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The Growing Influence of Web3 in the iGaming Industry

The iGaming industry is experiencing significant growth, with global market projections reaching $127 billion by 2027. A key driver behind this trend is web3 gaming, which enhances the gaming experience through features like in-game asset ownership, community-driven development, and increased transparency.

Web3 Gaming vs. Traditional Mobile Gaming

Unlike mobile gaming, which often involves costly in-app purchases, web3 gaming allows users to monetize their spending and gain a sense of ownership of the game. However, web3 gaming is still in its early stages and faces challenges before it can attract mainstream attention.

The Rising Popularity of Web3 Gaming

Between February 2023 and 2024, the web3 gaming sector received over $162 million in early and mid-stage funding. This influx of investment is driving the creation of richer gaming experiences and new revenue streams for developers through token sales, NFT trading, and in-game assets. Web3 gaming offers developers innovative opportunities to experiment with new ideas, such as DeFi integration and VR and AR experiences, catching the attention of global gaming studios.

According to a recent report by CoinGecko, 29 out of the 40 largest video game companies, including Microsoft, Tencent, Sony, and Nintendo, are investing in web3 gaming. These investments include direct funding for web3 projects, active engagement in blockchain game development, and hiring for blockchain-related roles. Epic Games, known for its contributions to eSports, plans to introduce at least 20 NFT games to the Epic Games Store in 2024.

Leveraging Telegram for Web3 Gaming

While opportunities in web3 gaming are abundant, it remains a niche segment. Gaming studios and developers need to employ creative tactics to capitalize on existing user bases. Telegram-based games are an excellent example of this, leveraging the vast social network’s 900 million users. These games offer innovative gameplay, token rewards, and digital asset airdrops. For instance, within weeks of launching during an airdrop for Notcoin in May, the NOT token reached a market capitalization of over $2 billion.

Understanding the importance of meeting gamers where they are, Notcoin has partnered with Helika to establish an incubator for the next generation of Telegram games. The Telegram Gaming Accelerator will help developers of Telegram-based mini-apps better understand their users, create exciting experiences, and attract newcomers with value-driven incentives. As more traditional gamers realize the potential of web3 gaming, mainstream adoption will happen gradually, then suddenly.

Scaling Web3 Gaming for Mass Market Adoption

Despite its growing popularity, web3 gaming must overcome several challenges to achieve mass market adoption. For non-crypto users, the barriers to entry are high due to complexities like integrating web3 wallets and learning about self-custody best practices. Many web3 games struggle with high fees and latency issues from the underlying blockchain architecture. Additionally, game developers lack quality analytics to gain visibility into their on-chain game economies.

As blockchain-based gaming works to overcome these hurdles and abstract the complexities of interacting with the blockchain, reliable data partners become essential. Web3 game developers need to understand which elements of their games are effective to create a user experience that feels as smooth and compelling as traditional gaming, with all the added benefits of web3. This is crucial for onboarding the masses.

As users seek more immersive gaming experiences, web3 gaming holds the key, and global gaming studios are increasingly participating. With nearly one billion users globally, initiatives like the Telegram Gaming Accelerator represent a significant step toward mass adoption, potentially onboarding the next billion users to the web3 ecosystem.

“As users seek more immersive gaming experiences, web3 gaming holds the key, and global gaming studios are increasingly participating.”

About the Author

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

#Web3 #CryptoAdoption

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