October Blockchain Gaming Report: Insights into the Latest Trends in Active Users and On-Chain Gaming Ecosystem
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October Blockchain Gaming Report: Insights into the Latest Trends in Active Users and On-Chain Gaming Ecosystem
This report analyzes key developments including Web3 gaming users reaching record highs, the explosive growth of on-chain Telegram games, and traditional gaming giant Ubisoft entering the space.
Navigating Web3 tides with focused insightsAuthor: Stella L
In October 2024, the Web3 gaming market remained stable, contrasting with the broader growth momentum in the crypto market. Bitcoin rose 15.9% during the month, approaching its all-time high, while the market capitalization of gaming tokens stayed flat at $21.15 billion, similar to the previous month. Daily active users (DAU) reached 5.3 million, driven primarily by Telegram-based games, with blockchains such as Matchain, Sui, and Core achieving significant user growth through their integration with Telegram gaming.
Several key developments occurred this month: traditional gaming giant Ubisoft launched its first blockchain game on Oasys, and crypto fund VanEck invested in Gunzilla Games. Meanwhile, funding continued flowing into the sector—Azra Games raised $42.7 million in new financing.
Macro Market Overview
In October, the cryptocurrency market showed mixed performance, with Bitcoin demonstrating notable strength while other sectors saw more modest gains. Bitcoin climbed from $60,764 to $70,398, a 15.9% increase. Notably, Bitcoin hit $72,751 on October 29, nearing its record high of $73,104 set on March 14, 2024. In contrast, Ethereum’s performance was lackluster, rising only 2.7% from $2,453 to $2,519.
Data source: Bitcoin and Ethereum price trends
The crypto market in October was significantly influenced by macroeconomic conditions. The U.S. dollar strengthened while the Chinese yuan weakened, amid growing concerns over trade tensions and tariff risks. This currency volatility coincided with rising bond yields and higher gold prices, indicating complex shifts in global risk perception and investment flows.
With the U.S. election approaching, political factors increasingly affected market sentiment. Investors positioned themselves ahead of potential policy changes, accelerating Bitcoin's rally as markets weighed how different election outcomes might impact digital asset regulation and financial policies.
Institutional activity remained strong during the month, with Bitcoin exchange-traded products (ETPs) recording substantial net inflows. This sustained institutional interest, combined with Bitcoin’s clear outperformance relative to other crypto sectors, reflects increasingly selective positioning among large investors.
Regulatory developments continued shaping the market landscape. The FBI conducted an undercover sting operation targeting the NexFundAI token—an important milestone that led to market manipulation charges against three crypto firms and 15 individuals. Meanwhile, Crypto.com’s ongoing lawsuit against the SEC highlights the persistent tension between industry participants and regulators.
Blockchain Gaming Market Overview
In October, the blockchain gaming sector sent mixed signals: token market cap remained stable, but user metrics showed more pronounced changes. The total market cap of blockchain gaming tokens edged up slightly from $21.07 billion to $21.15 billion.
Data source: Blockchain gaming token market cap and Bitcoin market cap
User engagement metrics showed greater movement, with daily active users (DAU) reaching a new high of 5.3 million in October, up 11.3% from September. This surge was largely driven by Matchain’s peak user activity between October 10 and 13, when it launched four games within the Telegram ecosystem. The surge in Telegram-related gaming activity continues to reshape user acquisition models.
Data source: Daily active users in blockchain gaming
Transaction volume grew moderately, averaging 9.3 million transactions per day—an increase of 2.1% from September. However, this growth rate lagged behind DAU growth, and per-user transaction volume remained flat compared to the prior month.
Data source: Daily transaction count in blockchain gaming
Transaction value saw a slight contraction, declining 1.9% to an average of $7.5 million per day.
Data source: Daily transaction value in blockchain gaming
These metrics carry special significance within the broader context of cryptocurrency adoption. a16z’s "State of Crypto 2024" report estimates current active crypto users at between 30 million and 60 million—representing just 5–10% of the 617 million global crypto users reported by Crypto.com in June 2024. This stark gap highlights a major opportunity: converting existing cryptocurrency holders into active users. Although Web3 gaming has long been seen as a key catalyst for widespread blockchain adoption, its performance in the current market cycle suggests challenges remain in realizing this potential.
How can blockchain gaming builders adjust their strategies to close this participation gap? We will explore this further below.
Overview of Blockchain Gaming Public Chains
The number of active blockchain games reached 1,606 in October, a modest 1.6% increase from September. BNB Chain, Polygon, and Ethereum led the market with shares of 22.5%, 18.4%, and 13.6%, respectively.
Data source: Share of active game projects across public chains
DAU metrics revealed shifting competitive dynamics, with opBNB, Ronin, and emerging chain Matchain emerging as top performers. These chains recorded average DAUs of 1.2 million, 886,000, and 548,000, capturing 25.6%, 13.1%, and 11.2% of the DAU market share by the end of October.
Data source: Daily active game users per public chain
opBNB demonstrated strong momentum, with average DAU increasing 10.5% from September, driven by GombleGames and Alliance Games, whose user bases grew over 100% and 78%, respectively. Interestingly, this growth reflects BNB Chain’s strategic shift toward moving blockchain games onto opBNB, while BNB Chain itself saw a 43.8% decline in average DAU.
