Who is Helika:
Helika is a leading analytics platform empowering top Web3 game developers such as Maplestory, Ubisoft, Yuga Labs, Parallel and more to make data-driven decisions that enhance player engagement, retention, and monetization. Our data and data analysts provide actionable insights and help studios to optimize and improve their gameplay mechanics.
Helika's analytics empowers game developers to optimize metrics like ARPU and ARPPU, which this report examines in-depth for the evolving Web3 gaming ecosystem
https://www.gminsights.com/industry-analysis/web3-gaming-market
The Web3 Gaming Market was valued at USD 26.38 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) exceeding 19.2% from 2024 to 2032. CAGR offers a clear and concise measure of expected growth over a multi-year period, smoothing out annual fluctuations to provide a consistent rate of growth.
In addition web3 game studios generated $3.64 billion in revenue from in-game NFTs in 2022, with projections of a 33.5% annual growth rate reaching $15.46 billion by 2027, driven by the rise of NFT-integrated games and a growing player base.
In the Global Web3 Gamer Study by Coda labs in 2022 reported that Web3 gamers are “62% more likely to spend money in-game.” Additionally, web3 gamers are more likely than web2 gamers to purchase things such as in-game currency, level-ups and cosmetics. During the 2024 India Blockchain Week it was reported that “Web3 gamers spend nearly double what traditional gamers do: $220 versus $120 annually.”
Web3 games significantly outperform traditional Web2 games in monetization metrics like ARPU and ARPPU due to their ability to foster higher spending behavior among players. This can be attributed to blockchain-enabled features such as NFT ownership, tokenized rewards, and decentralized economies, which enhance player engagement and create additional spending incentives.
Supported by findings that Web3 gamers are more likely to spend in-game and nearly double their annual expenditure compared to traditional gamers, this report hypothesizes that the integration of Web3 mechanics directly contributes to superior monetization performance in Web3 gaming.
This report looks into Average Revenue per User (ARPU) and Average Revenue per Paying User (ARPPU) data specific to Web3 gaming in 2024.
We look into how these metrics reflect the unique challenges and opportunities of blockchain-enabled games. With the rise of tokenized economies, play-to-earn models, and decentralized player ownership, Web3 games are redefining how developers generate revenue and sustain engagement.
Understanding monetization metrics like ARPU and ARPPU serve as important benchmarks for developers to evaluate how well their games monetize with their players and also how to play their user acquisition (UA) strategy.
At Helika, we have aggregated data on 3.3 million Web3 gamers in 2024. Our reports provide a comprehensive view of Helika's own internal Web3 gaming landscape. Please note this may not be reflective of the entire industry as a whole.
We have aggregated data across many data points such:
1. Royalties received from NFT
2. NFT’s bought, sold or traded
3. in-game item purchases
4. Sales volume
5. Total revenue generated from on-chain activities.
Disclaimer: We would like to note that the data from this report are Helika’s partners and will vary depending on many different factors. The Web3 game benchmarks presented in this report are not directly scalable to their Web2 counterparts. The ARPU and ARPPU figures for Web3 games reflect average per-player values and may not fully capture variations in player behavior, monetization strategies, or specific game economies. Unfortunately due to confidentiality agreements, we will not be able to specifically name the games but have aggregated the data into genres. In addition, genres with limited or insignificant data were excluded to ensure the accuracy and relevance of our findings. Finally, this report is based on Helika’s internal data from tracked games and may vary significantly depending on the specific revenue model and mechanics of each game. As such, the findings may not fully represent the broader Web3 gaming industry.
This report primarily focuses on the Southeast Asian market, which may result in ARPU/ARPPU figures that differ significantly from other regions.
When researching AppTweak, we analyzed the top five grossing Web2 mobile games across the action, RPG, strategy, and casual game categories. Since there was no specific TCG (Trading Card Game) category, we included the following five games in our analysis: Hearthstone, Marvel Snap, Yu-Gi-Oh! Duel Links, Clash Royale, and Pokemon TCG Pocket. The analysis covered data from the Philippines, Thailand, Vietnam, Malaysia, and Indonesia for the period between December 11, 2023, and December 11, 2024. We calculated the average ARPU (Average Revenue Per User) by dividing the total estimated revenue by the total number of estimated downloads during this period.
