Web3 Gaming Is Reaching a Tipping Point as Spot Cryptocurrency ETFs Get Approved

The approval of spot cryptocurrency ETFs, along with a wave of new money and more traditional gaming companies jumping on board, indicate that Web3 gaming is reaching a tipping point.

Immutable co-founder Robbie Ferguson says that the approval of spot cryptocurrency ETFs, along with a wave of new money and more traditional gaming companies jumping on board, is indicating that Web3 gaming is reaching a tipping point.

This year has been a big one for cryptocurrency adoption, with spot Bitcoin ETFs getting the green light in January and spot Ether ETFs following in May.

Ferguson says it’s tough to make a direct connection between these approvals and the gaming industry, but it definitely can’t hurt.

“It’s hard to draw a direct correlation between the two, but ETF approvals have certainly brought crypto back into the minds of the general public, and ultimately, gaming is one of the easiest adoption options for those looking to experience what the industry has to offer,” Ferguson told Magazine.

Jack O’Holleran, the CEO of Skale Labs — the firm behind layer-2 Ethereum scaling solution Skale Network — shared a similar sentiment, saying that ETFs will only be a positive for the Web3 gaming industry.

“As institutional inflows grow, we anticipate heightened focus on Web3 gaming projects, potentially accelerating development and innovation within the industry,” O’Holleran told Magazine.

“This regulatory progress reinforces Ethereum’s role in the decentralized ecosystem, paving the way for broader adoption and integration of blockchain technology across gaming platforms,” O’Holleran added.

Ferguson pointed out that by the end of May, when spot Ether ETFs were approved, the market capitalization of blockchain gaming tokens hit a significant high compared to the beginning of the year.

“Data suggests a similar influx of interest and capital, as in May, the market cap of blockchain game tokens closed at $25.64 billion, an increase of around 21% since January 2024,” Ferguson said while highlighting that more and more traditional gaming companies are starting to invest in the Web3 industry.

Traditional gaming firms are flocking to Web3

“Over half of the largest gaming companies are already investing in Web3, either by developing their blockchain games, investing in Web3 gaming projects or hiring for blockchain positions,” Ferguson said.

He explained that gamers are starting to see a more level playing field in Web3 gaming compared to the dominance of gaming giants.

“They’re now seeing how monetization, with the right mechanics, can also boost the value of the player experience,” he said.

“Unfortunately, gamers typically get the end of the stick when it comes to game publishers experimenting with new business and monetization models to keep player retention high while keeping their costs low. Aligning player and publisher incentives is critical to mainstream adoption,” Ferguson said while highlighting that Immutable plans to launch a significant amount of new titles before the end of 2024.

“With over 330 games now signed on Immutable, we anticipate that 40% of them will be launched in 2024. This is the culmination of nearly $20 billion invested into games and gaming platforms over the last four years,” Ferguson said.

Notcoin jumps 17% as other gaming tokens tumble

Notcoin, the gaming token for the Telegram-based tap-to-earn game Notcoin, climbed 16.76% over the past seven days as other gaming tokens tumbled between 15% and 20% over the same period.

NOT’s price spike among a sea of red in the broader cryptocurrency market comes after Notcoin announced an accelerator collaboration with AI-powered analytics firm Helika Gaming for game developers interested in building Telegram games.

“Notcoin and Helika will help game studios, mobile apps, and indie developers to build great gaming experiences on top of the Telegram platform and TON blockchain,” Notcoin said.

“We want to expand it and open an accelerator for game developers who will lead the wave of Telegram games,” it added.

Launched in March, the “idle game” pulled in over 30 million users on Telegram in its first two months, getting them to set up The Open Network-based crypto wallets.

By tapping their screens to earn NOT tokens, the game brought over 3% of Telegram users into the Web3 world. While Notcoin saw a spike, other gaming tokens took a nosedive.

Gala took the biggest hit at 21.95%, while Immutable, Beam and Ronin declined 21.81%, 17.41% and 17.27%, respectively, according to CoinMarketCap data.

Hot take: Bitcoin Snake

If you’re a fan of classic mobile games and miss the simplicity of older brick-shaped mobile phones, then Bitcoin Snake might be up your alley.

Developed by THNDR Games — the creators of other Bitcoin-earning games such as Bitcoin Solitaire and Bitcoin Bay — Bitcoin Snake is a modern twist on the classic Snake game that first appeared on the Nokia 6610 device in 1997.

If you forgot what it was like

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