Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
  • CASINO
Crypto Flexs
Home»ETHEREUM NEWS»What’s behind the nearly $1 billion surge in blockchain gaming investments?
ETHEREUM NEWS

What’s behind the nearly $1 billion surge in blockchain gaming investments?

By Crypto FlexsJune 2, 20245 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
What’s behind the nearly  billion surge in blockchain gaming investments?
Share
Facebook Twitter LinkedIn Pinterest Email

The following is a guest post by Yaniv Baruch, COO of Playnance.

The first quarter of 2024 has reinvigorated investor sentiment in the cryptocurrency market. With the conclusion of a landmark lawsuit against the SEC, US investors can finally take advantage of Bitcoin ETFs in-situ. This opened Web3’s doors to large institutional investors. Weekly net cash inflows into US-based ETFs have repeatedly exceeded initial forecasts, sparking a bullish rally against Bitcoin’s all-time high price.

Despite optimism in the broader market, investment in Web3 games remained cautious, with $288 million committed in the first quarter. Nonetheless, April brought a windfall for the industry.This is $988 million, the highest monthly investment since January 2021.

Soaring Investment: Data

The root causes of this year’s surge in investment appear to be similar to those in early 2021. Just three years ago, the GameFi industry was expecting explosive growth due to the emergence of new technologies such as NFT. From 2020 to 2021, the total market capitalization of NFTs has surged 29 times, while the total value locked in DeFi protocols has reached historic highs.

Likewise, the sharp increase in committed investments in April 2024 was driven by Ethereum’s recent implementation of new account abstraction technology and the overall increase in layer 3 blockchain solutions. Corporate activity is unusual. a16z is raising a $600 million gaming fund, Bitcraft Ventures is raising its third GameFi fund at $275 million, and Ubisoft Studios is increasingly interested in blockchain collaborations and joint ventures. All indications are that Web3 Games is off to a strong head start.

This is backed up by very strong built-in user engagement metrics. The average number of unique active wallets for gaming dApps is nearly 3 million per day, a record number. Data from DappRadar shows that every third person who logged into a dApp in April did so primarily for gaming purposes. This suggests strong interest in fair play, play-to-earn and play-to-airdrop business models. Meanwhile, the number of active blockchain gamers will increase by 83% in 2024, reaching 90.3 million users.

Growth Driver Explained: Account Abstraction and Layer 3

Why do market participants and venture investors equate the importance of account abstraction and Layer 3 with the groundbreaking impact of NFTs and DeFi? In 2021, blockchain games have tried to find unique ways to differentiate themselves from previous Web2 games. This search for the value proposition presented in NFTs provides users with true data sovereignty and ownership claims over digital assets and DeFi, monetizing numerous native GameFi tokens.

What will hinder the future development of Web3 games in 2024 will not be the novelty of the technology or the lack of sustainable financial rewards. Users have become familiar with the world of Play to Earn GameFi and Web3. Ironically, the taste for new technology has become the opposite. In other words, it’s annoying because it stands out. What VCs are looking for is not the technology or the in-app economic layer. Rather, they see. Account abstraction and layer 3 solutions as technology catalysts for great GameFi UX.

On paper, account abstraction replaces non-custodial wallets with programmable smart contracts. In fact, this gives dApp developers unprecedented flexibility at scale. For example, AA removes seed phrase dependence and introduces random verification, allowing gamers to create trustworthy decentralized accounts using familiar options like email or Google accounts.

Second, it maintains the integrity of the in-game experience without compromising security, eliminating the need to authorize every in-game purchase individually or from an external wallet. Finally, account abstraction introduces sponsored transactions, eliminating the most notorious gateway to dApp UX: gas fees.

Even when network activity is low and gas fees are negligible, the cognitive bias toward unpredictable and unexpected additional costs can prevent users from engaging more with dApps. Connecting a fiat card to seamlessly pay for gas fees or using developer funds to cover associated commissions directly is an important step towards better UX and better user retention.

Likewise, Ethereum’s vertical scaling of layer 3 solutions (also known as application-specific blockchains) can be used to achieve zero-gas functionality by reducing transaction execution times and dramatically reducing gas fees. Layer 3 solutions combined with account abstraction deliver a completely new experience at GameFi. That said, it’s truly free-to-play, smooth, and indistinguishable from the Web2 game process UX.

Chekhov’s Gun: The Future of GameFi

Easy access to new technologies With significant financial backing breathing new life into the sector, it’s only a matter of time before these fundamentals become the next major wave of GameFi products.

If this is realized, blockchain games will become the forefront of a new development paradigm that puts user experience first. Technological advancements such as Layer-3 solutions and account abstraction are coming into the early tech stack of most GameFi products, and Web3 is taking it in a new direction. A step toward widespread adoption. The blockchain of tomorrow will present itself as an alternative to Web2 and a much better option.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Bitcoin News Today: Ether (ETH) is 5K $ 5K and BTC Eyes is recorded as Powell Sparks Rally. DAT transaction risk: Be careful with asset managers

August 23, 2025

$ 500m liquidation Rock Ethereum and Bitcoin: Do the collisions fuel to the whale accumulation?

August 19, 2025

Ether Leeum can increase to $ 15 million as the institution accumulates: Study

August 15, 2025
Add A Comment

Comments are closed.

Recent Posts

Distributed financial introduction

August 24, 2025

SANTIMENT says that Fed Rate Talk Signals Signals problems arise.

August 24, 2025

Ethereum Breaks $4,750 Support As Pepeto Crosses $6,287,248 In Presale Funding

August 23, 2025

Builders, Investors, And Developers Meet Again To Shape The Web Space

August 23, 2025

Bitcoin News Today: Ether (ETH) is 5K $ 5K and BTC Eyes is recorded as Powell Sparks Rally. DAT transaction risk: Be careful with asset managers

August 23, 2025

Bitcoin analysts bet on $ 200K after hints of Fed.

August 23, 2025

Ether ETF is a comeback of $ 280 million, with bitcoin leaked stripes hit on the 5th.

August 22, 2025

Will Cardano (ADA) step back and push the bear back low?

August 22, 2025

Partner relationship with SBI HOLDINGS to distribute RLUSD Stablecoin

August 22, 2025

MetaWin Announces “MetaWin Create” – Free AI Tools For All MetaWinners NFT Holders

August 22, 2025

A new era of encryption? A Doj official says that a developer with a good intention is not a goal.

August 22, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Distributed financial introduction

August 24, 2025

SANTIMENT says that Fed Rate Talk Signals Signals problems arise.

August 24, 2025

Ethereum Breaks $4,750 Support As Pepeto Crosses $6,287,248 In Presale Funding

August 23, 2025
Most Popular

Exploring the benefits of tokenized funds in modern asset management

November 24, 2024

Ethereum turns 5 years old 🎂 | Ethereum Foundation Blog

February 1, 2024

What is Turbo (TURBO)? – Bitfinex Blog

August 2, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.