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Unlocking Exciting Developments: Why a Down Month for Blockchain Gaming is Misleading

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Despite the challenges that the blockchain industry faced in the previous year, 2023 has started off on a promising note, particularly in the realm of gaming. DappRadar’s latest on-chain data analysis for the month of February offers an encouraging glimpse into the industry’s potential for growth and development, highlighting the pivotal role of gaming in driving innovation and progress.

Key Takeaways

  • On-chain gaming activity decreased 12.33%  in February to 752,735 daily Unique Active Wallets; still, games make up 45% of the dapp industry activity.
  • Oath of Peak and Trickshot Blitz showed on-chain usage growth of 136% and 49%, respectively.
  • Unity is entering the world of Web3 gaming by offering 13 blockchain-based SDKs, providing game developers with the tools to connect with Web3 gaming.
  • The trade count for virtual worlds doubled to 51,000, resulting in 226% more trading volume ($145M).
  • Investments in blockchain games and metaverse projects totaled $148M in February.

1. Blockchain Gaming Overview

The blockchain gaming industry is a rapidly evolving sector that has been experiencing some fluctuations in its daily unique active wallets (dUAW) in February 2023. According to our data, the average daily unique active wallets connecting to blockchain gaming dapps in February were 752,735, representing a 12.33% decrease from the previous month. This decline is consistent with previous years, as February tends to be a slow month for the industry.

Despite the decrease, blockchain gaming remains the most dominant sector, with a 45.43% dominance in the industry’s unique active wallets. However, this dominance has decreased from last month, when it was at 48.5%. Benji Bananas experienced the largest decline in UAW by 67%. However, it’s worth noting that DeFi and NFT activities showed significant growth, as highlighted in our February industry report.

Looking at the top blockchain gaming protocols, Wax is the most active, with an average of 342,764 dUAW in February, representing a 3.26% increase from last month. Wax is the only blockchain gaming protocol that saw an increase in its dUAW during the period under review. Other gaming blockchains data includes Hive with 116,930 dUAW, representing a 36.14% decrease, Polygon with 90,139 dUAW, a 35% decrease, BNB Chain with 85,363, a 12.18% decrease, and EOS with 23,891, a 3.44% decrease.

Interestingly, although they are not among the top blockchain gaming protocols, Klaytn managed to increase its dUAW by 294.29% this month, reaching 15,543 dUAW, driven by the popularity of its gaming dapp Iskra. Arbitrum also saw an increase in its dUAW related to gaming, with an 82.38% increase, reaching 3,064. This was driven by the continued success of TreasureDAO, analyzed in our previous gaming report in collaboration with the BGA.

2. Alien Worlds, Oath of Peak, Trickshot Blitz and other Blockchain Games by UAW

Blockchain gaming is a rapidly growing industry, and the top 10 blockchain games for February 2023 despite a slow month, are a testament to that. In this section, we’ll take a closer look at these games based on their monthly unique active wallets (mUAW) and provide insight into their latest updates and developments.

Topping the list is Alien Worlds, which had 538,420 mUAW in February, despite a 9.69% decrease from the previous month. However, the game suffered a major setback when bad actors embezzled over $100K by staking and voting for puppet Councilors, and passing proposals that transferred millions of TLM tokens to themselves. Splinterlands takes the second spot, with 321,880 mUAW, a 5.23% decrease from the previous month.

In third place is Planet IX, with 135,890 mUAW, a 6.65% decrease from the previous month. The game launched Cargo Drop 3, which included NFTs and packs, and added Rovers – automated vehicles that assist players in harvesting their tiles. Upland took fourth place with 119,770 mUAW in February and continues to offer ongoing events for its players, including a Big Game Challenge, a Carnaval Ornament Sale, and a fundraising project for the Susan G. Komen Foundation (breast cancer awareness).

