2022 Review of Web3 Gaming

Crypto gaming, one of the most popular crypto sectors, did not fare as well in 2022 as it did in 2021. In 2022, crypto gaming-related tokens and NFTs experienced a sharp price decline of over 90%. Nonetheless, the Web3 gaming sector still experienced myriad developments —including the launch of ImmutableX as the global liquidity orderbook for gaming assets, Yuga labs’ launch of its metaverse Otherdeeds, and games like Blankos Block Party and Grit making their first appearances on Epic Games’ stores.

In 2017, CryptoKitties generated a lot of buzz by allowing players to buy and sell digital cats using blockchain technology. This was followed by the release of Axie Infinity in 2021, which created a new play-to-earn (P2E) trend in gaming. The next big thing in crypto gaming will be less about earning and more about revolutionizing the gaming experience. Although this is an obvious trend, it is still challenging when we consider Web3 games competing in a crowded market with existing Web2 games (i.e., traditional video games).

The next gaming evolution that offers novel experiences is likely to be initiated by on-chain gaming. One of the expectations is that on-chain gaming will spawn a strong decentralized identity beyond the typical DeFi activities or asset holdings —for example, one’s voting will be weighted according to one’s performance within the game and lead to token-less governance within the game.