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MedAvail Holdings (OTC:MDVLQ) Stock, Option Chain

MedAvail Holdings Inc is a telehealth-enabled pharmacy technology company. It operates in two segments: Retail Pharmacy Services and Pharmacy Technology. It generates the majority of revenue from the Retail Pharmacy Services segment, which is into operating SpotRx, a full-service retail pharmacy utilizing MedAvail's automated pharmacy technology, primarily servicing Medicare patients in the United States. The Pharmacy Technology segment develops and commercializes the MedCenter for direct sale or lease to third-party customers.

MEDAVAIL HOLDINGS INC by MedAvail Holdings, Inc.

MedAvail Holdings Inc

Leerink Partners analyst David Risinger upgrades AbbVie (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) from Market Perform to Outperform and announces $206 price target.

News

Upgrades

Price Target

Analyst Ratings

ABBV

Leerink Partners Upgrades AbbVie to Outperform, Announces $206 Price Target

B of A Securities analyst Tyler DuPont initiates coverage on Kyndryl Hldgs (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KD#NYSE">KD</a>) with a Buy rating and announces Price Target of $40.

Initiation

B of A Securities Initiates Coverage On Kyndryl Hldgs with Buy Rating, Announces Price Target of $40

WIIM

INTU

Intuit shares are trading lower after the company reported Q2 financial results. The company issued Q2 adjusted EPS and revenue guidance below analyst estimates.

B of A Securities analyst Tyler DuPont initiates coverage on Endava (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DAVA#NYSE">DAVA</a>) with a Neutral rating and announces Price Target of $29.

DAVA

B of A Securities Initiates Coverage On Endava with Neutral Rating, Announces Price Target of $29

Empire Petroleum Increases Revolver Loan Facility With Equity Bank To $20M In Support Of Strategic Growth Initiatives; Currently, Empire Has Approximately $8.4M Borrowed On The $20.0 Million Facility

JP Morgan analyst Bennett Moore initiates coverage on Carpenter Tech (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRS#NYSE">CRS</a>) with a Overweight rating and announces Price Target of $220.

JP Morgan Initiates Coverage On Carpenter Tech with Overweight Rating, Announces Price Target of $220

JMP Securities analyst Matthew Carletti maintains Hippo Holdings (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HIPO#NYSE">HIPO</a>) with a Market Outperform and raises the price target from $25 to $35.

HIPO

JMP Securities Maintains Market Outperform on Hippo Holdings, Raises Price Target to $35

B of A Securities analyst Sachin Salgaonkar downgrades Grab Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GRAB#NASDAQ">GRAB</a>) from Buy to Underperform and maintains the price target from $4.9 to $4.9.

Downgrades

GRAB

B of A Securities Downgrades Grab Holdings to Underperform, Maintains Price Target to $4.9

APi Group Corporation Says Kevin Krumm, Chief Financial Officer, Will Step Down From His Role On December 13; David Jackola, Current Chief Financial Officer And Vice President Of Transformation At APi International, Will Assume The Role Of Interim Chief Financial Officer

JMP Securities analyst Nicholas Jones maintains CarGurus (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CARG#NASDAQ">CARG</a>) with a Market Outperform and raises the price target from $41 to $46.

CARG

JMP Securities Maintains Market Outperform on CarGurus, Raises Price Target to $46

Baird analyst Shrenik Kothari upgrades Elastic (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESTC#NYSE">ESTC</a>) from Neutral to Outperform and raises the price target from $95 to $135.

