Leveraging On-Chain Data to Boost Player Engagement in Web3 Gaming

Web3
gaming
has
seen
rapid
growth
in
recent
years,
driven
by
blockchain
technology’s
promise
of
enhanced
transparency
and
fairness.
According
to

Chainalysis,
web3
casinos
have
particularly
benefited
from
these
advancements,
with
platforms
receiving
$78.7
billion
in
cryptocurrency
between
January
2020
and
July
2024.

Growth
and
Transparency
in
Web3
Gaming

Blockchain-based
casinos
and
gaming
platforms
use
smart
contracts
to
ensure
game
logic
and
reward
distributions
are
publicly
auditable,
allowing
players
to
verify
fairness.
This
transparency
has
led
to
a
significant
increase
in
player
trust
and
platform
inflows.

However,
the
rise
of
web3
gaming
also
brings
challenges,
such
as
potential
vectors
for
money
laundering.
Implementing
Anti-Money
Laundering
(AML)
and
Know
Your
Customer
(KYC)
measures
is
crucial
for
mitigating
these
risks.
The
Chainalysis
Crypto
Compliance
solution
offers
a
suite
of
capabilities
to
help
platforms
protect
themselves
from
illicit
activities
while
maintaining
growth.

Navigating
Challenges
in
Web3
Gaming

Despite
its
promise,
web3
gaming
faces
several
hurdles
in
personalization,
player
growth,
monetization,
and
user
experience:

User
acquisition
and
onboarding:
According
to
the
Blockchain
Game
Alliance
(BGA)
2023
report,
55.1%
of
respondents
highlighted
onboarding
and
accessibility
as
major
concerns.
Easier
access
to
on-chain
data
insights
can
help
companies
identify
effective
acquisition
channels
and
optimize
onboarding
flows.
Player
retention:
Businesses
must
uncover
the
true
drivers
of
engagement
to
forge
lasting
connections
with
gamers.
On-chain
insights
into
player
preferences
and
activity
can
drive
personalized
retention
strategies.
Effective
monetization
strategies:
Integrating
blockchain
elements
like
in-game
asset
purchases
and
non-fungible
tokens
(NFTs)
adds
complexity.
On-chain
data
reveals
spending
patterns
and
helps
balance
revenue
generation
with
a
positive
user
experience.
User
experience:
Issues
like
cumbersome
onboarding
processes
and
complex
wallet
management
can
deter
new
players.
Analyzing
on-chain
friction
points
guides
UX
improvements.
Data
fragmentation:
Player
information
scattered
across
different
blockchains
creates
silos.
Unified
on-chain
analytics
provide
a
comprehensive
view
of
player
activity
for
more
data-driven
decision-making.

The
Pivotal
Role
of
Player
Insights

Web3
presents
opportunities
for
forward-thinking,
player-focused
businesses.
By
tapping
into
on-chain
data,
businesses
can
improve
player
relationships,
strengthen
competitive
positions,
and
establish
leadership
within
the
gaming
ecosystem.

Improving
player
relationships:
Analyzing
player
activities
within
non-custodial
wallets
allows
businesses
to
create
more
personalized
experiences.
Insights
into
spending
habits
and
asset
holdings
help
tailor
promotions
and
content.
Strengthening
competitive
position:
Detailed
analytics
on
players’
wallet
interactions
provide
insights
for
developing
finely
tuned
marketing
strategies
and
product
offerings.
Securing
ecosystem
leadership:
Aligning
product
development
with
player
preferences
and
activities
sets
industry
benchmarks
and
drives
innovation.

Simplified
On-Chain
Player
Insights

Teams
responsible
for
growing
the
player
base,
such
as
marketing
and
strategy
teams,
often
struggle
to
extract
value
from
complex
on-chain
data.
Ideal
solutions
should
translate
player
activity
across
wallets
and
blockchains
into
simple,
user-friendly
dashboards
and
workflows.
This
enables
teams
to
strategize
more
effectively,
optimize
resource
allocation,
and
cultivate
better
user
relationships.

On-Chain
Activities
of
VIP
and
High-Frequency
Players

VIP
players,
those
with
over
$100K
in
digital
assets,
represent
a
priority
segment.
Chainalysis
identified
over
500
such
Ethereum
wallets,
collectively
holding
over
$400
million
and
having
sent
$320
million
to
gambling
platforms
in
the
past
year.
Understanding
their
on-chain
footprint
is
essential
for
tailored
acquisition
and
retention
strategies.

High-frequency
players,
despite
lower
individual
wallet
balances,
have
sent
$5
billion
in
crypto
to
gambling
platforms.
Their
consistent
engagement
drives
platform
liquidity
and
boosts
daily
active
user
metrics,
which
are
vital
for
sustained
growth
and
recurring
revenue.

Strategic
Workflows:
Turning
Insights
into
Action

Mastering
VIP
Player
Acquisition

By
monitoring
on-chain
patterns,
marketing
managers
can
detect
funds
moving
to
rival
platforms
and
develop
tailored
engagement
campaigns
with
personalized
incentives
to
win
VIP
business.

Early
detection
and
prevention
of
player
migration
Focused,
data-driven
reengagement
strategies
Efficient
resource
allocation
Improved
player
loyalty
and
lifetime
value

Gaining
Wallet
Share
and
Retaining
Players

Strategists
can
segment
players
based
on
spending
patterns
and
platform
interactions
to
identify
pain
points.
Developing
strategies
like
competitive
fee
structures
and
loyalty
programs
can
attract
and
retain
players.

Comprehensive
understanding
of
user
segments
Identification
of
adoption
barriers
Refined
campaigns
to
increase
spending
Attraction
of
new
users
through
targeted
value
propositions
Data-driven
strategy
optimization

Harnessing
the
Transformative
Power
of
On-Chain
Player
Insights

On-chain
data
provides
visibility
into
player
activity,
preferences,
and
pain
points.
For
web3
gaming
businesses,
this
means
forging
deeper
relationships
with
players
and
making
data-informed
decisions
that
drive
acquisition,
retention,
and
wallet
share.

By
embracing
on-chain
analytics,
web3
gaming
platforms
can
cultivate
communities
that
prioritize
players.
Understanding
player
activity
allows
for
thoughtful,
data-informed
choices,
creating
an
environment
where
players
feel
genuinely
understood
and
valued.

The
future
of
web3
gaming
belongs
to
those
who
leverage
blockchain’s
transparency
to
understand
and
serve
players
better.
On-chain
data
is
the
key
to
unlocking
gaming
experiences
that
resonate,
engage,
and
endure.

Image
source:
Shutterstock

Leveraging On-Chain Data to Boost Player Engagement in Web3 Gaming

Growth and Transparency in Web3 Gaming

Navigating Challenges in Web3 Gaming

The Pivotal Role of Player Insights

Simplified On-Chain Player Insights

On-Chain Activities of VIP and High-Frequency Players

Strategic Workflows: Turning Insights into Action

Mastering VIP Player Acquisition

Gaining Wallet Share and Retaining Players

Harnessing the Transformative Power of On-Chain Player Insights