We concentrated primarily on obtaining the total estimated downloads and revenue data for the Southeast Asia (SE Asia) market, because this region is popular with many Web3 gamers.
For instance, Axie Infinity during its popularity reported that 40% of their players were from the Philippines. In another instance, Pixels has been reported that 17.99% of their players are from the Philippines, 9.13% from Thailand, 8.98% from Indonesia, and 4.05% from Vietnam, accounting for a total of 40.15% from SE Asia.
Disclaimer: We note that the ARPU of web2 mobile games from higher-income countries, such as the US, is likely to be significantly higher than the figures presented in this report. In addition, web2 games have traditionally only been able to monetize from in-app purchases (IAP) and In-app ads (IAA) which will be a main reason for the large differences in the ARPU and ARPPU shown in this report. Web2 benchmarks are estimates derived from our research and variations in data accuracy and methodology may affect direct comparisons.
While there are many more game genres in Web3 gaming, this report focuses on only five—RPG, Action, Casual, TCG, and Strategy because these are the only genres that Helika has significant aggregated data to report. In addition, Research has shown that approximately 65% of Web3 games are:
1. Role-Playing Games (RPGs): 20%
2. Casual Games: 17%
3. Action Games: 14%
4. Strategy Games: 14%
Web2 developers traditionally have only been able to monetize their players through in-app purchases, in-app ads or subscriptions. Web3 games unlock diverse and innovative revenue streams through tokenization, reward mechanisms, receiving NFT royalties, staking fees, dynamic tokenomics, NFT minting, and other blockchain-enabled features.
By understanding ARPU and ARPPU, developers can refine their user acquisition campaigns and adjust gameplay mechanics to retain high-value players.
1. Monetization of Web3 Players: ARPU & ARPPU demonstrates how well developers are monetizing their player base across diverse methods, including NFT sales, token staking, and on-chain transactions.
2. Identifying High-Value Players: ARPPU helps developers understand the spending behavior of paying users, critical in Web3 games where "whales" often contribute significantly to the economy.
3. Game Economy Health: Both metrics reveal the balance between free-to-play players and paying players, offering insights into how well tokenized assets and monetization mechanics resonate with users.
ARPU and ARPPU are important metrics for user acquisition (UA) in media buying because they directly impact how you evaluate and optimize the effectiveness and profitability of your campaigns. Here's why they matter:
When media buying, understanding ARPU and ARPPU helps you set cost-per-install (CPI) or cost-per-acquisition (CPA) goals. For example, if your ARPU is $5, you may set a CPI target of $3 to ensure a positive ROAS.
ARPPU can identify segments of users who spend more, enabling targeted campaigns for acquiring high-value users. For example, ads to specific audiences or segments of audiences may result in targeting users who are more likely to pay for items (e.g. buy gaming NFTs) in the game compared to running UA campaigns on channels where users are less likely to become a paying user.
By knowing ARPU, you can estimate revenue growth and predict the time it takes to recoup your acquisition costs (payback period).
With ARPPU, you can model the impact of acquiring more high-paying users and forecast future revenue at scale.
High ARPU or ARPPU may justify spending more on UA campaigns because you know that the LTV of the user will be higher than your UA costs. When the revenue generated by a user throughout their lifetime exceeds the cost of acquiring them, the campaign is deemed profitable.
Understanding these metrics allows you to benchmark against competitors in the same space. If your ARPU or ARPPU is higher, you can afford to spend more on acquisition and outbid competitors for the same audience.
Imagine you're running a campaign with a target cost-per-install (CPI) of $2. If your ARPU (Average Revenue Per User) is $4, you’re earning $4 per user on average, giving you a $2 profit for every user you acquire.
