Blockchain Gaming
The crypto markets have experienced a tumultuous 2022 to date. Web3 gaming has not felt the same amount of pressure. As an industry, blockchain gaming has raised $1.4 billion in funding since May and nearly $4.9 billion since the beginning of the year. While many token-based projects are floundering, the gaming space is seeing “green shoots.”
In an interview with TechCrunch, CEO of Animoca Brands Robby Yung outlined some of the decouplings that have occurred between the cryptocurrency and blockchain gaming markets.
“People have a tendency to couple crypto markets with blockchain games and content, but actually it’s only as appropriate as linking tech stocks on Nasdaq with the businesses of tech companies. There’s a certain correlation, but it’s tenuous.”
On a relative basis, Web3 gaming has been a “safe haven” in terms of crypto assets.
In May, users of blockchain-based games continued their activity as metrics that track usage remained in line with previous data. According to DappRadar, the month-to-month change in daily unique active wallets interacting with blockchain games was down only 5% from the previous month.
In addition to the current strength of blockchain gaming, future prospects continue to look promising. The play-to-earn NFT-based gaming industry is expected to reach $2.8 billion by 2028, according to market research firm Absolute Reports.
E-Commerce:
While 2020 and 2021 were a boon for e-commerce adoption by consumers, the industry has seen steep dropoffs in recent months.
Shoppers are currently eager to head back to stores, while the highest inflation print in four decades is stoking fears that consumers are pulling back their spending on some items to still afford the essentials.
That combination spells bad news for many e-commerce-focused retailers, and their stocks tumbled amid a broader market selloff Thursday as investors feared their growth could be screeching to a halt, and that profits could be harder to come by.
Even e-commerce giants such as Shopify and Amazon have struggled in the public markets.
Shopify announced that it would be laying off 10% of its workforce. Meanwhile, Amazon has logged its worst revenue growth since 2001 and concurrently issued a tepid future forecast. The company has repeatedly cited macroeconomic conditions and the Ukraine invasion for the slowdown, but a broader decrease in overall e-commerce expenditure is being observed across markets.
In a note to clients from Gordon Haskett, analyst Chuck Grom wrote that there is evidence that the current consumer reaction to increased prices are only the beginning of a broader pushback across all channels of commerce.
Furthermore, a recently released Mastercard SpendingPulse report showed a year-over-year retail sales increase of 7.2% in April. But that same study saw that in-store sales increased by 10% while e-commerce declined by nearly 2%.
Want to learn more? Check out the full blockchain gaming report here and the e-commerce report here.
ICYMI: Last week, we published a new Heat Check on the growth of plant-based protein alternatives. You can access that report and our entire catalog of research at Pro HQ.
