GameFi Investments Surge In 2024 Despite Market Cap Decline

Venture capital interest in GameFi is on the rise in 2024, with investments increasing steadily. In the first four months of the year, both the number of funded projects and total raised funds have shown significant growth. 

The GameFi sector now boasts 3,763 protocols, with BNBChain, Ethereum, and Polygon leading in the number of active games. BNBChain is at the forefront, followed by Klaytn, Sui, Flow, and Optimism, where all games are currently active.

The number of active GameFi users has surged month-on-month, with an increase of over 41 million users by the end of April 2024 compared to the beginning of the year. Ronin, despite having fewer games, has attracted the most gamers, with 972,000 users in just the first four months of the year.

The GameFi market cap, however, has seen a notable decline, decreasing by 44% since January 1, 2024, and down 66.1% from the year’s all-time high. Despite this, some GameFi tokens are experiencing gains. Yield Guild Games ($YGG) is up 105%, Echelon Prime ($PRIME) by 97%, and Gala Games ($GALA) has increased by 34%.

The New Trend “Tap To Earn” Takes Over The Space

In terms of game genres, PVP and action games are the most popular, but mining games are gaining traction with millions of users. A new trend, “Tap to Earn,” is emerging, with Notcoin ($NOT) leading the way by engaging millions through a simple tap-to-earn mining mechanism. 

Similar games like Capybara on Sui and Tapswap on Solana are also gaining popularity, promising excitement and earning potential. Other notable mining games include Mine $HOT on Near Wallet and $OCEAN on Wave Wallet.

Another trend in the GameFi sector is the integration of mini-apps with Telegram. These mini-apps can leverage Telegram’s large user base, making it easier for projects to reach customers.

While the overall GameFi market cap has declined, the increasing diversity of game genres and a growing number of active users indicate that the GameFi market still holds significant opportunities for investors and gamers alike.

Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.