Widespread Loss of Gamers
Blockchain games have seen a sharp month over month reduction in unique users playing their games from May to June. Some of the most popular and influential games, such as, Alien Worlds, Axie Infinity and Splinterlands, have seen a 12%, 37% and 9% drop in users respectively.
According to Dappradar, the overall market has fallen 36% in the past month, with 1.25 million active gamers on May 21st compared to 800,000 on June 21st.
Price Reduction Leads to Fewer Users
As the overall crypto market continues to trade lower, with BTC currently hovering around the 20K mark, the cryptocurrencies related to major blockchain games have also seen steep losses. For instance, Axie Infinity has dropped from $73 to $14 in a three month period, while BTC has dropped from $44K to $20K in the same timeframe. This represents a loss of 80% for Axie Infinity while BTC has only lost 54%.
The volume for these blockchain games has fared even worse than their prices. During the same three month timeframe as described above, the daily volume for Axie Infinity has dropped from $2 billion USD to $150 million.
Price and User Relationship
It is a wonder that blockchain games are rapidly losing users. During a global pandemic, one would consider that most people are staying inside more often, thereby increasing their video game playing time. However, blockchain games have recently seen a reduction of users. The reason for this is simple, a lot blockchain games act more as a job than a game.
Blockchain games are still in their infancy, and cannot compete with the graphics or gameplay of the popular non-blockchain games such as League of Legends and Call of Duty. Unlike traditional games, these blockchain games offer a chance at actual currency. For example, gamers that play Axie Infinity can earn $10-50 per day.
While older games may continue to lose users due to being unprofitable during a bear market, there is still hope for new games entering the market. One of the most anticipated games, Illuvium, was able to generate $72 million USD in May for virtual land plots as players flock to the potential profits new opportunities can offer.
Overall, the blockchain gaming market is heavily influenced by the players’ ability and belief to turn a profit. Should blockchain gaming tokens return to their pre-crash price, one would expect to see the number of players rise as well.
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