Telegram Dominates Web3 Gaming with 21% of 2024 Launches: Game7 Report

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Ruholamin Haqshanas

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Ruholamin Haqshanas

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Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

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November 14, 2024 07:06 EST

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Telegram has emerged as a significant platform for Web3 gaming, capturing 21% of new game launches in 2024.

Developers and publishers are leveraging the messaging app to boost user acquisition and engagement, Game7, a community dedicated to advancing blockchain technology in gaming, said in its 2024 State of Web3 Gaming Report.

The report, created in collaboration with research firm Naavik, claimed that the surge in Telegram’s influence could challenge traditional mobile platforms like Apple and Google, which continue to impose restrictive app store policies and face regulatory uncertainties.

telegram gaming seems to be more than just another meta

over the past months avg session lengths have increased from 3 to 7 mins, which means higher engagement

also most top games have a DAU/MAU ratio of 45%.

this is impressive cause even web2 games average 20-30%

— sosboy (@FadedSolMaxi) November 13, 2024

Immutable and Arbitrum Lead in Web3 Gaming

The report further revealed that Immutable and Arbitrum stand out as the fastest-growing ecosystems in Web3 gaming.

Immutable recorded a 71% year-over-year growth, with 181 announced titles, many of which migrated from Polygon.

Arbitrum achieved a 68% increase, driven by its Orbit Framework, which supported 23 new gaming networks.

The rise of Layer 2 and Layer 3 networks has become the new standard for blockchain gaming.

In terms of geography, APAC regions, including South Korea and Singapore, accounted for 39% of new Web3 game launches, followed closely by the U.S. at 36%.

Despite a 36% decline in new game announcements compared to 2023, the sector saw an 84% drop in developer exits, signaling increased stability.

However, only 34% of games have integrated blockchain functionality, highlighting ongoing challenges in bridging gaming and blockchain technologies.

Notably, the Epic Games Store added 81 Web3 titles in 2024, while Steam maintained its restrictive stance on blockchain games, pushing developers toward alternative channels.

Console gaming showed initial signs of blockchain adoption, though major players like Sony and Microsoft remain cautious.

Developers are primarily focusing on console audiences without integrating blockchain features.

Funding Grows by 17%

Funding for Web3 gaming grew by 17% year-over-year by Q3 2024, with a shift toward smaller, strategic rounds focused on token launches.

However, the industry remains constrained by macroeconomic uncertainties and the absence of a breakout hit comparable to “Axie Infinity.”

Gaming token launches surged by 200% YoY, with game titles accounting for 74% of these launches.

“Our team believes in empowering stakeholders in the Web3 gaming industry, which is what has informed the stringent standards of data integrity, verifiable trend reporting and accountability of Game7”, said Steven Chen, Core Contributor at Game7.

Meanwhile, the report identified methodological gaps in current blockchain gaming metrics, with wallet activities and on-chain data providing an incomplete picture of user engagement.

Game7 said a focus on developer activity and ecosystem growth is a more reliable indicator of the industry’s trajectory.

“As new Web3 games reveal the potential of this emerging category, understanding the evolving market dynamics, technologies, and best practices is key to enabling tomorrow’s leaders,” said Aaron Bush, Co-Founder of Naavik.

As reported, Web3 shooter game Off The Grid (OTG) saw a surge in user engagement, reaching an all-time high of 207,450 unique active wallets (UAW) on November 12.