November 2024 Blockchain Gaming Industry Report: Development and Challenges Driven by the bull run

In November 2024, the Web3 gaming industry achieved significant growth against the backdrop of an overall rise in the cryptocurrency market, but strategies for mass adoption are still being explored. Bitcoin reached an all-time high, approaching $100,000, and the gaming sector's market capitalization surged by 79.1% to $35.1 billion. Despite strong performance in key indicators, with daily active users reaching 5.5 million, the industry still faces challenges in integrating and widely applying Blockchain technology.

Macroeconomic Market Overview

The cryptocurrency market performed well in November, with Bitcoin's price soaring from $69,386 to $96,427, an increase of 39.0%. Ethereum followed closely, rising by 47.8%, from $2,511 to $3,711. Bitcoin's outstanding performance allowed its market value to surpass that of silver and a certain oil company, firmly ranking seventh among global assets after approaching the $100,000 mark on November 23.

The results of the U.S. elections have become an important factor driving the growth of the cryptocurrency market and may influence the future direction of cryptocurrency legislation and regulation. The market has reacted positively to this, especially reflected in the performance of popular areas such as meme coins, decentralized artificial intelligence projects, and decentralized science.

The broader financial markets also performed strongly. The financial sector led the stock market under expectations of tax reform and deregulation. However, there was some volatility in international markets, with certain currencies under pressure due to concerns over trade policy adjustments, while gold prices fell as election-related uncertainties eased.

Blockchain Game Market Overview

In November, blockchain game tokens saw significant growth during the bull run, with market capitalization surging from $19.6 billion to $35.1 billion. The average daily trading volume in this sector exhibited a similar trend, increasing by 79.4% to $11.9 million.

The daily active users reached a new high in November, with an average DAU of 5.5 million, an increase of 15.7% compared to October. This growth is mainly attributed to the sustained user activity on a certain L2 network and the solid performance of a certain gaming ecosystem.

The trading indicators present complexity. Although the average daily trading volume reached 15.3 million transactions (an increase of 3.3% from October), the average number of transactions per user per day dropped from 3.131 to 2.810. The total monthly trading volume remains stable at 460.4 million transactions, and the data indicates a declining trend in the intensity of new users' use of Blockchain features.

The way certain games apply blockchain technology may represent a key turning point for the industry. By positioning themselves as traditional games with optional blockchain elements rather than "NFT games," it reflects that large-scale adoption may require a more subtle integration of blockchain technology. This strategy of "making blockchain functionality optional and invisible" helps to overcome the initial resistance many gamers have towards cryptocurrency, lowering the barrier to entry, but it also raises fundamental questions about the role of blockchain in gaming.

The technical challenges faced by the full-chain games are still significant. The existing Blockchain infrastructure struggles to meet the high throughput demands of real-time gameplay, competitive matchmaking, and modern games. Although Layer 2 solutions and specialized gaming public chains are emerging, the gap between traditional gaming performance expectations and Blockchain capabilities continues to affect development strategies.

Although the current bull run provides favorable conditions for growth, the Web3 gaming sector has yet to produce a defining breakthrough moment. The industry seems to be at a crossroads between maintaining the native appeal of cryptocurrency and achieving mass adoption. For gaming projects to succeed, a good balance between these two aspects is necessary, and the technological infrastructure needs to catch up with the ambitions of the projects.

Overview of Blockchain Game Public Chains

In November, the number of active games on the Blockchain network reached 1,696, an increase of 4.6% compared to October. In terms of game distribution, the market leaders remain a certain trading platform's public chain, Polygon, and Ethereum, with shares of 20.9%, 15.4%, and 13.4% respectively.

The growth momentum of a certain L2 network continues, with a 46.1% increase in average DAU compared to October. This growth is mainly driven by its flagship game, while the platform also benefits from projects migrated from a certain trading platform's public chain.

A certain gaming public blockchain has shown a significant recovery, with November DAU doubling from 600,000 to 1.2 million, thanks to new partnerships that introduced multiple game studios, the launch of new games, and a resurgence in the number of existing game players.

A certain public chain gaming ecosystem is facing challenges, with DAU dropping 41.9% to 116,400, highlighting the on-chain retention challenges of games based on a certain social platform. However, there are always some exceptions in the industry. The average DAU of a certain public chain in November was 233,300, an increase of 23.1% from the previous month. Games on a certain social platform contributed most of the user base, with an average DAU of 224,900, and its weekly new user retention rate can be said to be a model in the current Blockchain gaming industry.

The Web3 gaming industry continues to coexist with both challenges and opportunities. More industry participants are getting involved in the Blockchain gaming infrastructure, and more gaming public chains are emerging. As one of the largest Web3 gaming guilds, a certain organization has launched its Studio Chain, building its own gaming infrastructure.

At the same time, a certain project launched the Open Gaming Layer, with Prime Chain being its first blockchain. Developed by a certain foundation, Prime Chain will provide infrastructure and development momentum for an ambitious sci-fi card game.

Blockchain Game Overview

As of the end of November, there are a total of 3,602 blockchain games in the industry, among which 1,361 are actively participating. Of these games, 298 have attracted over 1,000 monthly active users (MAU), accounting for 21.9% of active games.

Analyzing the game metrics of a certain social platform, we can see a significant gap between platform users and Blockchain participation. As of November 30, a certain game ranked second in monthly active users on the platform with 26.16 million MAU, but its on-chain users were only 736. Even for a certain game that achieved the highest conversion rate among the top 10 games, its user on-chain participation rate was only 7.96%, with 1.36 million on-chain users.

Despite facing these transformation challenges, the success of a certain social platform's gaming ecosystem is inspiring broader imitation among social media platforms. As an instant messaging platform dominated by Japan, Taiwan, Thailand, and Indonesia, a certain application announced plans to launch 30 mini dApps by the end of January, with an expansion to 150 by the end of the first quarter of 2025. These mini dApps will be built on a certain Blockchain, with gaming applications making up the largest portion, while also including social and DeFi applications.

At the same time, a project based on a certain public Blockchain has integrated over 1 million KYC-verified users through a certain short video platform. The success of this platform stems from its seamless onboarding process. Users can access games directly through their accounts, while a Blockchain wallet is automatically created in the background. This achievement demonstrates the potential of the platform as an entry point for Web3 games.

Blockchain Game Investment and Financing Situation

In November, Web3 games secured 18 funding rounds, totaling $73.6 million. Although the number of events increased by five compared to October, the total amount decreased by 22.3%. Additionally, eight events did not disclose the specific funding amounts.

A gaming platform leads this month's funding with $30 million in Series A financing, led by an investment firm. The platform combines gaming, entertainment, and gambling features, achieving a monthly betting volume of $200 million since its launch in March. The platform includes social features such as in-game chat and user tipping, but due to regulatory reasons, it is still unavailable in major markets like the United States, the United Kingdom, and Australia. Despite facing regulatory challenges, the gambling sector continues to attract attention, and several related projects have also secured funding.

Other notable financing news includes a well-known investment institution adding an additional $10 million to a project, continuing to increase its investment from a previous $31.88 million. This investment includes warrants to acquire tokens at a fully diluted valuation of $1 billion, supporting the project's further development of interoperable infrastructure for mainstream cryptocurrency adoption.