GameFi, a sector within the cryptocurrency space, has seen its fair share of ups and downs over the past year. While the industry has faced challenges, October has emerged as a crucial month for GameFi’s revival, thanks in part to Binance BNB Chain’s pivotal role. In this article, we’ll explore how Binance has played a significant part in GameFi’s resurgence.
Since the beginning of the year, the GameFi sector has been experiencing a decline, both in terms of market performance and user engagement. However, it’s important to note that this decline cannot be solely attributed to the broader market downturn; a decrease in the user base also played a significant role.
Despite these challenges, GameFi has recently witnessed a resurgence in its market capitalization. In October, the sector’s market cap surged by over $1 billion, reaching an impressive $13.6 billion. This resurgence marks a turning point for the industry, but it’s worth noting that the user count has yet to fully rebound, with March being the only month that saw more than 2 million users actively participating in GameFi projects.
Binance BNB Chain’s prominent role
One standout aspect of GameFi’s resurgence is the prominent role played by the Binance BNB Chain. A closer look at the data reveals that BNB Chain has hosted the largest number of games within the GameFi sector, boasting 953 games. Ethereum (ETH) followed closely behind with 764 games. However, Binance’s leadership doesn’t stop there.
Binance BNB Chain also leads in terms of the highest percentage of active games among all the analyzed blockchains. The network is home to 181 active GameFi projects, constituting a significant 25% of all active games across various blockchains.
data from DefiLlama reveals a notable surge in trading volume on the BNB Chain. In October, the daily trading volume on the chain exceeded $400 million on two occasions, signifying a considerable increase compared to the previous month, when this milestone was reached only once. As of the latest data available, the trading volume has slightly declined but remains robust at nearly $200 million.
However, it’s important to note that the Total Value Locked (TVL) on Binance BNB Chain has followed a different pattern. While trading volume surged, TVL experienced a gradual decline over the past few months. Interestingly, there has been a recent uptick in TVL, indicating potential renewed interest in GameFi projects on the BNB Chain.
The recent developments in the GameFi sector, driven in part by Binance BNB Chain’s activities, have sparked optimism about its future prospects. While challenges remain, the surge in market capitalization and increased trading volume on the BNB Chain are positive indicators for the industry.