Web3 casinos amassed $5b in crypto from 4k wallets in 2023 alone, data shows

On-chain data shows that around 4,000 wallets will enrich web3 casinos and gambling sites with $5 billion worth of crypto in 2023.

Web3 casinos and gambling platforms appear to be making a fortune, as $5 billion worth of cryptocurrency was deposited into 4,000 Ethereum (ETH) wallets in 2023 alone, according to data from Chainalysis.

The New York-based blockchain forensics firm explained in an Aug. 5 blog post that high-frequency gamers are making a huge impact on web3 gaming businesses, conducting an average of $7,000 worth of cryptocurrency transactions.

Infographics of active web3 casino players | Source: Chainalysis

While the number of crypto whales interacting with Web3 casinos is relatively small, their financial contributions are immense. Around 500 whales, sending around $25,000 in crypto each on average, collectively transferred $320 million in 2023, showing a huge gap between the contributions of casual players and VIP clients.

Casino transactions mostly involve personal wallets

Chainalysis reports that the majority of transactions at web3 casinos involve personal wallets, with most players depositing and withdrawing funds into their accounts through these channels. The company also added that many are “sending and receiving funds from exchange accounts.” Specifically, deposits and withdrawals from personal wallets to web3 casinos account for 61% and 70%, respectively, while crypto exchanges account for 38% and 29%.

Chainalysis says many players don’t want to hide their traces on the chain, so businesses can analyze their behavior and companies can gain insight into “players’ assets, spending habits, and interactions on blockchain platforms.”

“With this information, businesses benefit from more accurate segmentation, personalized strategies, and a holistic view of off-platform activities that are crucial to engaging users.”

Chain analysis

Over the past four years, web3 casinos have seen steady growth in sign-ups, accumulating $78.7 billion in crypto. However, despite this rapid expansion, Chainalysis expressed concerns about potential risks, saying that some platforms “could also be a vector for money laundering.”

Leave a Reply

Your email address will not be published. Required fields are marked *