Axie Infinity, with 102,200 mUAW, saw a 13.36% decrease from the previous month. However, the game made headlines with the launch of MetaLend, a loan system that accepts NFTs as collateral. Furthermore, on 22 February at 11:30 GMT, Axie Homeland Alpha Season 1 started, which brings the first version of AXS rewards to the game. And, since rewards are now available, everyone will see their progress reset, and they must start building up their land from scratch again.

One of the best-performing games in February, Oath of Peak, saw a 136% increase in its mUAW, reaching 88,090. This game has been gaining popularity due to its unique gameplay and NFT offerings. Another top-performing game in February was Trickshot Blitz, which saw a 49% increase in its mUAW, reaching 84,160.

In conclusion, February 2023 saw some blockchain games experience decreases in their monthly UAW, while others enjoyed significant growth. However, it is clear that blockchain gaming continues to be a growing industry that offers players unique and engaging experiences. Keep an eye out for future updates and developments from these top blockchain games.

3. Unlocking new possibilities: how SDKs are revolutionizing blockchain gaming

The world of blockchain gaming is rapidly evolving, and developers require a range of tools to build decentralized applications that can integrate different functions seamlessly. Fortunately, Software Development Kits (SDKs) have been developed to make this task more manageable. SDKs offer developers a set of pre-built modules and libraries that simplify the process of building dapps, making it possible for developers with limited blockchain experience to build applications quickly and easily.

SDKs offer several solutions that address the challenges of blockchain gaming. For one, they simplify the development process by providing pre-built modules and libraries that can be used to develop complex dapps quickly and easily. Additionally, they provide a secure and reliable infrastructure that ensures that the dApp runs smoothly and is protected against security threats.

Furthermore, SDKs make it easy to integrate dapps with blockchain networks, providing developers with access to the underlying blockchain infrastructure and enabling them to build decentralized applications that can run on a decentralized platform. They also offer user-friendly interfaces and tools that make it easy for developers to build, test, and deploy dapps, even if they have limited experience with blockchain technology.

In 2022, according to the Alchemy Q4 report, there was an 87% growth in Ethereum SDK installs, which comprised ethers.js, web3.js, hardhat, and, in comparison to 2021. Additionally, there was a 16% increase in installs during Q4 when compared to Q3 of the same year.

Several companies are now offering SDKs for blockchain gaming. Mirror World, for instance, aims to improve the onboarding process for new Web3 users while providing the highest level of security for their assets. The company provides infrastructure for projects to seamlessly integrate functions through SDKs with flexible APIs, making it easy for developers to build great games. ChainSafe, on the other hand, offers open-source node implementations and developer tools for Web3 gaming developers with easy drag-and-drop prefab, enabling developers to build marketplaces, create skins, and enable high-level customization. Unix provides drag-and-drop pre-built tools for game marketplaces or connections to external contracts and a high level of customization.

Unity, a leading game developer platform, is also venturing into the world of Web3 gaming by launching a “decentralization” category in its online store and adding support for 13 blockchain-based software developer kits (SDKs). These include Dapper Labs’ Flow blockchain, Algorand, Aptos, Immutable X, MetaMask, Solana, and others, enabling game developers to connect with Web3 gaming.

February 2023 saw several exciting developments in the world of blockchain gaming. With the help of SDKs, developers are creating decentralized blockchain games that allow players to own and trade game assets securely and in a decentralized manner. By simplifying the development process, offering a secure and reliable infrastructure, providing integration with blockchain networks, and offering user-friendly interfaces, SDKs are unlocking new possibilities for gaming and creating new opportunities for players and developers alike.

4. Immutable X Gaming Passport: the instant wallet onboarding solution for Web3 games

Web3 game studios face two major challenges: security and player onboarding. The unique requirement for Web3 games to have a crypto wallet leads to confusion and skepticism for players. Most wallet solutions available today are not designed for gamers and detract from an immersive gaming experience. To solve these problems, Immutable X is developing Immutable Passport, an instant wallet onboarding solution for Web3 games.

