3 Metrics to Analyze GameFi Projects

Whereas the recognition of GameFi continues to develop, there are nonetheless comparatively few genuinely enjoyable video games among the many 1,322 in whole.

In lots of instances, it’s not sufficient to evaluate the potential of a undertaking simply by screenshots or walkthroughs, as a result of the playability of a recreation is a subjective level.  

As an alternative, buyers and analysts ought to transcend the floor and think about the info behind a recreation. Listed below are three key metrics to have a look at when evaluating the well being and potential of a GameFi undertaking. 

Key Indicators for the GameFi Venture

  • Variety of Customers on the Protocol

The variety of customers is the variety of gamers within the GameFi program and is essential to the wholesome operation of the GameFi ecosystem. It additionally displays the recognition of the sport undertaking amongst customers.

In keeping with Footprint Analytics knowledge, the variety of GameFi customers has been on the rise since April 2021 and has reached a steadiness. That is extremely correlated with the speedy development of many initiatives and the continued improvement of the GameFi market.

Footprint Analytics - GameFi User Number
Footprint Analytics – GameFi Consumer Quantity

The variety of customers on the chain exhibits that the general public chains with extra customers within the final 3 months are primarily WAX, Hive, Polygon, and BSC.

Footprint Analytics - Number of Users Per Chains
Footprint Analytics – Variety of Customers Per Chains

Amongst them, Splinterlands, just like the Hive chain, has about 300,000 every day customers and accounts for greater than 98% of the customers on the Hive chain. Splinterlands is among the extra in style recreation initiatives not too long ago, with its native token SPS priced at lower than $0.1, decreasing the edge for gamers to take part within the recreation by its low issuance value.

There may be additionally the WAX, which has been capable of keep a excessive variety of customers, which exhibits that the video games within the WAX ecosystem are extra sticky in comparison with different blockchains. And gamers can play Alien Worlds on its chain without cost and earn $10 to $15 for just a few hours of play.

Examine this to Axie Infinity on the Ronin chain, the place the typical variety of every day customers has dropped from 120,000 to about 20,000 during the last 6 months. The distinction on this quantity is that many of the recreation customers’ actions are carried out off-chain, and solely transactions involving recreation props are settled on-chain. Due to this fact, the excessive gasoline charges for on-chain and inefficient on-chain transactions are the explanations for the lower in its person base.

Throughout completely different profitable initiatives, 3 issues stand out:

  • Have to be relevant to all crypto-users and have a low threshold, along with having recreation varieties that attraction to customers.
  • The Play to Earn mannequin can be an necessary indicator of excessive person recognition.
  • To have low gasoline charges and environment friendly capabilities.

If the undertaking doesn’t deal with the expansion of the variety of customers, even when the content material richness of the sport undertaking is steadily growing, with out customers it is going to turn into nugatory.

As GameFi calls for extra capabilities from the community than conventional gaming, protocols supporting these initiatives want cheaper gasoline charges and quick transactions. Because of this, many blockchains are deploying devoted chains particularly for gaming purposes and bettering capabilities to facilitate extra undertaking utilization and person transactions.

In keeping with Footprint Analytics, the variety of transactions per capita on the WAX chain has been comparatively steady since April 2021, at round 35 to 50 transactions per day, and WAX depends on initiatives akin to Farmers World and Alien Worlds, which account for greater than half of the transactions on the WAX.

When it comes to capabilities, WAX not solely helps high-frequency transactions however may course of as much as 8,000 transactions per second, which is quick.

Notably, the typical variety of transactions on Avalanche has been growing since January, reaching as excessive as 50 transactions on March 16. Initially occupying a significant place within the DeFi subject, with the recognition of GameFi, Avalanche steadily shifted to GameFi. For instance, Crabada is a recreation the place gamers can discover the dominion of Crabada whereas incomes revenue by mining, looting, breeding, fight, exploration, and crafting. It accounts for almost all of transactions.

Avalanche is an EVM-compatible L1 chain that focuses on pace and low transaction prices, reaching transaction throughput of over 4500 TPS and transaction termination occasions of lower than 2 seconds. It goals to resolve the scalability issues confronted by Ethereum.

Footprint Analytics - Transaction Per User Trended by Chain
Footprint Analytics – Transaction Per Consumer Trended by Chain

As you may see from the info, different blockchains akin to Close to and Moonriver are principally under 30 transactions per capita.

  • Transaction Quantity Per Capita

Transaction quantity per capita refers back to the common quantity of funds transferred per person. It’s a essential metric to investigate GameFi initiatives as a result of it displays the extent of person engagement and the soundness of the product and tokenomics design. As an investor, it is best to have a look at the continued stability of a program’s per capita transaction quantity tendencies, particularly searching for sustainable development in person knowledge and a rise in agreed income for gaming-based applications. 

One of many extra notable declines is OKExChain, which went from a excessive of $20,487 per capita in Might 2021 to nearly no quantity after October.

The event of OKExChain chain video games is comparatively sluggish, and the recognition of the initiatives underneath planning is comparatively low.

Footprint Analytics - Volume Per User Trended by Chain
Footprint Analytics – Quantity Per Consumer Trended by Chain

As of February, the Concord, Ronin, and Ethereum blockchains are presently the principle battlegrounds for GameFi’s per capita transaction quantity, with many of the explosive chain excursions on these chains starting from $800 to $4,000 per capita.

To guage whether or not a GameFi undertaking has potential, one ought to have a look at which protocol mannequin it makes use of. If it makes use of a protocol mannequin just like the one on OKExChain, it’s much less prone to succeed as a result of its chain ecosystem is sluggish to develop and no additional plans are in place; if it makes use of a protocol mannequin on Hive or WAX, it has extra potential as a result of it focuses on person expertise and sustaining person development charge.


The GameFi trade is in an early, extremely risky stage—making it simple to lose your entire cash should you again the improper horse. Due to this fact, it’s essential to have a look at underlying knowledge when analyzing initiatives.

Date & Creator: March 26 2022, Vincy

Information Supply: Footprint Analytics – GameFi Data by Chain

This piece is contributed by the Footprint Analytics neighborhood.

The Footprint Neighborhood is a spot the place knowledge and crypto fanatics worldwide assist one another perceive and acquire insights about Web3, the metaverse, DeFi, GameFi, or some other space of the fledgling world of blockchain. Right here you’ll discover energetic, various voices supporting one another and driving the neighborhood ahead.

What’s Footprint Analytics?

Footprint Analytics is an all-in-one evaluation platform to visualise blockchain knowledge and uncover insights. It cleans and integrates on-chain knowledge so customers of any expertise stage can shortly begin researching tokens, initiatives, and protocols. With over a thousand dashboard templates plus a drag-and-drop interface, anybody can construct their very own custom-made charts in minutes. Uncover blockchain knowledge and make investments smarter with Footprint.

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