3 - 5 minute read
According to a report by Andreessen Horowitz (a16z), a venture capital firm, the Web3 gaming industry is the ideal sector to attract more crypto users. The firm’s crypto arm states that Web3 games are generating 23 times more on-chain transactions than decentralized finance (DeFi), and the sector is expected to be a huge opportunity for welcoming new users to crypto.
In its latest “State of Crypto” report, a16zcrypto made bold assertions about the growth potential of the cryptocurrency market, stating that the current state of adoption can be likened to the early days of the internet in the 1990s. The report compared the growth of internet users in 1990 to the growth of crypto users in 2016.
Furthermore, the report cited Web3 gaming as the best sector to onboard new crypto users. It highlighted that the sector was able to generate 23 times more on-chain transactions than DeFi, paving the way for a large wave of crypto adoption. a16zcrypto’s predictions for 2023 include governments passing bipartisan crypto regulation, “on-chain” games rising in popularity, and non-speculative uses of tokens becoming more common as blockspace becomes more affordable.
According to the report by Andreessen Horowitz, the Web3 gaming industry presents a unique opportunity for the crypto market to draw in new users. Its prediction that “on-chain” games would increase in popularity is based on the assertion that current in-game digital purchases point towards an eventual shift to on-chain gaming due to superior security, transparency and user experience.
The report by Andreessen Horowitz presents an interesting opportunity for traders to explore the potential of Web3 gaming. It presents a nascent opportunity for investors to explore new and emerging markets in cryptocurrencies. With an estimated $67.9 billion worth of digital in-game purchases in 2022, there is no doubt this industry has the potential for explosive growth.
The Bottom Line
The Web3 gaming industry’s potential to ramp up crypto adoption cannot be ignored. The Andreessen Horowitz report highlights that the industry’s growth is similar to the internet in the 1990s; this presents opportunities for traders and investors to get in on the ground floor. It is expected that the industry will present new and emerging opportunities for traders, who will be looking to capitalize on the growing sector.
