According to data from the company Namsen, the Ronin sidechain, developed by the creators of GameFi’s most successful game, Axie Infinity, recorded 560% more transactions than Ethereum itself last November.
Axie Infinity and the Ronin Chain
Researcher Martin Lee from Namsen explains:
“A lot of blockchains, whether they like it or not, will specialize. Even though creators might not plan for it, developers will force them to go a separate way, purely because of the trade-offs different chains have – developers will be attractive to developers for specific reasons”.
Axie Infinity, the game that is all about “play to earn”, has around 2.8 million daily active users and Ronin is also processing 40% more transactions than Avalanche, one of the most popular Level 1s by transaction volume, again according to the Namsen report.
Martin Lee added:
“What stood out to me was the sheer number of transactions on the chain relative to other layer 1 solutions like Avalanche or Fantom,” Lee said. “That alone is a signal for other, similar layer 2s to be created. If one single game demands so much out of the underlying blockchain, what happens when a chain is home to multiple games?”$
The limits of Ethereum
Lee’s report then also discusses the issue of cost, the real Achilles heel of the Ethereum blockchain network, which developers hope to resolve with the new Arrow Glacier update coming in June.
The report reads:
“Gas fees on Ethereum hovers between 50-100 gwei making micro transactions uneconomical. Ronin, on the other hand, offers 100 free transactions per wallet per day. In the future, there will be a small fee once the $RON token is released, but it will likely cost less than $1”.
The company expects other developers to take advantage of Ronin soon, considering we’re just in the early stages of launching this blockchain.
“It’s still early days for Ronin and it will be interesting to see how the blockchain develops and grows over time. Will Ronin become the go-to blockchain for gaming? Only time will tell”.
This is the conclusion of Lee’s study.
Record-breaking Axie Infinity
Axie infinity has posted record NFT sales related to its game worth about $3.85 billion. It represents perhaps the most resounding case of the incredible success of GameFi, the game linked to NFTs and decentralized finance.
According to a recent survey of the world’s top 197 gaming companies, 58% are now considering incorporating blockchain into new games, and 44% are considering incorporating the NFT reward system into new games.
The world’s largest video game shop chain, Gamestop, recently announced that it will create a team of cryptocurrency and blockchain experts, including an NFT engineer.