After a rough year, January was the most favorable month for the crypto market. While most of what can be said applies to other bull cycles, several stats made January a very interesting month in the blockchain space.
For example, while altcoins tend to trail BTC in performance (first bitcoin season, then altcoin season), the end of January saw exceptional performance in altcoin prices, including those inside GameFi. This indicates that the market is strategically waiting for any sign of positive macroeconomic news to turn back into the highly speculative crypto-asset, despite the carnage of 2022.
Investment in GameFi has continued to dry up, and whether the positive vibes last long enough to revive VC interest in blockchain gaming projects remains to be seen. In January, more than half of the funding went to GameFi infrastructure — while investing in specific games or studios remains a risky proposition, VCs are less aloof about the GameFi industry.
The long-awaited AAA blockchain games are starting to hit the market, led by the Beta of Illuvium, which has already seen a lot of activity.
General overview of encryption
- ETH rose from a low of $1,200 at the end of December to $1,660, its best price performance in a year.
- Several notable altcoins have seen a doubling, even tripling, of their values
- New users as a percentage of GameFi’s total users fell to 36% from 38.8% in December
- Active GameFi increased slightly at the end of December
- However, the new GameFi user numbers were the lowest since August 2022
GameFi projects overview
- Illuvium has grown to be the third highest active user on Ethereum even during the Beta
- AXS’ price doubled while Axie Infinity’s market share from transactions grew
- Polygon GameFi users tripled from January. January 1st. 5
- In contrast to other ecosystems, GameFi’s user numbers of BNB are down
Investment and financing from GameFi
- GameFi funding continued to decline, hitting a monthly low of $20.9 million
- 3 projects in the GameFi space received funding in January
Encoder macro overview
The cryptocurrency market had its best month in about a year as the price of ETH surged from the low region of $1,200 at the end of December to the January high of $1,660.
Equity markets also had a positive month. However, the increase in the price of the ETH cryptocurrency for the month of January was more significant than in other bull cycles from the past year, indicating renewed interest in the cryptocurrency.
January was exceptionally favorable for the price of altcoins, and thus the GameFi market.
For example, the prices of three leading GameFi altcoins — SOL, AVAX, and BNB — saw month-on-month (31st of the month) increases.and 146%, 80%, and 26.4%, respectively.
GameFi Market Overview
GameFi’s new user share dropped to 36%.
Monthly GameFi UsersMoreover, the number of new GameFi users was the lowest since August 2021. These stats continue to trend for several months, indicating that people are reluctant to jump back into the GameFi space.
The number of active GameFi users increased at the end of December.
This coincided with the sharp rise in the price of Ethereum. Footprint Analytics counts the active user as a unique wallet that interacted with the blockchain in the previous month. One person can have multiple wallets, but the metric is nonetheless a good indicator of how much activity is happening on the chain.
GameFi projects overview
Even in beta, Illuvium has the third highest active users on Ethereum.
Ranking of the game on the Eth ChainIlluvium is one of GameFi’s most anticipated titles, and its token (ILV) is the highest priced GameFi token.
Axie Infinity has seen its market share grow in transactions, with its token price doubling compared to the previous month.
Axie Infinity’s market share of transactionsAxie Infinity was the first blockchain game to gain widespread recognition in more than a year. Still the best blockchain game by volume.
The number of GameFi users on Polygon has tripled from January. January 1st. 5
Most of these wins came from Arc8 by Gamer on Polygon. The other chains, namely Hive and Wax, have seen increases of 50-100% in the month for this metric, albeit more flatly.
BNB saw a decline in GameFi users in January
January Report of GameFi Active Users
GameFi investment and financing overview
Despite GameFi’s positive numbers, GameFi’s total funding was the lowest in over a year, at $20.9 million.
Only 3 GameFi projects closed funding deals in January
These were: Intella X, Oh Baby Games, and YGG Japan. IntellaX builds gaming blockchain wallet and closes $12M. Web3 Oh Baby Games studio has closed a $6 million seed round. YGG (Yield Guild Games) is one of GameFi’s leading gaming syndicates and has raised $2.9 million for its Japan subsidiary.
The Footprint Analytics community contributed to this piece.
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