While the popularity of GameFi continues to grow, there are still relatively few really fun games among the 1,322 in total.
In many cases, judging a project’s potential just by looking at screenshots or walkthroughs isn’t enough, because a game’s playability is a subjective point.
Instead, investors and analysts should look beyond the surface and consider the data behind a game. Here are three key metrics to look at when evaluating the health and potential of a GameFi project.
Key Indicators for the GameFi Project
Number of users on the protocol
The number of users is the number of players in the GameFi program and is key to the healthy functioning of the GameFi ecosystem. It also reflects the popularity of the game project among users.
According to data from Footprint Analytics, the number of GameFi users has been increasing since April 2021 and has reached an equilibrium. This is strongly related to the rapid growth of many projects and the continuous development of the GameFi market.
Footprint Analytics – GameFi User Number
The number of users in the chain shows that the public chains with more users in the past 3 months mainly: USED TO BEHive, Polygon and BSC†
Footprint Analytics – Number of users per chain
Amongst them, Splinters, like the Hive chain, has about 300,000 daily users and accounts for more than 98% of the users in the Hive chain. Splinterlands is one of the most popular gaming projects of late, with its native token SPS going for less than $0.1, lowering the barrier for players to join the game due to its low issue price.
There is also the WAX, which has been able to retain a large number of users, showing that the games in the WAX ecosystem are stickier compared to other blockchains. And players can play Alien Worlds for free on the chain and earn $10 to $15 for a few hours of play.
Compare this to Axie Infinity in the Ronin chain, where the average number of daily users has dropped from 120,000 to about 20,000 in the past 6 months. The difference in this number is that most game user activities are performed off-chain and only game props transactions are settled on-chain. Therefore, the high gas rates for on-chain and inefficient on-chain transactions are the reasons for the decline in the user base.
In various successful projects, 3 things stand out:
Must be applicable to all crypto users and accessible, in addition to game types that appeal to users.The Play to Earn model is also an important indicator of high user popularity.To have low gas rates and efficient capabilities.
If the project is not focused on user growth, even if the content richness of the game project gradually increases, it will become worthless without users.
Because GameFi demands more capabilities from the network than traditional gaming, protocols that support these projects require cheaper gas rates and fast transactions. As a result, many blockchains deploy special chains especially for gaming applications and improve the possibilities to facilitate more project usage and user transactions.
According to Footprint Analytics, the number of transactions per capita in the WAX chain has been relatively stable since April 2021, at around 35 to 50 transactions per day, and WAX relies on projects such as Farmers World and alien worldswhich account for more than half of the trades on the WAX.
In terms of capabilities, WAX not only supports high-frequency transactions, but it can also process up to 8,000 transactions per second, which is fast.
In particular, the average number of transactions on Avalanche has increased since January, reaching as many as 50 transactions on March 16. Originally, Avalanche dominated the DeFi field with the popularity of GameFi, but gradually Avalanche shifted to GameFi. For example, Crabada is a game where players can explore the kingdom of Crabada while earning income by mining, looting, breeding, fighting, exploring and crafting. It accounts for most transactions.
Avalanche is an EVM-compatible L1 chain that focuses on speed and low transaction costs, with transaction throughputs of over 4500 TPS and transaction termination times of less than 2 seconds. It aims to solve Ethereum’s scalability problems.
Footprint Analytics – Transaction per user, trended per chain
As you can see from the data, other blockchains like Near and Moonriver are basically less than 30 transactions per capita.
Transaction volume per capita
Transaction volume per capita refers to the average amount transferred per user. It is a critical metric to analyze GameFi projects as it reflects the level of user engagement and the robustness of the product and tokenomics design. As an investor, you should look at the continued stability of a program’s per capita transaction volume trends, particularly looking for sustained growth in user data and an increase in agreed revenue for gaming-based programs.
One of the most notable declines is OKExChain, which went from a high of $20,487 per capita in May 2021 to almost no volume after October.
The development of OKExChain chain games is relatively slow and the popularity of the projects being planned is relatively low.
Footprint Analysis – Volume per user, trended per chain
As of February, the Harmony, Ronin, and Ethereum blockchains are currently the main battleground for GameFi’s per capita transaction volume, with the most explosive chain tours on these chains ranging from $800 to $4,000 per capita.
In order to judge whether a GameFi project has potential, one has to look at which protocol model it uses. If it uses a protocol model like the one on OKExChain, it is less likely to succeed because the chain ecosystem is slow to develop and there are no further plans; if it uses a protocol model on Hive or WAX, it has more potential because it focuses on user experience and maintaining good user growth.
The GameFi industry is at an early, very volatile stage, making it easy to lose all your money if you’re backing the wrong horse. That is why it is crucial to look at underlying data when analyzing projects.
Date & Author: March 26, 2022, Vincy
Data source: Footprint Analytics – GameFi data by chain
This piece was contributed by the Footprint Analytics community.
The Footprint Community is a place where data and crypto enthusiasts around the world help each other understand and understand Web3, the metaverse, DeFi, GameFi or any other area of the fledgling blockchain world. Here you will find active, diverse voices who support each other and move the community forward.
What is footprint analysis?
Footprint Analytics is an all-in-one analytics platform to visualize blockchain data and discover insights. It cleans and integrates on-chain data so that users of any experience level can quickly begin researching tokens, projects, and protocols. With over a thousand dashboard templates plus a drag and drop interface, anyone can create their own custom charts in minutes. Discover blockchain data and invest smarter with Footprint.
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