Ronin Network: Recovering from the Hack to Lead the GameFi Wave

The spectacular recovery of Ronin, the blockchain network of Axie Infinity, is an inspiring story about the power of resilience and adaptation. After the devastating blow of a $625 million hack in 2022, Ronin has risen stronger, leading the GameFi wave and attracting attention from both investors and gamers alike.

What challenges did Ronin Network face?

1. Decline in users and transactions

Within a year, the Daily Active Users (DAU) and daily transactions on Ronin decreased by 96.7% and 94.1% respectively. This was a result of several factors, including:

• The Ronin Bridge hack: This severely impacted user trust in the Ronin ecosystem.
• The decline of Axie Infinity: The flagship game on Ronin, Axie Infinity, faced issues with over-farming and game item rebalancing. This made the game less attractive to players.

2. Bear market and the failure of other projects:

It’s clear that the bear market, game decline, and the $625 million hack were incredibly challenging for Ronin. If they faced this situation, 99% of projects would have shut down, wouldn’t they? However, Ronin rose stronger. That’s extraordinary! So, what did they do to recover?

What did Ronin Network do to recover?

1. Strategic partnerships with new games

Ronin attracted prominent games like Apeiron and Pixels to move from other platforms to Ronin. These games brought a significant influx of new users, strengthening the network’s activity. The launch of Apeiron in December 2023 resulted in a spike in daily transactions, rising from 370,000 to 7.5 million in a single day.

2. Increased NFT market activity

NFT trading volume on Mavis Market – the official marketplace of Sky Mavis – surged from $215,000 in December 2023 to $6.775 million in May 2024. This reflects a significant increase in NFT buying and selling, contributing to Ronin’s overall activity.

3. Game development support

Ronin implemented programs like Ronin Forge, Axie Builder’s Program, and Mavis Hub Greenlight to support new game developers. These programs provide technical documentation, support from the Sky Mavis team, and even financial funding, making it easier for new projects to develop and succeed on Ronin.

4. Capital raising and financial support

The Ronin Launchpad helped games like Apeiron successfully raise capital, with over $3 million from more than 11,500 participants in a single event. This not only provided financial support but also motivated game development on Ronin.

5. Expansion of the game ecosystem

Ronin has continuously expanded its ecosystem by welcoming new games like Ragnarok: Monster World, Lumiterra, and Forgotten Runiverse. These games not only diversify content but also attract large numbers of new players, contributing to Ronin’s recovery.

6. Strategic shift

Ronin has shifted its strategy to reach both Web2 and Web3 gamers. By bridging the gap between traditional gamers and Web3 gamers, Ronin has expanded its potential market. This helps Ronin tap into new player demographics and drive strong growth. In reality, games currently developing on Ronin are generally captivating and require investment. While they may not be comparable to high-level traditional games, they are sufficient to satisfy the pure gaming needs of users.

Comparison table of Ronin before and after recovery

Metric	Before Recovery	After Recovery	Growth
Daily Active Users (DAU)	311,200 (January 2022)	10,300 (January 2023)	Decrease of 96.7%
Daily transactions	972,000 (January 2022)	57,200 (January 2023)	Decrease of 94.1%
NFT trading volume on Mavis Market	$215,000 (December 2023)	$6.775 million (May 2024)	Increase of 3074%
Number of games	Primarily Axie Infinity	Diversified with Apeiron, Pixels, Ragnarok: Monster World, Lumiterra, Forgotten Runiverse, etc.	Significant Increase
Support Programs	None	Ronin Forge, Axie Builder’s Program, Mavis Hub Greenlight, etc.	Expanded
Capital raising	None	Ronin Launchpad supports game capital raising	New
Market reach	Primarily Web3 gamers	Reaching both Web2 and Web3 gamers	Expanded

Note: This table only represents a part of the significant changes made by Ronin. For a more comprehensive understanding, refer to the Messari report.

Observation

Ronin’s story is a testament to the fact that adaptation and resilience are key to success. They have proven that even in the face of the biggest setbacks, like the $625 million hack, it is possible to rise up and lead. Ronin’s approach to attracting new games, expanding its ecosystem, and investing in the development of its gaming community has created a successful model for other blockchain projects. No matter the market volatility, Ronin Network has demonstrated that GameFi remains a field full of potential, attracting the interest of investors and gamers alike.

Conclusion

The success of Ronin Network in the GameFi and NFT space, amidst the current market conditions and the failure of socialfi, shows that GameFi remains a critical option to attract and retain users in this market.

It’s clear that Ronin’s recovery is a testament to the power of adaptation and resilience. They have proven that even when facing the biggest challenges, it’s possible to rise and lead.

Note: This article summarizes key information from the Messari report. For a more complete understanding of Ronin, please read the full report!