The Future of Web3 Game Development: Expanding Infrastructure and Challenges

The Future of Web3 Game Development: Expanding Infrastructure and Challenges

Delphi Digital Report Highlights Growth and Obstacles in Blockchain Gaming

The world of Web3 game development is experiencing rapid expansion, according to a recent report by Delphi Digital titled “The Year Ahead for Gaming 2024.” The report reveals the current state of the infrastructure for Web3 game development, highlighting the growth potential and challenges faced by developers in this emerging industry. With the collective market capitalization of gaming projects demonstrating relative stability and the increasing popularity of blockchain gaming, the future looks promising. However, there are obstacles to overcome, including user acquisition costs and the need to strike a balance between profitability and user experience.

Blockchain Gaming Ecosystem:

The report highlights the current state of the blockchain gaming ecosystem, with around 1.2 million daily distinct active wallets participating in gaming protocols. This leads to a daily range of 15 to 25 million gaming transactions, showcasing the growing interest in Web3 gaming. Among the favored options for developers engaged in fully on-chain crypto gaming (FOCG) are Optimism and the OP Stack framework, with Starknet also gaining popularity. The report also sheds light on the primary markets for blockchain gaming, which include the Philippines, Nigeria, Pakistan, Singapore, Vietnam, South Korea, Hong Kong, China, and the United Arab Emirates.

Expansion and New Networks:

The report reveals that the total count of gaming-centric networks has been steadily increasing, with 76 new networks emerging in 2023 alone. These networks encompass general-use L1s, L2s, and appchains, providing developers with a wide range of options for building their Web3 games. Mobile gaming has also become an appealing platform for Web3 developers, thanks to improved onboarding processes and more lenient regulations. The report predicts that competition for player liquidity will be a significant theme in 2024, highlighting the importance of attracting and retaining players in the blockchain gaming space.

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Outpacing DeFi:

One notable finding from the report is that blockchain gaming has surpassed DeFi protocols in terms of on-chain transactions. In 2023, there was an average of 23 times more activity in the blockchain gaming space, emphasizing the focus on player liquidity for gaming-specific networks, subnets, and blockchains. This trend showcases the growing interest and engagement of players in Web3 games and the potential for further growth in the industry.

Challenges: User Acquisition and Rising Costs:

While the future of Web3 game development looks promising, there are challenges that developers must overcome. User acquisition for blockchain games can be expensive, with higher customer acquisition costs compared to non-Web3 alternatives. The report highlights a case study showing a 77% higher customer acquisition cost for mobile hypercasual games in the blockchain space. Additionally, the financialized player incentives and the escalating costs associated with launching and maintaining live operations for Web3 games pose significant challenges. Developers must find a balance between profitability and user experience to ensure the success of their games.


The infrastructure for Web3 game development is expanding rapidly, with the blockchain gaming ecosystem showing significant growth and potential. The increasing number of gaming-centric networks, the popularity of mobile gaming, and the focus on player liquidity highlight the industry’s progress. However, challenges such as user acquisition costs and the need for profitability pose obstacles that developers must navigate. As the global blockchain gaming sector is projected to grow substantially in the coming years, it is crucial for developers to overcome these challenges and continue innovating in the Web3 game development space.

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