On-chain data reveals a noteworthy financial trend: in 2023, about 4,000 Ethereum wallets made a whopping $5 billion deposit into web3 casinos and gambling sites. The blockchain forensic company Chainalysis, situated in New York, made this discovery in a recent blog post.
Despite being few in number, high-frequency gamers are having a significant influence. Each of these players trades cryptocurrency for an average of $7,000. Chainalysis demonstrates that in 2023, about 500 whales, at a cost of about $25,000 apiece, transferred $320 million. This sharp contrast highlights the distinction between VIP clients and casual players.
Personal Wallets Dominate Casino Transactions
The majority of transactions on web3 casinos involve personal wallets. Chainalysis reports that most players cash in and out of their accounts through these wallets. The firm notes that many players also “send and receive funds from exchange accounts.” Specifically, deposits and withdrawals related to web3 casinos from personal wallets account for 61% and 70%, respectively, while crypto exchanges make up 38% and 29%.
Chainalysis points out that because many players do not hide their on-chain activities, businesses can analyze player behavior. Companies can gain insights into “player holdings, spending habits, and engagement across blockchain platforms.”
Over the past four years, web3 casinos have seen steady growth in inflows, amassing $78.7 billion in crypto. Despite this rapid expansion, Chainalysis warns of potential risks, stating that some platforms “could also be a vector for money laundering.”
This surge in cryptocurrency usage in web3 casinos underscores both the sector’s booming popularity and the regulatory challenges it faces. The significant financial involvement from a relatively small number of high-frequency players highlights the sector’s lucrative nature but also raises questions about transparency and legal compliance.
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