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Author: stella@footprint.network
Data Source: Ronin Dashboard
In a significant move, the popular Web3 game Pixels migrated from Polygon to Ronin, the game-specific blockchain, in late October 2023. Previously the leading Web3 game on Polygon in terms of unique active users (wallets), Pixels’ migration to Ronin signals a noteworthy recovery for the platform following a hacking incident in March 2022.
Since the migration, Ronin has experienced a surge in on-chain activities throughout November. While Ronin was previously heavily reliant on Axie Infinity, the pioneering play-to-earn Web3 game, we will explore the current state of Ronin and delve into the statistics that showcase its recent resurgence.
What’s Ronin?
Ethereum’s architecture, while revolutionary, was not optimized for the demands of high-speed and cost-efficient gaming transactions. This inherent limitation became a bottleneck for the growth and player retention of Axie Infinity in 2021. In response to these challenges, Sky Mavis, the Vietnamese studio behind Axie Infinity, took a decisive step by launching the Ronin network mainnet in February 2021.
Ronin, an Ethereum sidechain, was meticulously designed to cater specifically to the gaming industry’s needs. It aims to provide a robust, swift, and economical platform conducive to the dynamic expansion of gaming applications. This strategic move was geared towards eliminating the barriers that once impeded the seamless in-game experiences and transactional fluidity within Axie Infinity.
Sky Mavis has emerged as a pioneering force in the Web3 gaming landscape, achieving substantial growth and scale. As per data from Footprint Analytics by November 2023, Axie Infinity has amassed a remarkable 9.88 million users, with a staggering 9.22 million — equating to 93.3% — attributable to Ronin. This flagship game’s success has endowed Sky Mavis with profound insights and expertise in the realms of blockchain game development and operational management.
Nearly three years post-launch, Ronin has carved out a significant niche within the Web3 gaming sector. Yet, the question remains whether it has solidified its position as the go-to blockchain for Web3 gaming.
Why Ronin?
Ronin has demonstrated its capability to scale a single game, such as Axie Infinity, to support millions of daily users. Sky Mavis, the company behind Axie Infinity, has gained valuable experience in product development, community engagement, and market strategies through the growth of this leading NFT project. This experience is potentially beneficial for partners looking to launch their projects on the Ronin network.
Ronin is designed to facilitate near-instant transactions with minimal fees, supporting a high volume of in-game transactions efficiently and seamlessly.
In March 2022, Sky Mavis’s Ronin network suffered a significant security breach where hackers stole 173,600 ETH and 25.5 million USDC due to a social engineering attack. As a result, Sky Mavis reinforced its security measures, adopting a zero-trust framework. Initially, Ronin used a Proof of Authority (PoA) consensus, relying on a select group of trusted validators for transaction verification, which was energy-efficient but less decentralized. To enhance decentralization, Ronin transitioned to a Delegated Proof of Stake (DPoS) system, allowing token holders to delegate their stakes to elect validators, thereby distributing network control more equitably.
Ronin Ecosystem
The gaming sector holds a prominent position within the Ronin ecosystem. Currently, there are eight live games on Ronin, namely Axie Infinity, The Machines Arena, Bowled, Battle Bears Heroes, Wild Forest, Apeiron, and the recently joined game, Pixels and Zoids Wild Arena. Additionally, two upcoming games, Axie Champions and Tribesters, are set to launch on Ronin shortly.
As of November, the combined activity from Axie Infinity and Pixels alone accounts for more than half of Ronin’s daily transactions and nearly 90% of its daily active users. This concentration of user engagement in a handful of titles, while indicative of their success, also highlights a potential vulnerability in Ronin’s ecosystem — the reliance on a limited number of games for its platform’s vitality.
Ronin’s current share of trading volume among public blockchains stands at 21.2%. This suggests that despite its dedicated gaming focus, Ronin’s market presence could be more robust. For Ronin to secure a competitive edge in the public blockchain arena, diversification and expansion of its game offerings are imperative.
Source: Monthly Volume Distribution
In recognition of this, Sky Mavis is actively pursuing strategies to broaden Ronin’s appeal and enhance its gaming ecosystem. A significant step in this direction was taken on November 2, with the announcement of a strategic partnership with ACT Games, a South Korean gaming studio. This alliance is set to bring all of ACT’s gaming titles into the Ronin fold, beginning with the blockchain trading card game Zoids Wild Arena, a move that promises to accelerate the growth and diversification of Ronin’s gaming landscape, potentially leading to an increase in both developer and user interest in the platform.
Alongside the games on Ronin, there are currently 23 decentralized applications (dApps) operating on the platform. These include Katana, Ronin’s native DEX, Ronin Wallet, and Mavis Market, an NFT marketplace. While Katana has gained some traction with a TLV of $92.8 million on November 30, many of the other dApps on Ronin have room for improvement in terms of user acquisition and engagement.
