Yaniv, the COO for Playnance has written a guest blog.
Investors’ confidence in 2024 will be boosted by the first quarter. US investors can now access spot Bitcoin ETFs, after a landmark case against the SEC was settled. The Web3 ETF opened up to large institutional investors. Weekly net cash flows to US-based ETFs have consistently outperformed initial forecasts. This has triggered a bull run to an all-time-high price for Bitcoin. Bitcoin.
Although the overall market is optimistic, Web3 Gaming investments remain cautious. $288m was invested in the first-quarter. Nevertheless, April brought the industry a windfall—The highest investment monthly since January 2020 is $988,000,000.
Investment Surge: Data
This year’s spike in investment seems to have similar causes to early 2021. Three years ago, there was a similar spike in investment. GameFi The industry anticipated a period of explosive growth, made possible by new technologies such as NFTs. In the period 2020-2021, NFTs’ total market value increased by 29 fold, and DeFi protocols saw their total value reach historic highs.
The steep rise in investment commitments in April 2024 will also be driven by Ethereum Implementing its new technology Account Abstraction, and in general the growth of Layer 3 Blockchain solutions. Corporate activity has been unusual: Bitcraft Ventures’ third GameFi Fund of $275,000,000, a16z raising $600,000,000 in gaming funds, Ubisoft Studios becoming more interested in joint ventures and blockchain collaboration. Web3 Gaming is preparing for an explosive start.
This is backed up by the incredibly strong metrics of user engagement. The average unique active wallets for gaming dApps almost reached 3 million daily — a record-setting number. Data from DappRadarIn April, the third of all people who logged into dApps did so for gaming-related purposes. This shows a high level of interest in play-to win, play to airdrop, and fair gaming business models. In 2024 the number of blockchain users will grow by 83%, to 90.3 millions.
Account Abstraction, Layer 3 and Growth Drivers explained
Why are market participants and investors attributing the importance of Account Abstraction, Layer 3, and the revolutionary impact of NFTs to NFTs? Blockchain gaming was looking for a way to stand out from Web2 in 2021. The NFTs were the result of this search, which offered users the true sovereignty over their data and the ownership rights for digital assets. DeFi was then used to monetize a multitude of GameFi native tokens.
The future of Web3 gaming will not be hindered by the lack of a sustainable financial reward or the novelty of technology in 2024. The world of Web3 and GameFi have been embraced by users who are used to the play-to earn model. Quite ironically, the taste for new technology has become the opposite—irritation with its conspicuousness. VCs don’t bet on technology or the layer of in-app economies. They see something else. GameFi UX can be improved by using Layer-3 technology and Account Abstraction.
Account Abstraction is a paper-based solution that replaces wallets not under the custodian’s control with smart contracts. It offers dApps a new level of flexibility. By eliminating seed phrase dependence and introducing random verification, the AA allows users to create decentralized trusted accounts using familiar methods like Google or email.
Second, Account Abstraction maintains integrity in the game experience, without compromising the security. No longer is it necessary to approve in-game purchases individually or from external wallets. Finally, Account Abstraction introduces sponsored transactions, removing the most notorious chokepoint in the dApps UX — gas fees.
The cognitive bias towards unpredictable costs and additional charges prevents users to engage with dApps. The ability to link fiat card to pay gas fees seamlessly or to use developers funds to cover the associated commissions is an important step towards a better UX.
In the same way, Ethereum vertical scaling (also known by the name application-specific Blockchains) in Layer-3 Solutions allows for the reduction of transaction execution times and the radically lowering the gas fees so as to achieve zero-gas functionalities. Combined with Account Abstraction, Layer-3 solutions open the door for a completely novel experience in GameFi—truly free-to-play, seamless, and indistinguishable from the Web2 gaming process UX-wise.
GameFi: the future of investment?
New technologies are readily available. You can also find out more about the following: financial These fundamentals will soon be the driving force behind the newfound vitality of the sector. next GameFi releases a major new product wave.
This will lead to a paradigm shift in gaming development that puts the user first. GameFi is integrating Layer-3 technology and Account Abstraction into its initial stack of technologies. Web3 will also be heading towards a new direction. Adoption stage. Blockchain will be positioned as a better alternative than Web2 in the future.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cryptoslate.com