GameFi Market Capitalisation Surpasses $31 Billion

In the past week, GameFi tokens have experienced significant growth. At the time of writing, the market capitalisation of the segment stands at $31.5 billion, according to CoinGecko.

The popularity of Web3 games is even more evident in the 30-day metrics:

• The Gala token has increased by 184.5% over this period;
• Axie Infinity by 64.8%;
• The Sandbox by 59.5%.

According to Nansen analyst Edward Wilson, such high figures indicate a significant portion of investors are willing to take on increased risk.

“As the market begins to heat up, investors are seeking higher returns beyond major cryptocurrencies like Bitcoin and Ether,” he said in a comment to The Block.

As an example of the growing Web3 player base, Wilson mentioned the card game Parallel, which uses the Prime token.

“Parallel is highly regarded in the industry due to partnerships with some of the best teams in the crypto market, such as Coinbase and OpenSea, and it has been successful during the bear market,” the analyst added.

Representatives from the Bitget exchange also noted the increase in trading volumes of GameFi tokens. From March 9 to 10, this figure on the platform rose by 126%. The number of traders increased by 48% over the week.

Bitget Research’s chief analyst Ryan Lee attributes the growing interest in the segment to the upcoming Game Developers Conference GDC, which will take place from March 18 to 22 in Los Angeles.

He believes that in 2024, GameFi will flourish alongside the AI sector.

“Leading Web3 games and high-performance gaming blockchains will spearhead the next wave in the GameFi industry,” Lee stated in a comment to ForkLog. 

He added that anticipated updates to gaming platforms Ronin and ImmutableX will attract a broad user base to the global market and drive token speculation growth.

Back in November 2023, CoinGecko experts calculated that since the emergence of the GameFi segment, about 75% of projects in this direction have failed.