Matchain, a decentralized AI blockchain focused on data and identity sovereignty, launched its mainnet in August. Its daily user count surged from just 78 in September to 548,000 in October, primarily driven by Telegram-based games like LOL, Jumper, and Digiverse. Between October 9 and 13, Matchain peaked with an average DAU of 2 million, hitting a high of 3.3 million on October 12. Although user numbers dropped sharply afterward, they stabilized around 615,000 in the final week of October. This jump—from 78 to 548,000 DAU—highlights both the potential and challenges of user acquisition within the Telegram ecosystem. It also reflects a common challenge across the Web3 gaming industry: difficulty sustaining initial user surges and achieving consistent organic growth.
Data source: Matchain daily active game users
Sui performed strongly, with average DAU growing 105.1% to 186,000. Growth was fueled by multiple Telegram-based projects, including BIRDS (a memecoin and gaming mini-app) and MemeFi. Notably, MemeFi migrated its token issuance from Ethereum L2 Linea to Sui weeks before its airdrop. This combination of memecoins and gaming appears to be Sui’s strategy for maintaining user engagement.
Core saw its average DAU grow 75.7% to 109,000, driven by both established Web3 games like World of Dypians and Pixudi, as well as new Telegram-based titles. The “Talk-to-Earn” and “Tap-to-Earn” game TomTalk achieved remarkable success, accumulating over 1 million users on Core within a month. Core’s strategy seems focused on long-term ecosystem development through strong partnerships, such as those with TomTalk and Pixudi.
TON experienced a 27.7% drop in average DAU to 195,000, reflecting reduced activity in several games following their token generation events (TGEs). Nevertheless, TON’s earlier success in acquiring Telegram users has inspired widespread imitation across the industry. Beyond TON, multiple chains are now actively competing for Telegram’s user base. Matchain, Sui, and Core have achieved notable success, while emerging chains like Sei, Ancient8, and Viction are adopting similar approaches.
Meanwhile, other chains face their own unique challenges and opportunities. The Arbitrum community proposed redirecting the 220 million ARB tokens allocated for its "$220M Game Catalyst Program" (GCP) back to the treasury, highlighting demands for greater financial and operational transparency around the GCP.
In contrast, Immutable zkEVM took a strategic step toward decentralization by removing its deployment whitelist and enabling permissionless deployments. Since launching its testnet in March 2024, Immutable zkEVM claims significant growth, with over 2.5 million monthly active users on-chain in its first quarter.
Immutable
Blockchain Game Landscape
By the end of October, the blockchain gaming ecosystem included 3,503 games, of which 1,336 remained active. A total of 283 games attracted over 1,000 monthly active users (MAU), representing 8.1% of all games and 21.2% of active games.
Data source: Number of monthly active blockchain games
The Telegram gaming phenomenon continues to shape the industry landscape, yet faces sustainability challenges. Hamster Kombat topped the October leaderboard for Telegram Mini Apps with 51.9 million MAU. However, the gap between claimed user figures (nearly 300 million in August and September) and recent retention numbers, coupled with a 70% decline in its token price from its all-time high post-TGE, underscores the ongoing challenge of converting early user interest into sustained engagement.
Data source: Popular Telegram Mini Apps ranking
Elsewhere, Ubisoft entered the blockchain gaming space with Champions Tactics: Grimoria Chronicles, a tactical RPG launched on October 23 on Oasys’ Layer 2 Home Verse, focusing on PvP battles and team-building mechanics.
A notable investment event was VanEck’s crypto fund announcing its investment in Gunzilla Games. VanEck previously backed Parallel. Gunzilla launched its highly anticipated title Off the Grid on PlayStation 5 and Epic Games this month. Built on its own blockchain, Gunzilla (recently upgraded from an Avalanche subnet to an L1), the game is explicitly described in its official FAQ as “not an NFT game,” but rather a battle royale featuring “optional NFT elements.” This reflects a trend where blockchain features serve as supplementary mechanisms rather than core gameplay components.
Off The Grid
This evolving approach to blockchain integration—especially driven by established game studios—signals market maturation, where technology enhances rather than defines the gaming experience. This subtle shift could help bridge the gap between traditional and Web3 gaming.
Blockchain Gaming Investment and Financing
In October, the Web3 gaming sector showed robust growth in fundraising activity, raising $94.6 million across 13 deals—a 44.2% increase compared to September. Four of these funding rounds did not disclose amounts.
Blockchain gaming fundraising events in October 2024 (source: crypto-fundraising.info)
The highlight of the month was Azra Games raising $42.7 million in a Series A round led by Pantera Capital, with support from industry heavyweights including a16z crypto, A16Z GAMES, and NFX—signaling strong confidence in advanced mobile gaming experiences. Azra’s vision for a “fourth-generation mobile RPG” marks a significant evolution in mobile gaming, delivering console-grade experiences with open worlds, sophisticated camera systems, real-time combat, and extensive PvE content. An increasing number of investors are betting on the convergence of console-quality gameplay with mobile platforms, suggesting a potential shift in how Web3 games are consumed.
Infrastructure also saw strong activity, with Alliance Games securing a $5 million Series A round co-led by Animoca Brands and Asymm Ventures. Alliance Games focuses on AI-driven decentralized infrastructure, addressing critical needs within the ecosystem.
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