The blockchain gaming industry is currently facing significant challenges, as noted by Gunzilla Games Web3 director Theodore Agranat. He highlighted the key issue of a lack of fresh capital entering the market, explaining that existing funds are merely being shuffled between various projects. The number of daily active wallets in blockchain gaming has decreased from around 10 million last summer to about 7.5 million today, indicating a decline in genuine user engagement. Agranat pointed out that much of the activity is artificially driven by users creating multiple crypto wallets to collect airdrops, which is an unsustainable practice. This leads to a transient user base where players move from project to project based solely on potential returns, lacking loyalty to any specific game. Despite the downturn, the industry did see a threefold increase in on-chain activity compared to the same time last year, spurred in part by airdrop campaigns. Overall, Agranat's remarks paint a picture of a market in need of new investment and stable user engagement.

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