Only $23 million invested in Web3 Gaming during July

AI Dapps outperform Game Dapps in the blockchain industry. The blockchain gaming and metaverse sectors have been at the forefront of technological innovation and have constantly transformed the landscape of digital entertainment. The July 2024 DappRadar report, powered by the Blockchain Game Alliance, provides a detailed look at the latest trends, milestones, and investment patterns in these dynamic industries.

Key Points

* In July, the dapp industry recorded over 15 million daily unique active wallets (dUAW), with game dapps reaching 4 million dUAW, a 79% increase from the previous month, setting a new record. * Ronin remained the top blockchain ecosystem for gaming activity, with 1 million dUAW, driven by the success of games like Pixels and Lumiterra. * Roninerse maintained its status as the leading NFT metaverse collection, achieving the highest trading volume of $4 million. * Investments in blockchain games totaled $23 million in July, marking the lowest funding level since the third quarter of 2020.

State of Blockchain-Based Games: July 2024

The dapp industry reached a significant milestone in July, with over 15 million daily unique active wallets (dUAW) interacting with blockchain applications. However, for the first time, game dapps have been surpassed as the leading category. AI-powered dapps, including platforms like DIN and Alaya AI, now take the top spot, with 28% of the total market share. Game dapps, although still experiencing solid growth, now represent 26% of the market, involving 4 million dUAW, a notable 79% increase from June.

The rapid rise of AI dapps reflects the continued enthusiasm for artificial intelligence, which is transforming the blockchain landscape. Despite losing its leadership position, blockchain games continue to thrive, particularly on platforms like Ronin, powered by popular titles like Pixels and Lumiterra. Other blockchains, such as opBNB, Near, and WAX, are also making significant contributions to the sector's growth.

The best gaming Dapps

BoomLand emerged as the flagship game of UAW in July, taking advantage of the conclusion of its season 1 launch event. This platform, hosted on Immutable's zkEVM network, has further solidified its place in the blockchain gaming ecosystem. SERAPH: In the Darkness, an action role-playing game that was launched in mid-month, had a solid debut and quickly rose to fifth place in the gaming rankings.

This rapid rise highlights the growing interest in innovative gaming applications. Meanwhile, other major platforms continue to experience incremental improvements, with titles like Catizen on the TON blockchain and Alien Worlds on WAX maintaining their positions.

Investments reached historic lows

Despite activity in the gaming sector, a notable decrease in investment occurred in July 2024. The $23 million invested in three deals marks the lowest funding level since the third quarter of 2020. Notable investments include:

• NPC Labs raised $18 million in seed funding to develop its L3 blockchain for games.
• Soccerverse secured $3.1 million, positioning

for a full launch in the fourth quarter of 2024.

• Pixelverse expanded its recent funding round by $2 million, bringing its total to $7.5 million, to accelerate the global expansion of its game PixelTap.
• While this decrease reflects seasonal trends, confidence in the long-term potential of the sector remains strong, particularly for infrastructure projects aimed at improving the web3 ecosystem.

Metaverse and NFT Trends

Although the initial enthusiasm around the metaverse has waned, development continues behind the scenes. Mocaverse stands out as the leading collection of NFT metaverses, achieving the highest transaction volume of $4 million in July. The Otherside metaverse also launched "Project Dragon," an NFT-based game featuring monthly gaming events. This project, developed with ApeChain and the Otherside Developer Kit (ODK), exemplifies the ongoing innovation within the metaverse.

Final Thoughts

July 2024 marked a turning point in the decentralized applications industry, as AI-driven applications surpassed games as the dominant category. However, blockchain-based games continue to grow, and several platforms are contributing to the evolution of the sector. While investment levels decreased, strategic funding of key projects suggests confidence in the long-term potential of blockchain-based games and the metaverse.

These sectors, characterized by their resilience and constant innovation, are likely to continue growing as they adapt to new technologies and trends. Looking ahead, the foundations laid in 2024 will shape the future of blockchain games and the metaverse, and advancements

In AI and infrastructure will play a crucial role. You can read the full report here.