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Despite bear market, the cryptogames sector keeps growing

Even though market sentiment is likely as bad as it gets, August saw about USD 748 million flow into the cryptogames sector.

By Finst News
• 3 min read
Despite bear market, the cryptogames sector keeps growing

Even though market sentiment is probably as bad as it gets, August saw about USD 748 million flow into the cryptogames sector.

For much of the crypto market, 2022 has been an absolute train wreck so far. Market capitalization has fallen by nearly a trillion dollars since the start of the year, down to about USD 1.1 trillion currently. This year has also seen the largest hack in crypto history. Sentiment in the crypto market has deteriorated over the year, and even now most investors seem to have little interest in the crypto space.

One of the few sectors that appears to have bucked this trend recently is the crypto gaming industry. Despite big price swings in the markets, investments in crypto gaming projects have picked up in recent weeks, and the number of crypto gamers appears to be rising again.

Number of crypto gamers is growing again

According to crypto analytics firm DappRadar, the number of crypto game players has risen since August from about 800,000 to just under 950,000 players at present — an 18.75% increase.

Another positive development was the total volume of traded NFT game items. Between July and August, it rose by 13.25%. Additionally, a report from DappRadar shows that the number of NFT games sold in the same period also grew. The report notes that a total of 1.3 million NFTs were traded in the crypto gaming sector — in early July, that number was 600,000. Still, total trading volume in the crypto gaming sector remains relatively low versus the start of the year.

Investors pile into USD 748 million

That didn’t stop investors from continuing to pour hundreds of millions into the niche. In August, investments totaling USD 748 million flowed into crypto game projects, up 135% versus July 2022.

According to DappRadar, 38% of investments went to infrastructure projects for crypto games, 33% to games, and 27% to investment firms actively investing in the crypto game ecosystem.

Total sector investments in Q3 were USD 1.1 billion.

This is certainly lower than in Q1 and Q2 of 2022. On the other hand, crypto gaming has now been by far the most popular sector among institutional blockchain investors for 12 straight months compared with other crypto sectors.

By the end of 2022, DappRadar expects total investments in crypto games to reach about USD 10.2 billion, more than double the USD 4 billion invested in 2021."

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