GameFi now accounts for 16.4% of all blockchain investments.

May. 2022, Vincy

Data Source: Footprint Analytics — 2022 Funding Potential GameFi Projects

Investment focus in the blockchain industry is gradually tilting towards gaming, driving a huge rise in the number of projects, funding, transactions and participants in this sector of the market.

According to Footprint Analytics, the total number of GameFi projects reached 1,498 as of May, up 99% YoY, and the amount of investment in the first half of the year reached $3.7 billion, surpassing the total of $780 million for the entirety of 2021.

This article will assess which games have potential and which games are losing attention in the first half of 2022.

Overview of GameFi Project Financing in the First Half of the Year

The GameFi sector has gradually increased its proportion in the entire blockchain sector, with a total investment of $22.5 billion. The GameFi sector accounted for 16.4% of the total investment, with total investment at $3.7 billion.

Financing GameFi Project Analysis

The Sandbox and Phantom Galaxies

In terms of total investment rankings, in January, metaverse game developer Animoca Brands announced the completion of a $359 million funding round, led by Liberty City Ventures. Metaverse-related game projects are in a positive phase.

The Sandbox, Phantom Galaxies and REVV Motorsport are all Animoca Brands’ game projects.

• The Sandbox is Animoca Brands’ flagship game, a sandbox game that builds a metaverse. At the end of last year, after the launch of the alpha game, the rapid user growth was detonated. But its user base and market value are currently declining due to the public test version game’s delay in opening to the public. The game ecosystem needs constant user participation and maintenance to be stable.

• Phantom Galaxies is a AAA game set to launch its beta in Q3. Gameplay will revolve around an open-world online space sim with fast-paced mech shooters and a compelling story. Players can customize the game’s mechs and ships to go out on missions, solve puzzles, and collect resources to craft.

The end of last year was a time when metaverse projects were at their peak and this sector had the most potential. But as the metaverse project The Sandbox did not go ahead as planned again, the slow launch of Phantom Galaxies will also gradually lose attention.

Civitas

Although some GameFi games have dropped from the spotlight, others have gained popularity.

Civitas announced in April that it had closed a $20 million round of funding led by Delphi Digital and Three Arrows Capital, with participation from Framework Ventures, BITKRAFT, DeFiance Capital, Sfermion, CCP Games, Yield Guild Games, Merit Circle, and YGG SEA.

Civitas is a community-oriented city-building game where players can work individually or collaboratively to upgrade cities through battles. It uses a subDAO model where cities are controlled by the community, allowing guilds to grow as users work and vote.

The game is still in the early stages, and the gameplay is relatively new.

• Accessing the universe of augmented reality through cell phones, players can discover token $CITI as well as play mini-games and find unique resources needed for crafting. With real-world geolocation technology, players will be able to use map views to locate assets and engage in activities scattered throughout the real world.
• If playing on a computer, players interact with land; locate, collect and craft items; and post on the city forum. Users will also be able to access all city tower features, city markets and world map views.

The game received investment from Delphi Digital and Three Arrows Capital before it even went live in beta. Of course, early entrants will need to research its subsequent development path.

STEPN

STEPN closed a $5 million seed round led by Sequoia India and Folius Ventures in January. It is also considered one of the most promising GameFi projects at this stage. It offers financial rewards and introduces an element of social rewards to motivate millions of users through its Move to Earn approach.

Footprint Analytics data shows that $GMT transfers new addresses and active addresses rose in waves.

Summary

For GameFi projects, obtaining capital financing from well-known VCs is crucial to drive development in the bear market, making team expansion, game development user acquisition possible.

This piece is contributed by Footprint Analytics community.

The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.