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BITKRAFT Bullish Trends in Bearish Times - A Look At Web3 Gaming During our LP Summit, Jamie, Nico and Justin shared the stage at our BITKRAFT Annual Summit to present our view on some of the “Bullish Trends in Bearish Times” in the world of crypto-native gaming: 📉 Market Dynamics: 2023 witnessed a drastic reduction in Web3 gaming funding, dropping from $8.2B in 2022 to $1.1B in 2023 YTD, marking a 77% decrease Contributing factors include the macroeconomic climate leading to tighter capital markets, a shift in strategies from 'tourist' investors moving away from frontier markets, and a pivot towards infrastructure investments over content deals 🎮 Upcoming Games: In the coming 6-24 months, we expect there will be a dearth of highly anticipated Web3 game launches. These games, particularly Web 2.5 games, will play a pivotal role in bridging the gap towards mass adoption by easing players into crypto elements These games prioritize easy onboarding and gradually introduce Web3 features, aiming for a 'game-first, crypto-second' approach Anticipated launches will shape player habits in digital ownership and participation in secondary markets - moving users to cross the proverbial chasm of the technology adoption curve 🌐 Web3 User Acquisition (UA): UA in Web3 is transitioning from early to late adoption stages, focusing on effective user targeting and engagement. This proves difficult in a world of pseudonymity and immature infrastructure and data piping We believe that developing tools for customer segmentation, analytics, and attribution in the broader Web3 context will be fundamental to move gaming users through the funnel as these new games come to market Notable companies solving problems in this space include: Intract (gamified ad campaigns), Addressable (data analysis for customer segmentation), Thirdwave Labs (wallet data for identifying high-value users), and Spindl (attribution in Web3). 🕹️On-Chain Games: Crypto-native games represent a new cycle in Web3 games, leveraging the blockchain for game logic and state These games offer extensibility and composability, allowing players to modify and extend gameplay - on-chain games are the open-source software model for gaming Challenges in the space include scalability and creating engaging content that appeals to a wide audience - but we remain excited about this space, backing incredible teams like Playmint and David Amor to build at the frontier of gaming