Source: Immutable X blog

Immutable Passport is a non-custodial wallet and authentication solution that simplifies user onboarding through passwordless sign-on and automated wallet creation. Both game devs and users can benefit from it.

For gamers, Passport offers a secure digital wallet, and protection against fraud. More importantly, it provides a non-custodial wallet solution that gives players control over their keys and assets. Also, it allows gamers to conveniently log in to Web3 games using just their email and OTP, and offers seamless authentication across Web3 games and marketplaces.

Due to Passport’s streamlined user experience, it can help drive adoption across mainstream audiences. It empowers developers to create dapps with enterprise-grade security and scale their projects globally. Ultimately, the solution maximizes user conversion and studio revenue.

It’s also worth noting that Passport integrates vertically across Immutable’s entire tech stack, providing game developers access to marketplaces, gamers, and infrastructure to make the most of the network.

Source: Immutable X

Immutable Passport is planned for release in April 2023, and new features will continue to be added in the following months. However, developers will be able to begin the Passport integration in the coming weeks. Immutable’s first-party games, Gods Unchained and Guild of Guardians, have already begun implementing Passport as their wallet and authentication solution.

Additionally, Polygon, a popular scaling solution for Ethereum, has recently launched its long-awaited zero-knowledge-powered ID protocol. This feature will allow developers to use its ID service to launch exclusive content for verified users and meet regulatory compliance obligations, attracting more users and developers to its platform. At the end of March Polygon will launch their zero-knowledge mainnet.

Immutable X Gaming Passport and Polygon zkID seemed to be excellent solutions for game developers who want to drive adoption across mainstream audiences, maintain enterprise-grade security, and achieve global scalability. With seamless player onboarding, frictionless purchases, and smart heuristics and ML, Passport ensures an optimal gaming experience for players.

Gods Unchained and Illuvium unveil exciting updates

As seen in the previous section, Immutable X is becoming increasingly important for blockchain gaming, and looking at its top games, Illuvium and Gods Unchained have been making significant strides in the month of February. While the former has announced the launch of Illuvium Beyond, a new game that combines PFP collection and NFT gathering, the latter has moved into its first public pre-alpha for its new mobile client.

Gods Unchained, a popular blockchain-based card game, began its first public pre-alpha test for its new mobile client on 24 February, 2023. The pre-alpha test was initially open to elected members of the Council of Mortals and those with access to Mount Olympus. The pre-alpha test will enable invited players to try out the Gods Unchained gameplay on their Android devices and provide feedback to the development team to fix bugs and enhance the user experience.

The Gods Unchained mobile alpha test will be available for Android devices, and an iOS version will be made available later. Anyone who played Gods Unchained during February will have a chance to receive an invitation to participate in the mobile pre-alpha test. Furthermore, Gods Unchained NFT trading volume for the past 30 days was $15.28 million, an increase of 38.52% from the previous month. What’s interesting is that the number of traders almost doubled, reaching 14,113.

Source: DappRadar

On the other hand, Illuvium has recently announced the launch of Illuvium Beyond, a new game that combines PFP collection and NFT gathering. Illuvium Beyond is centered around Illuvitars, which are collectible, customizable, PFP-type NFTs that represent Illuvials from the Illuvium world. The uniqueness of each Illuvitar comes from the customization choices made by the players.


Illuvium will soon hold a sale for D1sk packs that contain a random Illuvitar and three accessories. The standard D1sk pack contains an extra Tier 0 Illuvitar, while the Mega pack includes an extra rare Illuvitar. The first wave of the sale will feature 25 different Illuvials and will begin on 7 March. Some D1sk packs will be marked as “alpha” packs and cost five times the regular price. It’s worth mentioning that Illuvium Land, in February made over $840,000 in sales.

