Why Investing in Web3 Gaming is Booming in 2024

Web3 gaming offers a unique investment opportunity, especially amid current market trends. Despite a recent downturn, the sector’s potential for innovation and growth remains strong. Emfarsis, a Web3 advisory firm, emphasizes the strategic advantages of investing in early-stage Web3 gaming projects. This article explores key market trends, investment rationales, and future prospects for Web3 gaming, highlighting its transformative impact on the digital economy.

Key Takeaways

• Strategic Opportunity: Investing in Web3 gaming offers the potential for significant returns amid market fluctuations.

• Innovative Growth: Web3 gaming drives innovation and has a transformative impact on the digital economy.

• Promising Sector: Despite downturns, the sector remains strong with builders pitching innovative ideas and delivering exciting MVPs.

Investing in Web3 Gaming

Investing in Web3 gaming presents a strategic opportunity amidst market fluctuations, with the potential for huge returns. The sector’s innovative spirit and transformative impact on the digital economy make it a promising opportunity for forward-thinking investors seeking long-term growth and social change.

Current Market Trends

With game tokens down 37% overall in 2024, there is been some talk that Web3 gaming is dead. However, crypto is cyclical, and this downturn is nothing new. This presents a perfect time for investment, especially for those focused on seed and pre-seed stages.

Investment Rationale

Having emerged from the Crypto Winter, but not yet overpriced by the crypto bull run’s high valuations, now is a unique time for investment. Builders are pitching innovative ideas and delivering exciting MVPs. Web3 gaming is expected to drive innovation, adoption, and impact more than any other sector.

Emfarsis: Mission and Vision

Today, Emfarsis is investing in and advising early-stage Web3 projects, with a focus on gaming. The interest in blockchain began in 2016 due to its potential to empower marginalized groups, redistribute wealth fairly, and improve global lives. Web3 is seen as a force for good.

The Journey to Web3

In late 2017, the move to fully embrace Web3 began, joining a crypto payments startup aimed at helping business operators compete fairly with banks. Despite the tough education efforts, the potential of technology was evident. The question emerged: “What is the point of world-changing if people are not using it practically?”

The Promise of Play-to-Earn

Making money by playing video games changed everything. The play-to-earn model was discovered early, before it became mainstream, showing its potential to engage users globally. Axie’s success in the Philippines confirmed the belief in crypto's power to empower underserved communities.

Read more: What is Immutable? The Future of Web3 Games

The Axie Phenomenon

At its peak in July 2021, Axie had nearly 3 million daily active users, mostly from emerging economies. Sky Mavis achieved this without simplifying blockchain or lowering participation costs. Axie created a Web3-native experience where anyone contributing value could benefit.

Scholarships and Innovation

Scholarships, a player-driven business model, helped onboard new users by addressing rising NFT prices. While now less relevant due to free-to-play models, they showcased the potential of community-driven innovation in Web3 gaming.

Future Trends in Web3 Gaming

Web3 games are evolving with trends like composable “modding” and fully on-chain games (FOCG). These games, despite slow progress and low DAU, represent Web3’s R&D sector. They will likely lead to unique tokenomics and novel user experiences.

Angel Investing Insights

Angel investing began with the realization that mass adoption was possible without simplifying Web3 elements, making crypto more engaging and educational. This insight highlights a massive total addressable market (TAM) for Web3 gaming.

Growth and Progress in Web3 Gaming

As of July 2024, there are over 994 quality Web3 games across 70 blockchains, spanning multiple genres. This rapid development shows the sector's growth, with gaming driving active engagement in Web3. Gaming remains the most promising use case for blockchain technology.

Looking Ahead: The Next Big Opportunity

Investors are eager to know: what will be the next Axie to ignite the next bull run? Consistent building, progress, and originality from Web3 developers will continue to drive growth and engagement in the sector.

Read more: Most Popular Telegram-Based Crypto Games: From Hamster Kombat to Catizen

Conclusion

Web3 gaming presents a strategic investment opportunity despite current market fluctuations. The sector’s innovation, potential for growth, and impact on the digital economy make it a compelling choice for forward-thinking investors. Emfarsis highlights the benefits of investing in early-stage Web3 gaming projects, which promise long-term growth and social change.

FAQ

What is Web3 gaming?

Web3 gaming integrates blockchain technology to create decentralized games where players can own and trade in-game assets.

Why invest in Web3 gaming now?

Despite recent market downturns, Web3 gaming shows strong potential for growth and innovation, making it a strategic investment opportunity.

What are the benefits of play-to-earn games?

Play-to-earn games allow players to earn real money by participating in the game, making gaming more engaging and potentially profitable.