Gaming Blockchains Lead the Way in Web3 Growth, with More on the Horizon

Gaming continues to be a major driver behind the expansion of Web3, making up nearly one-third of all daily active users on decentralized apps (dApps).

With the increasing popularity of GameFi, blockchain games are pushing the limits of current infrastructure, prompting the development of specialized gaming blockchains to handle rising user demand. These game-oriented networks simplify the user experience, making onboarding easier and attracting more players, which is expected to accelerate the growth of both the number and quality of gaming-focused blockchain networks.

The Rise of Gaming Blockchains

In May 2024, blockchain gaming achieved a significant milestone, surpassing three million daily unique active wallets (dUAW). By July, this number hit four million, accounting for roughly one-third of the 15 million daily users in the entire dApp market. Initially, gaming on the Ethereum blockchain faced challenges like slow transaction times, high fees, and network congestion. As GameFi grew, developers recognized the need for more scalable, customizable networks, leading to the creation of gaming-dedicated blockchains.

Early Innovators in Gaming Blockchains

One of the earliest blockchains with scalability in mind was WAX. Originally focused on e-commerce, WAX shifted towards gaming and now ranks among the top ten gaming blockchains with 132,000 dUAW. Another standout is Ronin, developed by Sky Mavis, creators of Axie Infinity. Since 2020, Ronin has evolved into a full-fledged Layer-1 ecosystem, boasting lower energy consumption, faster block times, and minimal transaction fees. Today, Ronin supports 15 games and has surpassed other major blockchains like Tron and Solana in daily active users, reaching two million by mid-2024.

The Future: Layer-2 and Layer-3 Blockchains

Despite the growth of gaming-first blockchains, challenges remain. Building dedicated blockchains is expensive and slow, which is why developers are now focusing on Layer-2 (L2) and Layer-3 (L3) solutions for scalability. Ethereum L2s like Optimism and Arbitrum have significantly reduced gas fees and improved throughput, benefiting the GameFi sector. Even more promising are L3s, which offer near-instant transaction finality and can process thousands of transactions per second.

PlayBlock, an L3 built on Arbitrum Orbit, eliminates many of the complexities of blockchain gaming, offering gasless transactions, seamless wallet management, and faster gameplay. With the rise of L3 solutions, blockchain gaming is poised to become even more accessible, drawing in a larger audience from traditional gaming spaces.

What’s Next for Gaming Blockchains?

As L2 and L3 chains continue to evolve, they provide developers with the flexibility to rapidly innovate and scale. Major companies are also entering the space, with Sony announcing the launch of its own Ethereum Layer-2 gaming blockchain, Soneium. Other gaming giants like Ubisoft and Epic Games are likely to follow suit, accelerating the growth of new gaming blockchains and pushing GameFi into the mainstream.