A Comprehensive Overview of Web3 Gaming Diversity from 2017 to Present
- rachelbeautybar
- Aug 3
- 3 min read
Web3 Gaming has evolved into a diverse ecosystem, integrating blockchain, NFTs, DeFi, DAOs, and innovative economic models like Play-to-Earn (P2E) and Play-to-Airdrop (P2A). To understand the landscape, we can categorize games based on asset ownership, gameplay mechanics, and economic integration.
Categories of Web3 Games
By Digital Asset Ownership and Economy
NFT-Based Games: CryptoKitties, Gods Unchained
Play-to-Earn (P2E): Axie Infinity, The Sandbox, Alien Worlds
Move-to-Earn (M2E): STEPN, Genopets
Tap-to-Earn (T2E): Hamster Combat, Notcoin
Casino & Gambling Games
Metaverse Games: Decentraland, The Sandbox
By Genre
Role-Playing Games (RPG): Illuvium, Ember Sword
Strategy Games: Axie Infinity, Town Star
Action Games: Big Time, Chainmonsters
Casual Games: Benji Bananas, Crazy Defense Heroes
MMO (Massively Multiplayer Online): The Sandbox, Decentraland
Sports Games: Sorare, NBA Top Shot
Card Games: Gods Unchained, Splinterlands
According to industry reports, RPGs lead Web3 Gaming with 22% market share due to deep storytelling and tokenized asset integration. Action games account for 17%, while Strategy games capture 15%. Casual games hold 12%, showing that easy-access games also have a solid place in Web3 adoption.
By Production Scale & Development Quality
Indie Games: Small teams, minimal funding.
Midsize Games: Moderate budgets (<$10M).
Primitive: Proof-of-concept stage, minimal design.
AA Games: Budgets $10M–$25M, more advanced development.
AAA Games: Budgets >$25M, high-end production by major studios.
According to Game7 data (2023), 82% of Web3 games are indie or midsize, reflecting an early-stage market with huge growth potential as larger AAA projects emerge.
Web3 Gameplay Modes
PvP (Player vs Player): Competitive real-time battles with token/NFT rewards. Example: Gods Unchained.
PvE (Player vs Environment): Players fight AI and complete missions for tokenized rewards. Example: Illuvium.
PvP emphasizes social interaction and marketplace trading, while PvE focuses on character progression and asset collection, both driving tokenized economies.
Web3 Gaming Evolution Timeline (2017–present)
2017–2018: The Early GameFi Era
CryptoKitties: First mass NFT adoption, 30% of Ethereum’s traffic at peak, introducing digital asset ownership.
Axie Infinity (Early Stage): Laid the foundation for P2E but focused on financial gains over gameplay.
2018–2020: Play-to-Earn & Metaverse Rise
Axie Infinity: Millions of players earning via SLP tokens.
Decentraland: Decentralized virtual world economy.
Meta’s Metaverse Push: Zuckerberg’s $10B announcement boosted Decentraland and The Sandbox tokens like MANA to $5.90.
2020–2022: X-to-Earn Explosion
Move-to-Earn (M2E): STEPN, Genopets reached 30% monthly retention.
Tap-to-Earn: Simple models brought millions of Web2 users into Web3.
Peak UAW: 911,720 daily active wallets in Oct 2022 (DappRadar).
2022–present: AAA Stage & Metaverse Expansion
AAA Web3 Titles: Illuvium showcased 3D graphics and complex PvE/PvP.
Metaverse Market: Projected $447.8B by 2027 (CAGR 15.3%).
Tap-to-Earn Boom: Notcoin, Hamster Combat on Telegram reached ~200K daily wallets by Q1 2024.
The Future of Web3 Gaming
From CryptoKitties to AAA-quality Web3 titles, the industry has transformed into a complex, token-driven ecosystem. With growing investment in AAA and Metaverse projects, Web3 Gaming is shifting toward sustainability, deeper gameplay, and mass adoption.
Small investors can leverage early-stage X-to-Earn projects or invest in promising tokens, but understanding market volatility and GameFi risks is essential.
Conclusion
Web3 Gaming has evolved from simple NFT collectibles to immersive AAA-level experiences, blending DeFi, token economies, and metaverse integration. With billions in investment and rising user adoption, the future of Web3 Gaming promises to reshape how players own, interact with, and profit from digital assets.
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