Now, consider ARPPU (Average Revenue Per Paying User). If your ARPPU is $20, but only 10% of users make purchases, it’s clear that your revenue heavily depends on converting the right users into paying players. To maximize profitability, you can focus your budget on acquiring player from channels with a higher likelihood of producing paying players.
More importantly, improving your in-game monetization mechanics can increase how much paying users spend, further boosting overall revenue.
In this section, we analyze the Average Revenue Per User (ARPU) for Web3 games across the Helika platform. Unlike traditional Web2 games, which primarily monetize through in-app purchases (IAP), in-app advertising (IAA), subscriptions, or paid versions, Web3 games introduce additional and diverse revenue streams. Due to tokens’ programmability, Web3 games can introduce additional layers on how they monetize and reward their users, including NFT royalties, marketplace fees (for games operating their own marketplaces), staking fees, tokenomics, NFT minting, and more.
These additional layers make calculating ARPU in Web3 gaming more complicated compared to Web2. This highlights the multi-faceted monetization strategies in the Web3 gaming ecosystem and the evolving nature of these metrics.
Web3 games stand out by offering utility for in-game items beyond the game itself—whether it's the speculative value of NFTs or the ability to engage in DeFi activities such as staking, which further enhances player "stickiness" and engagement within the ecosystem. Unlike Web2 games, where the game loop is the core focus. Web3 players are motivated to participate and invest in rare NFTs for both gameplay benefits and speculative value.
For developers, this Web3 monetization strategies enhances retention and engagement by encouraging players to stay active and maximize their rewards. By aligning player incentives with monetization opportunities like marketplace fees and NFT royalties, Web3 games create a sustainable ecosystem that benefits both users and developers.
ARPPU (Average Revenue Per Paying User) measures the average amount of revenue generated by players who make purchases within a game. Unlike ARPU, which accounts for all users, ARPPU focuses exclusively on the paying segment, providing insights into spending behavior and monetization effectiveness among active spenders. This metric is crucial for understanding how well a game monetizes its most valuable users.
Web3 games are unique because they actively incentivize users to play and engage with the ecosystem. Unlike traditional Web2 players who often drop off at monetization points, many Web3 users are used to engaging with tokens already - paying gas fees to take action within ecosystems. To these players, there's a much lower mental barrier when it comes to spending tokens as they understand that there are multiple ways in which they will be rewarded for their spend.
For example, when games offer NFTs that provide additional rewards based on their rarity, Web3 players often purchase these NFTs, not just for gameplay benefits but also for the potential to speculate and earn even greater rewards in the future. This behavior underscores the distinct engagement and monetization dynamics within the Web3 gaming ecosystem.
There is a large difference in the ARPPU for Web3 games compared to web2 games. The Web2 ARPPU figures are based on data from gameanalytics.com
Top 2% Quantile:
Top 5% Quantile:
Median 50% Quantile:
A quantile divides a dataset into equal parts, helping to analyze distribution and variability within the data. For example:
1. The 2% quantile represents the top 2% of performers, highlighting the highest achievers in the dataset.
2. The 5% quantile includes the top 5%, offering a slightly broader view of high-performing data points.
3. The median (50% quantile) marks the midpoint, representing the typical or average performance, where half the data points fall above and half below.
The 2024 Web2 ARPPU data from GameAnalytics.com for the Southeast Asia region covers genres such as Action, Strategy, RPG, and Casual (TCG data is unavailable) and focuses on the 2% and 5% quantiles. These top-performing quantiles represent "rare" levels of achievement that require exceptional effort, resources, and optimization to reach. While these figures highlight the best-in-class benchmarks, they do not necessarily reflect broader industry trends or the average game performance.
To provide additional context, a screenshot of the median (50% quantile) is included for comparison, showcasing the significant percentage differences in ARPPU the top performers and the average performers for web2 games. These quantile insights are invaluable for setting benchmarks, identifying trends, and refining strategies to optimize game performance and monetization.
