GameFi is a term used to describe the intersection of gaming and blockchain technology in the context of web3. In web3, blockchain technology is used to enable new forms of decentralized applications and services that allow users to interact with each other in a trustless manner without the need for central authority.

GameFi analysis can be useful for a number of different groups, including companies, players, investors and gamers.

A GameFi company may be interested in GameFi analytics for a variety of reasons:

1. Improved decision-making: GameFi analytics can provide valuable insights and data- driven recommendations that can help a GameFi company to make more informed and strategic decisions. This can include data on player behavior, game performance, and market trends, which can help the company optimize game design, marketing, and monetization strategies.

1. Enhanced player experience: GameFi analytics can provide insights into player behavior and preferences, which can help a GameFi company to create more engaging and personalized game experiences. This can include data on player interactions, challenges, and achievements, which can be used to design and implement game features that are more relevant and rewarding for players.

1. Increased revenue and profitability: GameFi analytics can help a GameFi company to optimize its monetization strategies and to maximize revenue and profitability. This can include data on player spending habits, in-game purchases, and advertising performance, which can be used to identify opportunities to increase revenue and to improve the overall financial performance of the company.
   Overall, GameFi analytics can provide a GameFi company with valuable insights and data-driven recommendations that can help to improve decision-making, enhance player experience, and increase revenue and profitability.

Players can benefit from analysis by getting deeper to game mechanics and strategies, players can gain a better understanding of how the game works and how to play it effectively. This can help them improve their gameplay and increase their chances of winning. Additionally, players can use analysis to track their own performance and progress, and to identify areas where they need to improve or adjust their approach.

Investors can use analysis to evaluate the potential profitability and sustainability of different gaming protocols. This can help them identify which protocols are likely to generate the greatest returns, and which may be more risky or uncertain. Investors can also use analysis to track the performance of their investments over time, and to make decisions about when to buy or sell their holdings.

Researchers can use analysis to study the behavior and dynamics of the GameFi ecosystem, and to identify trends and patterns that may be relevant for future development. This can include analyzing data on player behavior, game mechanics, and market trends, as well as conducting experiments and simulations to test hypotheses and predictions.

Game developers and designers can use analysis to improve the design and functionality of their games, and to optimize the gameplay experience for users. This can include analyzing data on player behavior and preferences, as well as conducting user testing and feedback surveys to identify areas for improvement. Developers and designers can also use analysis to identify new trends and innovations in the GameFi ecosystem, and to incorporate these into their own games.

・GameFi Users

While new users reflect a project’s customer acquisition ability and vitality, new user metrics are a warning for the life cycle of a GameFi project. At present, most GameFi projects are in a death spiral after a period of operation. Once new players join the game at a lower rate, old players have a longer payback period, and the ecology collapses, the death spiral of the project begins.

In Daily Users, we can observe the gain trend of new users. In addition to the absolute value, we can also use the indicator of New Users % to better evaluate the growth rate of new users.

Daily Users of Starsharks

**StarSharks was a popular card-based game on BNB. This dashboard shows when and how the game rapidly gained users and the number of players that continue to play after its death spiral.

Ranking of Daily Gamers compares multiple platforms’ user growth: generally speaking, higher new user growth rate reflects a project’s ability to acquire new users and its vitality at a certain stage.

Ranking of Daily Gamers

**There are many ways to gauge player activity in a game, including new, active, and total users. This chart tracks all these and shows real-time changes. For example, it becomes apparent that the game with the most users is not necessarily the most sustainable.

・User Retention Rate

For traditional games, we pay attention to DAU, the inflow of new users, because it is the basic indicator of project operation and reflects the vitality of the project. In the GameFi industry, the magnitude of the project can be judged by the number of users, which is the basic indicator of the game project.

For instance, we can observe that some chains, such as WAX, Hive, etc., have a large number of game users from the user distribution tree of chains in the picture below, which shows the number of users from various public chains and projects. Despite not being the top chains by TVL, they overtake Ethereum and BSC’s head chains to become the chains with the most users.

Number of GameFi Users

**A tree-map chart is one of the easiest ways to quickly see which games are the most popular on a given chain and to see where a chain’s traffic, and overall GameFi traffic, comes from. For example, we see that Alien Worlds is WAX’s largest title, but Farmers World matters too.

User retention rate is a significant metric when doing user analysis. It shows the percentage of users retained on a protocol. In short, it shows how many users are retained by the project at a certain stage, which can reflect whether the project is valuable to users and how many users are willing to become active users of the project after experiencing the game.

Monthly Retention Analysis of Starsharks

・User Transaction Analysis

Transactions per User. Transactions per user (total transactions/number of users) is the average number of transactions per user, which reflects user engagement, and the soundness of the product and tokenomics design.

Volume per user by chain

The data from Volume per User Trended by Chain shows that the transaction value per user has dropped significantly since 2022. Many projects encountering the death spiral and a reduced investment with a shortened payback cycle are probably the main points of consideration for most users.

Volume Per User Trended by Chain

**Overall volume per user has declined, but—as evident from the chart—this metric is highly irregular and prone to swings. When it comes to profitability, GameFi is truly volatile.

Number of transactions per user. The number of transactions per user is the average number of transactions per user. If we only consider the number of transactions, it is difficult to see if it is caused by the large number of trading users. Calculating the value per user gives a more objective assessment of efficiency/behavior.

Number of transactions per user by chain

Trended by Chain shows the number of transactions per user across chains. Since GameFi requires more capacity on networks than traditional gaming, the protocols supporting these projects require cheaper gas fees and fast transactions. Therefore, many chains are deploying dedicated chains specifically for gaming applications and improving performance to promote more project usage and user transactions. Thus, if the number of transactions per user is larger, it means that the chain is more popular among users, and it also reflects that the chain has span transaction performance and low gas cost, which is more cost-effective.

Transaction Per User Trended by Chain