Latest Trends in NFTs and Web3 Gaming

We've just wrapped up our H1 2024 analysis, and there’s plenty to unpack. From the rise of gaming wallets to the blockchain platforms that are leading charge, our latest report covers it all. In this article, We will share some of the key highlights and insights from our research. Download the full report at the end of the article.

NFT Market Overview

What's the current state of NFT mints? The NFT minting landscape has seen significant fluctuations from 2022 to 2024. The peak of activity occurred in January 2023, with approximately 86,200 minted collections, followed by another high in December 2022 with 76,000 collections. However, in 2024, the market has stabilized, reflecting a more mature and sustainable pace of NFT creation.

Has wash trading been curbed? Wash trading, a major concern since 2021, has gradually declined as the NFT market stabilizes. Our analysis of Ethereum’s trading data shows three major peaks in wash trading—August 2021, January 2022, and May 2022—but recent trends indicate a significant reduction in these activities, pointing to a healthier market.

Which platform dominates trading? Blur has emerged as a dominant player in the NFT marketplace, maintaining over 50% of the daily trading volume over the past six months. Its rapid rise and consistent market share can be attributed to a user-friendly interface and attractive incentive structures that resonate with traders.

Who's generating the most royalties? In terms of royalty income, OpenSea stands out, having generated approximately $2.28 billion in total royalty revenue, capturing an overwhelming 95.96% of the market. This dominance underscores OpenSea's continued leadership in the space, particularly in royalty-generating trades.

Price Distribution Insights

Which price range sees the highest volume? The 0.1-0.2 ETH range sees the highest transaction volume, with a gradual decline as prices increase. This suggests that the market is most active at lower price points, though higher-value transactions still play a significant role.

Where do we see significant volume spikes? Interestingly, the 1-2 ETH price range experiences a noticeable spike in transaction volume, surpassing lower price ranges and reflecting more complex market dynamics at play.

Which blockchain boasts the longest holding time? Ethereum leads in terms of average NFT holding time, with users retaining their NFTs for approximately 278 months. This long holding period highlights the strong confidence and long-term investment strategies of Ethereum-based NFT holders.

Web3 Gaming Landscape

What happened to monthly active users? There has been a decline in monthly active users across many Web3 gaming platforms, signaling a reduction in player engagement. This trend is important for developers and investors to monitor as it reflects the current state of player activity in the space.

How many addresses are truly active gamers? Only about 10-15% of addresses in Web3 gaming are truly active, regularly participating in gameplay or related activities. This indicates that while there is a large number of registered users, the core active community remains relatively small.

Which blockchain leads in gaming contracts? Ethereum continues to dominate in gaming contracts, holding a significant share of the market. This leadership is supported by its established ecosystem and broad developer base.

ERC20 vs ERC721: What's the ratio? The prevalence of ERC20 (fungible tokens) over ERC721 (non-fungible tokens) is approximately 3:1, indicating that fungible tokens still dominate the Web3 gaming space, although NFTs are carving out a significant niche.

Top Performers

Which games have the highest active wallets? Games like Axie Infinity and Splinterlands continue to lead with the highest number of active wallets, showing strong user engagement and sustained interest in these platforms.

Who's leading in asset minting? Polygon has taken the lead in asset minting, particularly in the NFT space, thanks to its low transaction fees and expanding developer ecosystem. This positions Polygon as a key player in the future of digital asset creation.

How are Web2 brands performing in the NFT space? Web2 brands are increasingly venturing into the NFT space, with some successfully integrating NFTs into their marketing strategies. However, aligning with the Web3 ethos remains a challenge for many, signaling that there’s still a learning curve for traditional companies entering this new frontier.

Predictions for H2 2024

Will early Bitcoin assets gain value? Early Bitcoin assets are expected to rise in value as Bitcoin continues to solidify its role as a store of value and a hedge against inflation. With increasing institutional interest, these assets could become even more valuable.

How will NFTs transform gaming platforms? NFTs are set to revolutionize gaming platforms by enabling true ownership of in-game assets, fostering cross-game interoperability, and introducing new revenue models. This integration will likely reshape the gaming industry in the coming years.

What's the future of L2 NFTs? Layer 2 NFTs are poised for growth due to their lower transaction costs and faster processing times, making them more accessible to the masses. This could drive broader adoption as users seek more efficient and cost-effective options.

Is P2E evolving? The Play-to-Earn (P2E) model is evolving towards more sustainable approaches where player engagement and skill are prioritized over purely financial incentives. This shift aims to ensure long-term viability and better player retention, moving away from models that solely focus on earning.

Final Thoughts

Our H1 2024 report provides a deep dive into these trends and more, offering comprehensive analysis and data-backed predictions. As the NFT and Web3 gaming landscapes continue to evolve, staying informed will be key to navigating this rapidly changing environment.

Download your copy for an in-depth look at where the market is headed!

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