- The Internet game marked a significant draw in 2022, with investors pouring in $4.5 billion, which also continues in 2023.
- The space still faces challenges in terms of scalability and adoption, as only 3% of gamers held NFTs last year.
- Interest in the rising space signals the gambling game could result in an explosion, with Axie leading to the expected infinity.
In the past year, the Web3 gaming sector has seen stellar growth in the hands of investors and venture capitalists. The rise of Non-Fungibles tokens (NFTs) and the Metaverse further devoured this interest which is expected to continue even in 2023, while investors can seize some of the biggest avenues.
Web3 gaming – Where is it and what next?
They have kept the Internet gaming industry in the hands of venture capitalists, who have invested nearly $4.5 billion in such projects. The fund received by the project has surpassed the game last year in terms of investment by 2021 by over 48%. Most of this was directed to Web3 gaming which accounted for 62% of web investments.
Interest in online ventures has not decreased significantly or continues to support the industry as a focus. Recently, the investment firm DWF Labs invested $16 million in the company RCA. The company intends to use the funding to further expand and become an online gambling ecosystem.
Similarly, Paima Studios’ web3 game engine integrated with Cardano allows users to play in-chain games with other networks. This feature enables cross-chain gaming for the DeFi blockchain, making it possible for users of other networks to play through a Cardano-based game without the need to bridge ADA or other standards.
However, while part of the Web3 game has support from lenders, it also needs to build a base with its users. A user poll from 2022 shows that only 3% of sellers own NFTs, and almost 52% of users surveyed are unaware of the term internet. In addition, it should be noted that only 15% of the respondents were actually participating in the online game.
But this is expected to change in the next quarter, as the rise in gambling standards could attract the attention of investors to gambling enterprises as well. As of last week, the game’s trading signals have seen a 22% surge, with volumes rising up to $1.5 billion.
Signs that could go big in Q2 2023
Among the many tokens playing in the crypto market – Axie Infinity (AXS), ApeCoin (APE) and Floki Inu (FLOKI) are expected to yield significant returns to their owners.
Axie Infinity is one of the largest staking ventures, and its asset, AXS, is expected to record a rise of over 48% as the venture trades in 2023. The altcoin would need to see some bullish support to break the critical point. resistance (CR), which sits at the confluence of the 200-day Exponential Moving Average (EMA) at $11.55. A break of this barrier will direct AXS to the 2023 high of $12.59.
AXS/USD 1-day chart
However, if the cryptocurrency does not find the buying pressure and the critical support (CS) settles at $7.95, the token could decline to the $7.20 roar in March. Not only will the bubble thesis be weakened, but the cryptocurrency will be vulnerable in the fall to $5.85 in December 2022.
ApeCoin continues to interest investors thanks to the Bored Ape Yacht Club being the largest NFT collection. Over the last 30 days, NFTs have generated $1.29 billion in trading volume, which could translate into bullish momentum for the token.
APE could mark a rise of over 50% in the alt season if the bulls support the cryptocurrency. A breakout at $5.00, matching the 200-day EMA, is an obstacle for them to overcome. This would allow for a new year-to-date chart high of $6.30.
FLAC / USD 1-day chart
However, selling pressure could trigger a decline and loss of CS at $3.70, leaving ApeCoin susceptible to a crash to the November 2022 lows of $2.80.
Belonging to the Dogecoin family, Floki Inu made a name for himself by attracting users to his NFT Metaverse game Valhalla. A recent Elon Musk Twitter stunt is expected to trigger a rise in meme currencies and FLOKI could benefit from the same.
To mark the new 2023 high, altcoin CR would need to break to $0.00004458, which is in line with the 50% Fibonacci Retracement of $0.00005559 to $0.00003224. Flipping into support, it could rise to $0.00005559, marking a 60% increase.
FLOKI/USD 1-day chart
But failure to do this could result in a disadvantage, and the price of Floki Inu will fall by CS to $0.00003224. This not only weakens the bull thesis, but it also leads FLOKI to drop to $0.00002078 in February.