Crypto Games Least Affected by Bear Market, VC Investments Remain Strong - DappRadar

cryptonews.com:

Crypto-based play-to-earn games and game-related non-fungible tokens (NFTs) comprise the least affected sector in all of crypto during the current bear market, with venture capital investments continuing to flow into the sector, a new report from the decentralized app tracking site DappRadar has found.

According to the report, the gaming sector in crypto reached a peak as recently as June this year, when it finally experienced a slowdown as measured by the number of unique active wallets (UAW).

By comparison, the number of daily active wallets on the Ethereum (ETH) network as a whole reached a peak of well over 1m in May 2021, which it has yet to surpass.

The high usage implied by the number of active wallets was interpreted by investors as “a bullish signal to keep investing in blockchain games,” DappRadar wrote.

It further noted that the second quarter this year saw venture capital investments of USD 2.5bn flowing into the sector, which it said maintained the pace set in the first quarter, and “already surpassed the annual milestone of [USD] 4 billion set in 2021.”

Pointing to a new USD 4.5bn crypto-focused fund by VC giant Andreesen Horowitz as a major source of future investments into the space, the report argued that, 

“At this pace, we are projected to have a volume of 12 billion invested by the end of the year.” 

Among the areas in the gaming sector that stood out the most were virtual world-related NFTs, which saw their trading volume rise by 97% since the last quarter. 

Meanwhile, the most popular game in the sector was Splinterlands, with a daily average of 283,729 unique active wallets during the quarter, according to DappRadar.

Another bright spot pointed to in the report was Alien Worlds, the second-highest-ranked