar, stated that blockchain games have become "one of the most promising sectors of Web3."
He went on to say that the amount of capital raised, as well as a "exodus of talent shifting from the leading traditional gaming companies to web3 game startups," are other positive signs for the sector in the future.
“We are gradually seeing how Immutable-X, Gala Games, and other networks are positioning themselves to lead the rising category in years to come with impressive partnerships already in place,” Herrera said.