5. Virtual worlds trading volume spikes 226% reaching $145 million

Virtual worlds have seen significant growth in the past months, and the trend has continued into February. According to the latest data, trading volume and sales count have increased dramatically, reaching levels not seen since May 2022. This performance was primarily driven by the success of Otherdeeds and the first land sale of 2023 by the Sandbox.

In January 2023, trading volume reached $44.5 million, a 114% increase from December 2022, while sales count decreased by 19%, reaching 25,224. In February, trading volume skyrocketed to $145 million, an increase of 226% from the previous month. Furthermore, sales count increased by 103.5% to 51,346, the highest number ever recorded.

Otherdeed’s performance was once again particularly impressive, generating $137 million in trading volume, a 263% increase from the previous month. The surge in trading volume was largely driven by the hype surrounding Yuga Labs’ launch of Sewer Pass and a behind-the-scenes look at the design process for Otherdeed environments, which created a lot of buzz.


Otherdeed environments come in five tiers, each of which determines the Otherdeed’s grandeur in relation to others. A design system was created to ensure that all Otherdeeds with the same environment tier are relatively equal in size and layout, while the differences between lands of the same tier appear in the form of resources, sediments, and artifacts. Otherside contains 28 unique environments that together make up a truly weird and wonderful metaverse.

Source: The Sandbox

On 14 February, the Sandbox had the first land sale of 2023, called ‘Voxel Madness’. This sale follows The Sandbox’s new raffle system, where players must have an account with a verified identity (KYC) and hold 1,011 SAND tokens in their connected wallet to enter the raffle. Any non-purchased plots will go up for auction on OpenSea. The sale featured plots near partners such as Invincible, Voxies, Cut the Rope, Dungeon Siege, and more, with premium lands including a bundle of NFTs for use in The Sandbox from sale partners.

The growth in virtual worlds dapps is an exciting development, driven by the increasing interest in NFTs and metaverse technologies. As more dapps are launched and new features are added, we can expect this growth to continue throughout the year, providing new opportunities for users and investors alike.

6. $148 million raised by blockchain games and metaverse projects

In January 2023, we saw an impressive $156 million raised in blockchain game investments. Now, in February 2023, we continue to see strong investments in the space, with a total of $148 million raised. While this may be slightly lower than January’s total, it’s still a positive start to the year for blockchain game investments.

Of the $148 million raised in February 2023, 65.2% is going towards games and the metaverse, 26.1% is going towards infrastructure, and 4.3% is going towards NFTs.

One standout investment from February is Kratos Studios, which raised $20 million and acquired IndiGG. Kratos Studios is building a Web3 gaming decentralized autonomous organization (DAO) under the IndiGG brand, which they acquired through a token swap. With this funding, Kratos Studios plans to build distribution rails in emerging markets for global Web3 games. The DAO will also invest in identifying, building, and developing the most promising Web3 games across the world.

Kratos Studios’ investment in IndiGG shows the growing importance of DAOs in the gaming industry. A DAO is a decentralized organization that is governed by its members and operates using smart contracts on a blockchain. By building a Web3 gaming DAO, Kratos Studios is positioning itself at the forefront of a new era in gaming.

Additionally, Mino Games raised $15 million to create its Dimensionals collectible character game with Web3 features. This investment will allow the company to build an exciting game that leverages the benefits of blockchain technology. Furthermore, Amazon led a $20 million investment in Superplastic, an entertainment firm that creates synthetic celebrities such as Janky and Guggimon. With this investment, Superplastic can further develop its innovative approach to entertainment and explore the potential of blockchain technology in creating immersive gaming experiences.

Overall, we’re definitely seeing a shift towards the DAO world, especially in gaming. DAOs offer a new way of organizing and funding projects, and they provide more transparency and decentralization than traditional organizations. While we’re not yet seeing the same level of investments as we did in February 2022, the start of the year is relatively bullish for blockchain game investments.