The examples provided are generalized scenarios and may not apply uniformly across all Web3 games. Developers should adapt strategies to fit their unique game economies
Maximizing ARPU and ARPPU in Web3 games requires leveraging the unique features of blockchain, tokenomics, and community-driven ecosystems. Here are actionable tips:
Direct Revenue Control: Operate your own in-game marketplace (eg: ProofofPlay Marketplace for Pirate Nation, etc ) to earn royalties and transaction fees on every trade involving NFTs, on-chain items and token swaps.
Enhanced Player Experience: Provide players with a secure, game-integrated platform for trading assets.
Marketplace Incentives: Encourage trading activity with promotions, discounts, or rewards tied to marketplace transactions.
Transaction-Based Fees: Charge a small fee whenever players stake or unstake NFTs, either as a flat fee or a percentage of the transaction value.
Example: Charge a 1% fee for staking NFTs and a 2% fee for unstaking, with discounts for players who hold premium NFTs.
Scarcity Creation: Staking locks NFTs out of circulation, reducing supply and potentially driving up their value and royalties received in the secondary market or in your own marketplace.
Revenue from Payouts: take a small percentage of the rewards distributed in staking to create an additional revenue stream. This fee structure is commonly used in staking systems to cover operational costs and ensure sustainability.
Demand Creation: Tie your ecosystem’s native token to in-game features, upgrades, or marketplace transactions to create demand.
Example: Players stake NFTs to earn tokens required to craft rare in-game items, increasing demand and token value or introduce token-burning mechanics for entering special tournaments or events, reducing token supply and increasing scarcity
Rare and Dynamic NFTs: Offer limited-edition NFTs with unique utility, and allow players to upgrade NFTs through gameplay or purchases.
Secondary Market Royalties: Encourage active trading by introducing desirable NFT features, earning royalties on every sale.
Example: Players stake NFTs, reducing available supply and driving up prices on the secondary market.
Leaderboards and Challenges: Use competitive elements like leaderboards to encourage spending on upgrades and items.
Seasonal and Timed Events: Launch limited-time events with exclusive rewards tied to in-game purchases.
Play-to-Engage Campaigns: Reward players for sustained interaction with tokens or NFTs that unlock premium content.
Exclusive Access: Provide players who stake NFTs with access to premium areas, events, or mechanics, encouraging spending on complementary items.
Example: Staking NFTs unlocks exclusive dungeons, which require purchasing special gear to explore fully.
Progressive Monetization: Offer special bonuses or boosts for staked assets, incentivizing players to stake and spend more.
This approach capitalizes on the unique features of Web3 gaming, combining marketplaces, staking mechanics, and tokenomics to create a robust monetization ecosystem. By leveraging multiple revenue streams, developers can maximize both ARPU and ARPPU while fostering long-term player engagement and ecosystem growth.
Disclaimer
This report is provided by Helika for informational and educational purposes only. The insights and findings presented in this report are for general reference and should not be considered a substitute for legal, financial, or professional advice. The report does not account for the specific objectives, financial situations, or needs of any individual or organization. It is not intended to be an offer, solicitation, or recommendation to transact in any digital asset, NFT, or in-game currency mentioned within.
Redistribution, reproduction, or publication of this report without explicit written consent from Helika is prohibited. While we strive to present accurate and up-to-date information, this report is based on data and estimates from Helika’s internal analytics and third-party sources, which may be subject to change. Readers are encouraged to perform their own due diligence and consult with appropriate professionals before making decisions based on this report.
The data and analysis presented in this report are derived from Helika’s aggregated data and may not represent the entire Web3 gaming industry. In addition, Web2 benchmarks may vary depending on regional contexts and methodologies. As such, the findings and comparisons should be interpreted with caution and are not guaranteed to apply universally.
Helika, its affiliates, and its team may have professional relationships with the games or companies mentioned in this report. This report does not constitute financial advice or any guarantees of performance regarding specific games or platforms.
External links referenced in this report may direct readers to third-party websites. Helika is not responsible for the accuracy or completeness of information on these external sites, nor does it endorse their content. Any decisions made based on this report or related links are the sole responsibility of the reader.
