A new report from DappRadar has highlighted the uptrend of new gamers in the play-to-earn (P2E) industry, underscored by an increase in daily Unique Active Wallets (dUAW) in 2024.
dUAW climbed by 421% over 12 months to reach an all-time high of 7.4 million by the end of 2024. DappRadar analysts disclosed the metric in its Blockchain Gaming Yearly Report, delving into key industry trends in what pundits are describing as a “watershed” year for the industry.
DappRadar said the industry has enjoyed sustained growth on the retail side of things, which is characterized by new active users and a raft of gaming innovations. While the broader Web3 market went through a turbulent bear market, the blockchain-based segment displayed resilience.
“2024 was a transformative year for blockchain gaming, marking a shift toward mainstream adoption,” read the report. “The year saw remarkable user growth, the launch of ground breaking technologies, and significant strides in engaging non-Web3 users.”
The figures translated to nearly 6 billion on-chain gaming transactions over the year, while DappRadar added over 1,500 new blockchain-based games to its directory. Leading titles by on-chain metrics include Pixels and World of Dypians, employing non-fungible token (NFT) and metaverse elements in their design.
Immutable, a blockchain-based gaming platform, surpassed Ethereum’s NFT trading volumes by well over $300 million.
The report highlighted several reasons for the flurry of activity in the blockchain-gaming sector, attributing a chunk to the valuation spike of virtual currencies. BTC, with market capitalization teetered toward the $4 trillion mark, attracted new users from traditional gaming circles, according to the report.
Telegram played its part in onboarding a new gaming demographic, with Hamster Kombat racking over $300 million users within months of its launch. The Open Network (TON) contributed a significant chunk of dUAW gaming metrics for the sectors, hosting an array of decentralized applications (dAPPs) for a broad audience.
Ubisoft (NASDAQ: UBSFF), Sony (NASDAQ: SONY), and Sega, leading mainstream game developers, pitched their tents with blockchain in 2024, setting off a domino effect for the rest of the ecosystem to follow suit.
The soaring numbers for blockchain gaming were not without their downsides, with the report noting a decline in VC activity in 2024. 2024 was the lowest point since 2020 for investment in the space despite the raises from The Sandbox and Andreessen Horowitz (NASDAQ: ZADIHX).
However, the report predicts a spike in adoption this year as mainstream firms focus on the sectors. The upswing of the metaverse and digital collectibles are expected to add tailwinds to blockchain gaming sails as early as the first two quarters of the new year.
Gaming companies are leaning on generative AI despite employee concerns
As generative artificial intelligence (AI) grows in leaps and bounds, the emerging technology is finding widespread application in the gaming sector with key players in the ecosystem leaning on AI.
According to a State of the Game Industry survey, the number of game development firms turning to AI is at an all-time high, stoking employee fears of job losses. Over half of surveyed respondents affirm that their companies rely on AI in designing video games, a spike from 2023’s survey.
The study, a collaborative effort between Omdia and the Game Developers Conference, interviewed over 3,000 developers from different firms.
36% of employees in the gaming sector indicated a steady use of AI tools in their game development roles, noting the perks of productivity and efficiency in mundane tasks. However, 30% of industry players say that AI will adversely affect the sector, potentially eroding the claims of improved productivity.
For the disgruntled employees, they argue that AI will inflame existing sector challenges, including energy consumption and IP theft. The grimmest fallout of rising AI adoption by the sector appears to be job losses, with surveyed employees bracing themselves for mass industry layoffs.
On the part of the enterprises, AI tools are deployed en masse for their cost and time-saving benefits with recent leaps in generative AI capable of pushing the frontiers of game developments.
Aware of the impending job cuts, Electronic Arts CEO Andrew Wilson noted that the job cuts are part of the growing pains for the industry, noting that the trend will only be short-term. Wilson argues that, in the end, AI will provide an explosion of jobs for the sector as the emerging technology becomes mainstream in the ecosystem.
Gaming sector layoffs have gathered steam since 2024, with Sony and EA laying off over 1,500 employees. A closer look reveals that smaller game developers are toeing the same path, cutting their employee sizes with rising AI adoptions.
The report also highlighted an increase in the number of female game developers, consuming up 11% of the share held by the male demographic in less than a year. On the other hand, the idea of a live-service title appears to be popular, with only 13% of surveyed respondents indicating an interest in exploring the concept.
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