7. From Sweat Economy to Genopets: what’s next for Move-to-Earn dapps?

In 2022, move-to-earn dapps emerged as a popular trend in the dapp industry, providing users with the opportunity to earn tokens simply by completing tasks or moving. These dapps gained a lot of attention and momentum in the market, attracting a large user base. However, the Terra Luna collapse in 2022 caused many of these dapps to struggle, and some have been unable to regain their footing since.

Despite this, many projects in this space have continued to build, and some have even introduced new features and improvements to enhance their user experience. In February 2023, some of the most popular move-to-earn dapps included Sweat Economy, Dustland, Stepn, and Genopets.

Sweat Economy is one of the most notable move-to-earn dapps, having gained significant momentum since its launch. The app allows users to earn tokens by simply moving, and it has seen a decline in user activity in recent months. Nonetheless, the Sweat Economy team announced the launch of US SWEAT and Sweat Wallet in February 2023. This move is expected to create new opportunities for users to earn tokens by allowing US residents to receive their SWEAT allocations through the Sweat Wallet in proportion to their current Sweatcoin holdings.

In addition, the team recently announced that Sweat Hero closed beta is underway. This new NFT game allows users to compete in a step battle to win SWEAT. Sweat Economy remains a popular option for users who want to earn tokens by completing simple tasks.

Dustland is another move-to-earn dapp that has remained popular despite a slight decline in user activity. The app offers users the opportunity to earn tokens by completing tasks, and it has introduced a new token called DOSE. The DOSE token can be used to mint the Mocaverse NFT, which has increased the app’s appeal to users.

Stepn is another move-to-earn app that has faced challenges but is set to launch new features soon. The app saw more than 700,000 monthly active users at its peak in May 2022, but this number has since decreased. The new features will include apps on the demand side that onboard consumers from Web2 to Web3, providing them with liquidity for their NFT swaps and tools to launch their own projects.

Finally, Genopets is one of the most successful games on the Solana blockchain, offering users the chance to earn tokens by completing tasks. The app has introduced two new mini-games in February – Feed and Fetch – that allow users to interact with their Genopet and earn tokens by completing fun and engaging tasks. These new features add a new dimension to the gameplay and keep users engaged in the app. Read this guide to find out more about Genopets.

In conclusion, move-to-earn dapps remain a popular trend in the dapp world, despite some fluctuations in user activity. Sweat Economy, Dustland, Stepn, and Genopets are just a few examples of the most popular dapps in this space. With new features and developments on the horizon, these dapps are likely to continue growing and attracting new users in the coming months.

8. Conclusion

The blockchain gaming industry faced some challenges in February 2023, with a decline of 12.33% in on-chain gaming activity compared to the previous month. However, these challenges did not overshadow the potential and excitement surrounding the industry. Despite the drop in activity, blockchain games still made up 45% of the dapp industry activity. This indicates the persistent interest and demand for blockchain-based games and their potential to transform the gaming industry.

Moreover, Unity’s entry into the Web3 gaming space by providing game developers with 13 blockchain-based SDKs is a significant development that can catalyze growth in the industry. It provides game developers with the tools to create and connect their games to the blockchain, enabling them to explore new revenue streams and build decentralized gaming experiences for their players.

Virtual worlds also saw significant growth in February 2023. The trade count for virtual worlds doubled to 51,000, resulting in a 226% increase in trading volume, reaching $145m. This surge in trading volume signifies a rising interest in virtual land and virtual items in blockchain-based games and virtual worlds.

Finally, investments in blockchain games and metaverse projects totaled $148M, demonstrating the continued interest and potential of the industry. While February 2023 may have been a slower month for blockchain gaming, it did not diminish the potential of blockchain-based games and the growth prospects of the industry.

In conclusion, blockchain gaming presents exciting opportunities for players, developers, and investors. Despite some challenges faced in February 2023, the industry is showing signs of growth, and with new developments and investments, it has the potential to transform the gaming industry as we know it.

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