State of GameFi: Trends, Growth, and Resilience


Despite a general market slowdown post-2022, the Web3 gaming sector continues to show resilience and growth. In 2023, although the number of new Web3 games launched marked a reduction from the previous years, it still signifies a robust interest in the development of blockchain-based games​​. The number of newly developed games has increased by 19% with 550+ games produced in 2023.

Key Statistics

  1. GameFi Volume
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There has been a sharp decline in monthly volume, compared to the last year due to the extended crypto bear run and slowdown in the funding which halted many projects at their beta. The GameFi market volume saw a decline of ~66% from a high in April to the lowest in August.

  1. Distinct Active Wallets
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There was a drop in the number of active wallets on a MoM basis, with the number of wallets dropping over 60% from the previous high in March ~ 2.4 million to 800k in October. A QoQ decrease was also observed in the number of active wallets.

  1. Top Games (as per volume)
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In 2023, Axie Infinity maintained dominance, commanding over 53% of the market share with 830 million transactions . Following closely were MOBOX and Sandbox in second and third positions, respectively. This also highlights the continued preference for casual games within the web3 gaming market.

  1. New Games built per chain
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BNB chain continued to remain a prominent choice with 132 games built on the chain till Nov ’23. However, an emerging trend toward Layer 2 and Layer 3 solutions was also evident as the industry is seeking scalability and efficiency and chains such as Polygon and ImmutableX registered over 25% increase in number of games within a year.

Most Web3 games today adopt the Free-to-Play model, aligning with broader industry trends. However, a notable 26% of games require players to hold specific NFTs for access, integrating blockchain technology into the core gameplay and monetization strategies​​. Further, new incentive models like Play-and-Earn (P&E), Play-to-Own (P20) and Free-to-Own (F2O) also emerged in 2023

Tokenomics evolved, emphasizing two predominant models: the single-token and dual-token systems. The single-token approach utilizes one cryptocurrency for in-game transactions and external trading, while the dual-token system segregates in-game transactions and trading through distinct utility and governance tokens.

STE‌P‌N integrated Apple Pay into its platform for streamlining transactions and Apple Music for improving the user experience which emphasizes the growing synergy between conventional tech giants and the Web 3 world. 

The year 2023 also saw leading Web 2 players like Ubisoft, Zynga and more making strides in transitioning towards Web 3 gaming. This move signifies that established giants have started to recognize the potential and opportunities in leveraging blockchain for digital ownership and tokensied economy.

Expert Opinion

Matthew Ng,  Founder, Racer Club Labs

We witnessed the integration of more sophisticated gaming mechanics and the expansion of player-driven economies, enhancing both player engagement and investment opportunities. The adoption of NFTs in mainstream gaming also gained momentum.

Kseniya Babochkina, CBDO, Qubix Infinity 

A qualitative transformation is underway, transitioning from hype-centric projects to long-term ventures, a shift affirmed by the entry of industry giants like Epic Games into the web3 gaming landscape.

Vasu Sharma, Co-Founder, Ballers

2023 has been a challenging year for the overall crypto space. However, despite market uncertainties, blockchain gaming proved its mettle, showcasing remarkable resilience amid adversities. Now that we are at the cliff of a 2-year-long bear run and the confidence in the markets is resurrecting, it is expected that as the bull run arrives, gamefi, especially Web3 casual and hypercasual gaming genre will be at the forefront in terms of user adoption from the Web 2 ecosystem to Web3 space.

Future Outlook

The GameFi market is projected to reach $2.8 billion by 2028, growing at a 20.4% CAGR from 2022 to 2028. In 2024, this sector is likely to exhibit a noteworthy shift from its earlier hype-driven growth towards a more balanced distribution on platforms such a mobile, browser, PC etc. and a diversified genre preference. 

The entry of established gaming giants into the GameFi space like Ubisoft and collaborations between blockchain platforms and seasoned game developers is likely to attract other established gaming studios in Web 3.

The entry of AAA games in blockchain will drive higher quality games being onboarded and giving gamers an immersive experience which has been lacking previously. Furthermore, the focus on interoperability will fuel the development of cross-chain assets and games.

An intriguing prospect also lies in the revival of classic games in 2024. For instance, ReadyGG has partnered with 20 major Web2 publishers with over 2000 games for migration to Web 3.

Expert Opinion

Shiti Rastogi, CEO, StepN

As GameFi continues to mature, balancing fun, funding, and functionality will be crucial. The focus on user experience, attracting traditional gamers, and improving tokenomics will drive the evolution of blockchain gaming. The influx of talent from traditional gaming studios and ongoing development of innovative projects point towards a bright future for GameFi, as long as it prioritizes engaging gameplay over quick financial gains​​​​​​​​.

Crypto Outlook 2024

2023 was a roller-coaster ride for the crypto sphere, marked by dynamic shifts, innovative advancements, and transformative trends that reshaped the industry’s landscape. Our Crypto Outlook Report for 2024 reflects on the highs, lows, and pivotal moments that defined the past year, while also peering into the horizon to forecast the exciting potential and emerging patterns set to influence the year ahead, with insights from industry leaders at Stepn, Enjin, Hacken, SuperScrypt, and more.

Click here to read the full report!

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