Web3 gaming mainstream adoption will happen gradually, then suddenly

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The iGaming industry is witnessing impressive growth, with global market estimates set to reach $127 billion by 2027. The driving force behind this trend is web3 games, which deliver enhanced gaming experiences through features such as in-game asset ownership, community-driven development, and increased transparency. .

Unlike mobile games, which can be expensive and require multiple in-app purchases to unlock a viable gaming experience, web3 allows users to monetize their spending and gain a sense of ownership of the game. But web3 games are still in their infancy and have some headwinds to overcome before capturing the imagination of the mainstream.

Increasing popularity of Web3 games

Between February 2023 and 2024, the web3 gaming industry received a total of over $162 million distributed in early and mid-stage funding. Richer gaming experiences paired with new revenue streams for developers through token sales, NFT trading, and in-game assets create a more sustainable and diversified business model in a decentralized and transparent environment. Web3 games offer innovative and creative opportunities for developers to try new ideas such as DeFi integration, VR and AR experiences, and global game studios are taking notice.

According to a recent report from CoinGecko, 29 out of 40 of the world’s largest video game companies invest in web3 games, including Microsoft, Tencent, Sony and Nintendo. It includes investing directly in web3 game projects, being actively involved in blockchain game development, and recruiting for blockchain-related roles. Epic Games, an eSports pioneer, is also riding the web3 gaming wave with plans to introduce at least 20 NFT games to the Epic Games Store in 2024 alone.

Meeting players where they are — Telegram

While the opportunities in Web3 gaming are many, it remains a niche segment. Game studios and developers need to use creative tactics to leverage their existing user base and appeal to them on a deeper level. Telegram-based games are a prime example of this, with the rapidly growing token-backed mini-app ecosystem tapping into the vast social network’s 900 million+ users and appealing to them with innovative gameplay, token rewards and digital asset airdrops. A few weeks after its launch during an airdrop to Notcoin (NOT) players in May this year, the NOT token reached a market cap of over $2 billion.

Understanding the importance of meeting gamers where they can reach a wider audience, Notcoin has partnered with us at Helika to establish an incubation center for the next generation of Telegram games. Telegram Gaming Accelerator will help Telegram-based mini app developers better understand their users, develop exciting experiences, and entice newcomers with value-driven incentives. As more and more traditional gamers grasp the possibilities of web3 gaming, mainstream adoption will occur slowly, then suddenly.

Scaling web3 games for mass market

Despite undeniable improvements, web3 games must overcome additional challenges to scale for mass-market adoption. Barriers to entry for non-crypto users remain prohibitively high due to complexities such as integration of web3 wallets and learning best self-custody practices that are beyond the reach of the average gamer. Many web3 games struggle to gain traction due to high fees and high latencies from the underlying blockchain architecture, and game developers suffer from a lack of quality analytics to gain visibility into on-chain game economies.

As blockchain-based games seek to overcome these obstacles, removing the complexity of interacting with blockchain and scaling the technology to overcome latency, reliable data partners will be vital. Web3 game developers need to understand which elements of their games work (and which don’t) to develop a user experience as seamless and engaging as they’re used to, with all the added benefits of web3. This remains crucial for mass participation.

As users seek more immersive gaming experiences, web3 games hold the key and global game studios are throwing their hats in the ring. With nearly a billion users worldwide, initiatives like the Telegram Gaming Accelerator mark a giant step towards triggering mass adoption and igniting gaming theory that will bring the next billion users into the ubiquitous web.

Anton Umnov

Anton Umnov is the co-founder and CEO of Helika, the gaming world’s leading data analytics, marketing and game management platform. Anton is a serial entrepreneur and product leader with over 15 years of experience building and commercializing data and analytics products in the fintech, crypto and technology spaces. Prior to Helika, Anton served as vice president of data and insights at Drop, a fintech company, and as analytics leader at Nielsen, one of the largest global analytics firms.