The Ronin Name Service (RNS) launched its public sale on November 15, 2023, revolutionizing the way users interact with the Ronin blockchain. RNS replaces complex wallet addresses with intuitive, human-readable names, facilitating easier and more accurate transactions. Additionally, RNS will be integrated across the Sky Mavis ecosystem, including App.Axie, Mavis Market, and upcoming platforms, streamlining user experience across the network.
Source: Ronin Name Service (RNS)
Data Insights
Let’s explore the latest developments and growth within Ronin’s ecosystem by examining the relevant figures.
Daily Active Users(DAU)
From July to October 2023, Ronin’s daily active users (DAU, measured by unique wallets) remained stable, averaging around 17.4K. However, with the migration of Pixels from Polygon to Ronin, the blockchain experienced a significant surge in DAU in November 2023. The figure skyrocketed from 17.4K baseline to 88.4K, reaching a peak of 152.8K on November 22. Significantly, Ronin’s DAUs exceeded the 100.0K threshold on November 16, sustaining this upward trajectory thereafter.
Source: Ronin Chain Daily Users
Daily Transactions
From July to October 2023, Ronin’s daily transactions maintained a relatively stable average of around 95.2K. Commencing in mid-October, the network experienced a marked increase in transactional activity. By November 30, the average number of daily transactions had surged to approximately 232.6K.
As the number of transactions increased, the average transaction fee on Ronin has been decreasing. From July to October 2023, the average transaction fee was 0.0022 RON. However, within November, the average transaction fee decreased to 0.0019 RON, representing an 11.7% decrease.
Total Value Locked(TVL)
Throughout this year, there has been a prevailing bearish sentiment in the market. The Total Value Locked (TVL) of Ronin experienced a downward trend starting from January. However, since mid-October, the TVL has been supported by favorable trends in the broader crypto market, as well as increased activity from users involved in the gaming sector. As a result, the TVL of Ronin has shown a significant increase, rising from $49.8 million to $92.8 million as of November 30, representing a substantial growth rate of 86.3%.
Source: Ronin DeFi Data
However, it’s worth noting that Katana, Ronin’s native DEX, accounts for almost 100% of the entire TVL on Ronin. While the gaming sector has been thriving, there is room for improvement and growth in other areas to diversify and strengthen the Ronin ecosystem.
Gaming Stats
Daily Active Users(DAU)
Since July 2023, Footprint Analytics reports that more than 80% of the total active users on Ronin are involved in the gaming sector.
The DAU in Ronin’s gaming sector closely mirrors the overall trend on the platform. With the addition of Pixels in November, there was a significant surge in DAU. From July to October, the average number of active users was 14.3K, but in November, it jumped to 79.8K, marking a remarkable 458.0% increase.
Source: Ronin Chain Key Stats
Daily Transactions
From August to November, the gaming sector accounted for over 80% of the total transactions on Ronin, compared to 74.7% in July.
The trend of daily transactions in the gaming sector of Ronin reflects the overall trend of total daily transactions on the network. Starting from mid-October, the daily transactions have been on an upward trajectory. The number of daily transactions increased from 40.1K and surpassed 100.0K, reaching a peak of 226.1K on November 22.
Source: Ronin Chain Key Stats
Games
Axie Infinity
From July to October 2023, Axie Infinity, the flagship game on Ronin, consistently contributed over 80% of the DAU on the platform. However, with the onboarding of Pixels to Ronin, the ratio of Axie Infinity users reached an all-time low of 9.12% on November 18. Despite this decrease, Axie Infinity maintained a stable daily active user count of around 15.0K.
Pixels
After landing on Ronin, Pixels quickly established itself as another flagship game, capturing over 70% of the active daily users on the chain. Starting from November 6, the daily active users of Pixels began to increase steadily. The game reached its peak on November 19, with a ratio of 83.6% of DAU on Ronin, amounting to an impressive 111.7K users.
The gaming sector is at the heart of Ronin’s ecosystem, prominently featuring Axie Infinity as its cornerstone. The integration of Pixels into Ronin has enriched the platform’s diversity and enhanced its attractiveness. The rapid expansion of Pixels has served as a testament to developers, showcasing Ronin as an optimal environment for crafting Web3 gaming experiences.
In summary, Ronin’s current developments and performance data present a picture of steady growth, indicating its potential to be a significant blockchain platform for developers and gamers. With an emphasis on gaming, scalability, and the optimization of Web3 applications, Ronin is positioned to support an ecosystem that could lead to innovative and engaging gaming experiences beyond the success of Axie Infinity.
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What is Footprint Analytics?
Footprint Analytics is a blockchain data solutions provider. It leverages cutting-edge AI technology to help analysts, builders, and investors turn blockchain data and combine Web2 data into insights with accessible visualization tools and a powerful multi-chain API across 20+ chains for NFTs, GameFi, and DeFi.
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