The New Dapps Report has switched its focus to GameStop, analyzing the company’s performance since crossing over to Web3 on July 11th 2022.
Formerly the world’s biggest video games retailer, GameStop has reinvented itself as an NFT gaming marketplace.
In a fiercely competitive market, GameStop currently retains a top ten position, according to the New Dapps Report.
As of August 2022, GameStop is ranked as the 9th largest NFT marketplace with a total trading volume of $6,387,516.
Moreover, GameStop’s best day in business was on the second day after its launch, when its trading volume reached an accumulated $2 million.
Overall, the total trading volume for the platform is just over $22 million, 58% of which was earned in the first trading month of July.
In total, GameStop has earned an estimated $496,506 since its launch.
OpenSea leads the pack
Make no mistake, the lion’s share of this market is with OpenSea.
Indeed, OpenSea boasts a daily trading volume of $10 million and an average of 33,474 unique traders on the marketplace.
Although it’s early days in GameStop’s tenure, they are currently lagging well behind OpenSea with 21,878 unique traders in total.
Amongst other competitors, Magic Eden controls 7% of the total market share with GameStop currently assuming 0.7% of the organic NFT sales.
Just above GameStop in the pack is NBA Top Shot, who commanded a total volume of $6,752,696 in August – 5% higher than GameStop.
Despite GameStop’s focus on NFT gaming, which is a growing market, the launch of GameStop had unfortunate timing.
During that time, Coinbase, Warner Brothers and Disney all launched their own NFT marketplaces – perhaps taking the shine off GameStop’s entry into the Web3 space.
Controversy bad for business
As indicated in the New Dapps Report, a bit of bad publicity may have hindered GameStop’s progress thus far.
In July, GameStop had trouble with a bogus NFT, which turned out to be a photoshopped version of a famous photograph.
The NFT was sold multiple times and reached a price of 5 ETH / $7,492, before being pulled from the marketplace.
What is more, another collection was caught selling unlicensed work and was removed after significant backlash from the community.
In terms of being a new player in the space, these events did GameStop no favours.
Social awareness and engagement
GameStop created a Twitter account in March 2022 and the profile currently has 84,933 followers, with 40% of its followers gained in May.
Since May, the average daily growth has declined to 142 new followers in the last 30 days. Indeed, this trend follows the same pattern as GameStop’s number of traders, which have also slumped recently.
Putting all this in context is important, and the general growth of the NFT market has fallen off a cliff in recent times.
In fact, NFT market trading volume slumped by 85% in August, compared to its peak of $5.7 billion in January.
The Terra Luna debacle and consequent depreciation of Bitcoin can’t be discounted in this analysis.
Certainly, these events have caused an enormous ripple effect in the market and contributed to an overall waning appetite for NFTs.
Collections and trading
GameStop’s flagship NFT collection in the last 30 days is GMERICA 1, with a total volume of 664 ETH or $996,000.
Currently, the collection’s floor price is 0.11 ETH or $165, with five different types of NFTs and a total of 532.
By contrast, a newly minted collection on OpenSea called ‘RENGA’ has a floor price of 0.84 ETH, a volume of 2700 ETH, and a total supply of 6900 assets in the collection.
As highlighted by the New Dapps Report, GameStop needs to find ways to attract prominent creators to the marketplace.
Tweaks to be made
As it stands today, despite its sleek design, GameStop is missing a few key features.
Namely, the buyers need to be able to filter and sort individual assets within the collection and filter different collections based on their performance.
At present, the sorting tools are rather limited in comparison to many of its competitors.
Additionally, GameStop would also benefit from tracking the trading performance and statistical support for many collections.
Statistics such as the average price, the trading history of an NFT, and the historical progression of a floor price would be welcomed by users, according to the New Dapps Report.
Furthermore, links to Etherscan for a given collection, or links to socials, are currently missing for most collections on GameStop.
Without these features, it will be hard for GameStop to attract the necessary talent to sell on its platform.
Banking on blockchain gaming
Despite its stuttering start, GameStop can still make inroads in the blockchain gaming space.
After all, it has been estimated that the industry could reach a $50 billion valuation in the next three years.
Therefore, GameStop is well positioned to capitalize if it can make the necessary adjustments as highlighted in the New Dapps Report.