In blockchain news today, Animoca Brands co-founder Yat Siu says although on-chain transactions measure is an important metric to consider when addressing player engagement across blockchain gaming, the measure isn’t the best.
Bloomberg first reported on Siu’s comments on Sunday 23 October, citing remarks made during an interview ahead of the Hong Kong Fintech Week.
The observations also come days after a report that some of the best blockchain gaming platforms such as Decentraland (MANA/USD)and The Sandbox (SAND/USD) were recording very few numbers when it comes to daily active users.
Other metrics tell a better story
According to Siu, the blockchain transactions metric, which includes such data as sales of NFT lands in the metaverse, does not reflect the broader outlook regarding user engagement.
He noted that in the case of The Sandbox for instance, the figure of 500 daily active users doesn’t reflect the fact that there are more NFTs holders looking to use their assets in-game than those looking to sell them.
In his view, there are other metrics to consider, including jobs created and revenue generated across platforms such as The Sandbox. He says these metrics offer a more accurate measure of player engagement than just the daily active user count.
He pointed out that The Sandbox has over 200,000 monthly active users, with individual landowner wallets pegged at $500,000 to $2 million.
So looking at daily on-chain transactions alone is like claiming that the number of people trading on Wall Street is equal to the population of the United States.
Earlier this month, The Sandbox CEO Arthur Madrid, commented that “on-chain transactions does not mean users,” with the gaming platform noting growth across various metrics.
Some comments about Web 3 metrics:
= Web 3 player worth more than Web 2 players engaged with a wallet, all payers VS low conversion in “Freemium” model;
= on chain transactions does not mean Users;
= NFT owners invest in an asset that will grow in value over time based Utilities; https://t.co/IIpsDjRUnm
— Arthur Madrid (@arthurmadrid) October 10, 2022
Despite the cryptocurrency market swoon in 2022, the latest report by DappRadar shows blockchain gaming and metaverse projects netted more than $1.3 billion from investors in Q3, 2022.
Blockchain-powered gaming activity across 50 networks showed over 912,000 daily Unique Active Wallets in September.
Alien Worlds and Splinterlands had the most activity in terms of players, with more than 160,000 daily UAW registered. Among the top five Web3 games, BNB-based Gameta and Polygon-based Benji Bananas also saw decent gains in daily UAW.