Web3 gaming mainstream adoption will happen gradually, then suddenly | Opinion

The iGaming industry is experiencing remarkable growth, with global market projections expected to reach $127 billion by 2027. A significant contributor to this trend is web3 gaming, which enhances the gaming experience through features like in-game asset ownership, community-driven development, and improved transparency.

Unlike traditional mobile gaming, which often involves hefty costs and numerous in-app purchases to access quality content, web3 allows users to monetize their spending and enjoy a true sense of ownership over the game. However, web3 gaming is still in its early stages and faces challenges before it can fully capture mainstream interest.

The Rising Popularity of Web3 Gaming

From February 2023 to 2024, the web3 gaming sector attracted over $162 million in early and mid-stage funding. This growth is fueled by richer gaming experiences and new revenue opportunities for developers through token sales, NFT trading, and in-game assets, creating a sustainable and diversified business model in a decentralized environment. Web3 gaming offers developers innovative avenues to explore new concepts, such as DeFi integration and immersive VR and AR experiences, and global gaming studios are taking notice.

According to a recent CoinGecko report, 29 out of the world’s 40 largest video game companies, including Microsoft, Tencent, Sony, and Nintendo, are investing in web3 gaming. This includes direct investments in web3 projects, active blockchain game development, and hiring for blockchain-related roles. Epic Games, a leader in eSports, is also joining the trend, planning to launch at least 20 NFT games on its Epic Games Store in 2024.

Engaging Gamers on Telegram

Despite the opportunities in web3 gaming, it remains a niche market. Gaming studios need to adopt creative strategies to tap into existing user bases and engage them meaningfully. Games based on Telegram exemplify this approach, leveraging the platform’s vast user base of over 900 million with token-backed mini-apps that offer innovative gameplay, token rewards, and digital asset airdrops. For instance, the NOT token from Notcoin achieved a market capitalization of over $2 billion shortly after launching during a May airdrop.

Recognizing the importance of meeting gamers where they are, Notcoin has partnered with Helika to launch an incubator for the next generation of Telegram games. The Telegram Gaming Accelerator will help developers of mini-apps better understand their users, create engaging experiences, and attract newcomers with valuable incentives. As traditional gamers discover the potential of web3, mainstream adoption is likely to evolve gradually.

Scaling Web3 Gaming for the Mass Market

Despite the promising momentum, web3 gaming faces significant challenges to achieve mass market adoption. For non-crypto users, barriers like complex wallet integration and the intricacies of self-custody can deter participation. Additionally, many web3 games struggle with high fees and latency due to blockchain infrastructure, while developers often lack quality analytics to understand their on-chain economies.

To overcome these obstacles, the industry must simplify blockchain interactions and ensure reliable data partnerships. Web3 developers need to identify which game elements are effective and which are not, creating a user experience that is as seamless and compelling as traditional gaming—while also leveraging the benefits of web3. This is crucial for onboarding a broader audience.

As players seek increasingly immersive gaming experiences, web3 gaming has the potential to deliver. With nearly a billion users worldwide, initiatives like the Telegram Gaming Accelerator represent a significant step toward driving mass adoption and engaging the next wave of users in the expanding web3 landscape.