Weakness in NFT’s games over to Blockchain Gaming: Report

Monthly returning buyers of Ethereum-based NFTs jumped back to 45,000 in June after seeing less than 35,000 in May, according to blockchain analytics service Nansen’s Q2 NFT report. The company analyzed six indices of NFTs denominated in ETH, and found that the gaming index was hit the most, 59.6% down from the beginning of the year.

Meanwhile, the blockchain gaming giant Axie Infinity experienced a clear decline in the user base by 83% in Q2, while blockchain games’ total volume of Unique Active Wallets (UAW) only fell by 7% in the same period despite the noticeable weakness in the broader market.

Capital floods for Blue-Chip projects

Nansen’s report tracked six major marketplaces hosting Ethereum-based NFTs, noting that the weekly trading volume only reached 600,000 ETH in June. In comparison, the month before registered around 1.3 million.

During a turbulent period, the trading volume of such NFTs was back to blue-chip collections as investors tend to take a cautious approach, said Louisa Choe, a research analyst at Nansen.

“ETH inflows and outflows are concentrated in Blue Chips or NFTs with large companies in the NFT market. Such a phenomenon suggests the risk-off attitude among NFT market participants.”

The well-maintained interest in reputable projects shows where CryptoPunk # 4464 was sold for 2,500 ETH on Tuesday, equivalent to over $ 2.6 million at the time of sale. In terms of ETH rates, this NFT ranks as the fourth largest CryptoPunks NFT sale of all time.

However, the report also indicated that limited liquidity in the NFT market suggests that the slow recovery in June may not be sustainable. This is partly demonstrated in the drastically reduced interest in the game NFTs, which act as virtual assets for various blockchain games.

Blockchain games remain resilient

The broader bearishness of cryptocurrencies, as well as the fall in NFT activity, has caused an expanded impact on game NFT sales, according to DappRadar’s Q2 Game Report shared with Kryptopotet.

“Organic sales of gaming NFTs fell 29% compared to the previous quarter, while the price of in-game assets was also negatively impacted due to the decline in value of many game-related cryptocurrency tokens. “

Nevertheless, the report found the sector in strong resilience compared to the Defi and NFT activities on the chain, which fell 17% and 24% Q / Q, respectively. To put things in perspective – gaming Dapps accounted for 52% of all blockchain activity at the end of the second quarter.

Among all the top blockchain games, Axie Infinity witnessed a collapse of the user base by 83% in the quarter due to the utilization of over 600 million dollars which led to the crumbled credibility.

Splinterlands remained the most-played blockchain, with 283,729 UAWs at the end of the quarter, when Alien Worlds finished second, if UAW fell just 4% in Q2 compared to the previous three-month period.

In addition, games based on blockchains other than Ethereum experienced rapid growth despite unfavorable market conditions. Sunflower Lands on Polygon increased its UAW by 10,000% to over 11,000 users, and Gameta at Solana ended the quarter with more than 30,000 UAW, DappRadar noted.