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State of Web3 Gaming in Q3 2024

Nov. 27, 2024. 6 mins. read. 2 Interactions

Web3 gaming surges ahead in 2024, with Telegram shaking up launches and traditional platforms cautiously stepping in. Is this the dawn of a blockchain gaming revolution?

Credit: Tesfu Assefa

Introduction

The crypto gaming industry in 2024 is evolving into a new form, in a transformation far from complete. That’s the message of a comprehensive new Q3 2024 report on GameFi

Game7’s report shows Web3 gaming is reshaping the global gaming landscape. Telegram is emerging as a launchpad for new titles, and Web2 gaming powerhouses are cautiously testing these waters. This shift puts pressures on traditional mobile platforms to adapt, while they grapple with restrictive policies and regulatory uncertainty. 

Here’s how the Web3 gaming ecosystem is growing in 2024, and how it is segueing into a potentially bumper 2025.

Web3 Gaming Ecosystem

The total gaming market cap peaked in early Q2 this year at around $40 billion, and has since halved, as hotter narratives like Bitcoin, AI and meme coins ate its share. 

This doesn’t mean Game Over for the crypto gaming sector – the report’s data shows positive signs. 

Blockchain ecosystems like Immutable and Arbitrum are thriving, driving rapid growth with innovative offerings, and attracting developers from rival platforms. While game announcements dipped 36% from 2023, fewer projects abandoned development, showing a maturing ecosystem. 

Indie creators dominated: they drove over 90% of releases, favoring the RPG, casual, and action genres. Meanwhile, platforms like Epic Games Store embraced Web3, hinting at gaming’s bold new chapter amid ongoing challenges with integration and adoption.

Geographically, the Asia-Pacific region leads Web3 game development, accounting for nearly 40% of new titles, followed by North America at 35%. The USA contributes 27% of teams, with South Korea and Singapore following. 

Genre trends remained stable: RPGs, casual, and action games top the charts as developers refine Web3 integration within the old familiars before any creative daring.

Telegram Reshapes Web3 Gaming

In addition to the rise of crypto trading bots on Telegram, the messaging app emerged as a surprising force in Web3 gaming in 2024. Telegram has carved a niche as a preferred platform for launching Web3 games, with 21% of new titles choosing it as their home. Distribution trends for new Web3 games largely followed patterns from 2023, but Telegram’s rise is a new turning point, as this graph shows –

Rise of Web3 Gaming on Telegram (Credit: Game7 Research)

What makes Telegram so appealing? Simplicity. Its massive user base (950 million active monthly users) and frictionless in-app experience sidestep the challenges of traditional app stores like Apple’s and Google’s. 

To illustrate the discontent game developers have with Big Tech’s app stores, Epic Games – the parent company of Fortnite – sued Google and Samsung for blocking competition. For developers like these, Telegram answers the call for a way to distribute games without high store fees or restrictive NFT policies. 

However, Telegram’s rise faces hurdles. Discoverability on the platform is still a challenge, and concerns linger about user engagement metrics and the lack of robust Web3 development tools. Telegram has also been in the crosshairs of authorities; its founder Pavel Durov was arrested in France over encryption issues. This pushed Telegram to update its rules.  

Despite this, many game publishers are crafting Telegram strategies – not for full-fledged titles, but as a complementary user-acquisition stream.

Telegram’s success could also disrupt the status quo in mobile distribution. Its integration of blockchain gaming within a messaging app shows how traditional channels might adapt, or risk being left behind.

Credit: Tesfu Assefa

Traditional Gaming Giants Enter Web3

Traditional gaming platforms are beginning to tiptoe into Web3 territory, blending innovation with caution. The Epic Games Store (EGS) has taken a leading role, adding 85 new Web3 titles in the past year. While it lacks dedicated Web3 tools, its open-minded content policies have made it a trusted partner for blockchain projects.

Quarterly Web3 Game Listings on Epic Games Store (Credit: Game7 Research)

EGS is also expanding its global presence, launching on Android and EU iOS in 2024. Though its mobile stores don’t yet welcome third-party Web3 games, its pro-Web3 stance on PC keeps it a platform to watch. Meanwhile, Steam holds firm on its controversial Web3 restrictions. Still, savvy developers are finding workarounds by releasing modified versions of their games to leverage Steam’s massive market reach.

Consoles are also testing the Web3 waters. Off the Grid by Gunzilla Games made waves as the first Web3 game to debut on consoles. By separating blockchain features from core gameplay, it hints at a future where platforms like Microsoft and Sony may cautiously embrace this new frontier. As policies evolve, Web3 teams could gain access to the vast console audience, reshaping gaming as we know it.

Key Blockchain Stats

The blockchain gaming ecosystem grew rapidly in 2024, with 105 blockchain networks were announced that can support gaming – a 20% increase from the previous year. Of these, 64% were designed specifically for gaming, reflecting the rising developer interest in tailored blockchain solutions.

Gaming-Specific Blockchains Are on the Rise (Credit: Game7 Research)

A major shift is happening toward Layer-2 and Layer-3 networks. L3 solutions, which only gained traction in 2023, accounted for 43% of new gaming blockchains this year, thanks to their customizable environments. L2s followed closely, making up 34% of the new entries. Though Layer-1 (L1) networks still host 66% of active games, most 2024 launches embraced L2 or L3 solutions for better scalability and gaming-specific features.

Ethereum Virtual Machine (EVM) continues to dominate as the go-to smart contract environment. Despite rising competition from ecosystems like Solana and Sui, developers are hesitant to leave the EVM due to its mature tools and lower switching costs. For now, EVM remains the backbone of blockchain gaming innovation.

Funding and Tokens

Web3 gaming funding in 2024 held steady, matching 2023 levels. Investors focused on content over infrastructure. Here again the same genres account for most of the market share: action, RPG, and casual games. Gaming chains and engagement platforms also attracted attention, but cautious optimism prevailed as investors awaited the next Axie Infinity moment.

Meanwhile, gaming token launches skyrocketed, up 200% from the previous year. By Q3, 74% of these launches were tied to game titles, reflecting a clear shift toward monetizing gameplay. The industry remains conservative, but the surge in tokens shows a drive for in-game economies and blockchain-powered experiences.

As Web3 wars intensify, gaming Dapps lost market value in the past year. The market cap of top gaming coins reached $22.5 billion in November 2024.

Regulatory Landscape

Web3 gaming projects face a complex regulatory landscape in the USA, dominated by the SEC and CFTC. With the election of crypto-friendly Donald Trump these regulations might finally be clarified.

Shifts in the U.S. political climate suggest the possibility of a more collaborative regulatory approach. Many projects are adapting by designing tokens with utility-focused mechanics, aligning more closely with traditional gaming models. While some delays in token launches persist, developers are finding ways to integrate blockchain elements into gameplay, balancing innovation with compliance.

Conclusion

Web3 gaming in 2024 is evolving, driven by innovation, indie creativity, and platforms like Telegram. Developers are refining blockchain integration while navigating regulatory and technical hurdles. Traditional platforms are slowly adapting, hinting at a broader shift to Web3. Challenges remain, but the foundation for growth is strong.

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About the Writer

Werner

75.71652 MPXR

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