Is the GameFi Bubble About to Burst? | 2022 Q1 GameFi Industry Report |

In 2017, the cryptocurrency game industry experienced a meteoric rise in market capitalization. GameFi is one of the tokens used for payments and has seen its price increase from $0.01 to nearly $20 per token since then. However, recent trends indicate that this bubble might be about to burst soon with an impending bearish trend predicted by analysts as early as 2022

The “gamefi 2022” is a report that gives an overview of the state of the GameFi industry. It includes information on the market, as well as forecasts for 2022 and 2023.

Is the GameFi Bubble About to Burst? | 2022 Q1 GameFi Industry Report |

In 2022, the crypto market had a severe drop, but not all sectors followed suit. Capital is flooding into the GameFi business at an unprecedented pace in 2022, indicating that the finance market is quite active. The GameFi’s entire Q1 investment amount increased 194.19 percent year over year, with money chasing start-up gaming ideas and the industry improving.

Footprint Analytics, a visual data analytics platform, and DeGame, a Web 3.0 NFT game infrastructure platform, have released a research that examines the performance of the GameFi business in the first quarter of 2022.

They cover the following topics:

  • Market statistics and trends in general
  • Performance of GameFi on several blockchains
  • Investment and development finance
  • A closer look at STEPN, the quarter’s most important initiative. 

Here are the most important takeaways from the recent quarter’s events in the GameFi sector.

I. The market for GameFi was steady.

Due to market patterns that coincided with swings in the BTC market cap, the overall market capitalization of all GameFi tokens declined by 15% in Q1. However, the overall number of GameFi subscribers remained at 1.2 million in the fourth quarter of 2021.

Is the GameFi Bubble About to Burst? | 2022 Q1 GameFi Industry Report |Footprint Analytics & DeGame – Q1 GameFi Users

In Q1, the overall transaction volume of all GameFi initiatives was $6.322 billion. WAX, Hive, and BSC were the top three chains by transaction volume according to GameFi. WAX is the most popular, accounting for 77.7% of total gaming volume across all chains.

On Jan. 9, the daily trade volume peaked at $205.8 million before declining.

II. Many chains are still not diverse.

In Q1, a single major, successful project continued to dominate most chains in terms of users. The exceptions to this pattern are BSC and Ethereum, which have a very equal distribution. 

Is the GameFi Bubble About to Burst? | 2022 Q1 GameFi Industry Report |Footprint Analytics & DeGame – Market Share of Gamers (Q1)

Here are a few examples of imbalanced ecosystems and the games they play:

Alien Worlds Wax (100 percent of total users)

Splinterlands Hive (99.9 percent of total users)

Axie: Ronin (100 percent of users)

Upland EOS (94.1 percent of users)

III. Game Token Liquidity in 2022 Q1

GameFi project tokens accounted for 20% to 30% of tokens listed on centralized exchanges in Q1 2022, and the trading volume of the head game tokens is exceptionally large, with the bulk of the market share.

Is the GameFi Bubble About to Burst? | 2022 Q1 GameFi Industry Report |Footprint Analytics & DeGame – 2022Q1 Avg Token Vol

STEPN, whose governance token, GMT, had an average daily trading volume of approximately $100 million and was the top performing network in terms of token liquidity realization, had the greatest daily token trading volume. Gala Games, The Sandbox, and Decentraland came after it.

IV. Investment in GameFi increased by 194.19 percent in the first quarter of 2022.

When compared to the same period last year, the GameFi market experienced a 194.19 percent rise in Q1 financing and a 40.78 percent reduction season-over-season. Indie games—video games made by individuals or small production teams—were at the forefront of all project categories in terms of both the quantity and amount of financing than any other kind of GameFi project.

Is the GameFi Bubble About to Burst? | 2022 Q1 GameFi Industry Report |Footprint Analytics & DeGame – Funding Trends

In Q1, GameFi had more seed rounds than any other kind, with strategic rounds raising the most money. Polygon-based projects got the greatest finance in terms of both money and number, while Animoca Brands was the most active investor.

With inventive plays, V. STEPN dominated the quarter.

STEPN, a Solana-based move-to-earn GameFi app, debuted in January and quickly surpassed 21K daily and 66K monthly user activities in February.

Since its inception in January, the number of new daily top-up users has steadily increased, with the current daily top-up user count hovering at 5-8K. The daily incoming and outgoing sums in the official GST wallet have surpassed 10 million USD, with daily withdrawals and deposits indicating a stepwise and considerable increase by the end of March. The net inflow and outflow, on the other hand, have been in a dynamic equilibrium.

Is the GameFi Bubble About to Burst? | 2022 Q1 GameFi Industry Report |Footprint Analytics & DeGame – STEPN GMT Price & Trading Vol


While it may seem like GameFi is in a bubble, data from Q1 shows that the sector has performed well in comparison to the overall crypto market. The market capitalization of gaming initiatives remained constant, token liquidity rose, and venture capitalists continued to exhibit strong interest in new businesses. Additionally, new use cases such as move-to-earn have made it possible for GameFi to be used more widely. 

Many chains, on the other hand, are still having trouble diversifying their ecosystem, which might constitute a systemic danger to both the chain and the head GameFi projects that rely on it. 

Read the entire 2022 Q1 GameFi Industry Report by Footprint Analytics and DeGame to have a deeper understanding of each of these developments. 


Footprint Analytics Overview:

Footprint Analytics is a one-stop shop for analyzing blockchain data and uncovering insights. It cleans and unifies on-chain data so that users of any skill level may begin exploring coins, projects, and protocols right away. Anyone may create their own personalized charts in minutes using over a thousand dashboard templates and a drag-and-drop interface. With Footprint, you can discover blockchain data and invest more wisely.  


DeGame Information: is a Web 3.0 NFT game infrastructure platform under Singapore-based blockchain company L2Y Research. DeGame aims to become the most comprehensive aggregator of Steam and GameFi MarketCap in the Web 3.0 world. With DeGame, players and investors can better identify and discover high-quality games and Play-to-Earn earning opportunities through its one-stop solutions: game searching, data tracking & analysis, strategy, download, and more functions. 

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The “elfin kingdom how to play” is a new game that has been released on the Google Play Store. The game has skyrocketed in popularity, and many people believe this could be the beginning of the end for GameFi.

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