• January saw an exceptional performance in the crypto market, with altcoins outpacing Bitcoin.
• AAA games have begun hitting the markets, led by Illuvium’s Beta launch.
• GameFi funding continued to drop, with only three projects receiving funding in January.
Crypto Market Performance
January was a highly favorable month for the crypto market, with altcoin prices significantly outperforming Bitcoin—which is usually the first of the two to experience a bullish cycle. This suggests that investors are strategically awaiting any sign of positive macro news to jump back into speculative assets.
Blockchain Games Launching
The long-awaited AAA blockchain games have finally begun hitting the markets, led by the Beta of Illuvium which has already seen much activity. Other popular games such as Axie Infinity and Polygon have seen user numbers increasing significantly since January 1st.
GameFi User Numbers
New users as a percentage of total users in GameFi decreased to 36% from 38.8% in December while active GameFi increased slightly at the end of December; however, new user numbers were still low compared to August 2022 figures.
GameFi Investment & Funding
GameFi funding continued to drop over January, hitting record monthly lows of $20.9M – although three projects within the space did receive backing during this period.
Crypto Macro Overview
In terms of broader developments within cryptocurrency markets: ETH increased from the low-$1,200s at the end of December to a high of $1,660; many prominent altcoins also doubled or tripled their values; BNB’s GameFi user numbers declined however overall sentiment remains largely optimistic amongst investors and developers alike.