ESTC

Baird Upgrades Elastic to Outperform, Raises Price Target to $135

<ul>
<li>In October 2020, YmAbs announced a plan to commercialize Omburtamab but failed to get FDA approval for it.</li>
<li>Despite lacking sufficient evidence and not meeting the FDA's requirements, Y-mAbs submitted an application to commercialize Omburtamab.&nbsp;</li>
<li>In October 2022, the FDA's committee unanimously voted against granting the license for Omburtamab.&nbsp;</li>
<li>The market reacted sharply to the news, with Y-mAbs stock plunging to a historic low of $3.15 by the end of October 2022.</li>
<li>Following the sudden stock price drop, in January 2023, shareholders sued the company.</li>
<li>Y-mAbs has agreed to a $19.65 million settlement with shareholders to resolve the lawsuit. Affected investors can now <a href="https://11thestate.com/cases/ymabs-investor-settlement">file a claim</a> to receive their payment.</li>
</ul>
<h3 class="wp-block-heading has-medium-font-size">Overview</h3>
Y-mAbs Therapeutics (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YMAB#NASDAQ">YMAB</a>) stock peaked at $54.1 in late 2020, fueled by high hopes for its cancer treatment, Omburtamab. However, the FDA's 2020 Refusal to File and subsequent Complete Response Letter citing missing efficacy data undermined its progress, leading to a 71.65% stock drop by October 2022. After that, in January 2023, investors filed a class-action lawsuit, claiming that the company misled them about Omburtamab's approval chances. Recently, Y-mAbs ultimately reached a $19.65 million settlement with the affected shareholders to resolve this scandal.&nbsp;

<h3 class="wp-block-heading has-medium-font-size">Omburtamab &#8211; The Achilles' Heel For Y-mAbs Ambitions</h3>

Y-mAbs Therapeutics, founded in 2015, quickly positioned itself as a promising player in the oncology field, focusing on developing novel antibody-based therapies.
Its flagship drug, Omburtamab, was designed to target central nervous system and leptomeningeal metastases in pediatric neuroblastoma patients.&nbsp;
Y-mAbs aimed to commercialize Omburtamab, promoting it as a breakthrough treatment for children suffering from one of the deadliest forms of cancer.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<cite>"We are excited to share these results that significantly broaden the potential reach of Omburtamab, which would be addressing a clear unmet medical need. The results pave the way for our multicenter phase 2 study in DIPG later this year, where we expect to give up to three repeated doses of Omburtamab," stated Thomas Gad, founder, Chairman and President.</cite></blockquote>
After its IPO, Y-mAbs stock surged 58% in 2020, peaking at $54 as investors expressed strong confidence in its future plans.
Then, on October 3, 2022, Y-mAbs <a href="https://ir.ymabs.com/news-releases/news-release-details/y-mabs-announces-pivotal-data-omburtamab">claimed</a> that the research data for Omburtamab trials was satisfactory. They remained confident that they would meet the additional data requirements requested by the FDA.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<cite>"The disease burden these patients and their families are facing represents a significant unmet medical need, which we hope to be able to address with OMBLASTYS after our PDUFA date on November 30, 2022."</cite></blockquote>
However, despite high claims from Gad, Y-mAbs couldn't convince the FDA to start commercial production of Omburtmab.

<h3 class="wp-block-heading has-medium-font-size">The FDA Shatters The Omburtamab Venture</h3>
The FDA dashed any remaining hopes for Omburtamab&#8217;s viability when it issued a Complete Response Letter.
In response, Thomas Gad said: 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<cite>"We are disappointed by the CRL but not surprised based on the outcome of the ODAC meeting on October 28. We want to express our gratitude to all the patients, their families, and investigators who have participated in our clinical trials and advocated for the advancement of Omburtamab."</cite></blockquote>
The fallout from Omburtamab became even more devastating with the FDA&#8217;s detailed response. Y-mAbs failed to address the FDA's concerns over the lack of viability and efficacy in the patient trial data, which were required before submitting the BLA in March 2022. This oversight complicated the situation further as the company neglected to meet the FDA&#8217;s demands for more diversified data and larger testing volumes.
After that, on October 5, 2020, Y-mAbs provided an update on Omburtamab, downplaying any significant obstacles to receiving the BLA.&nbsp;
"We will request a Type A meeting with the FDA as soon as possible, and plan to work in close dialog with the Agency to amend the BLA with the goal of resubmitting the BLA before the end of 2020" stated the press release from Y-mAbs.
However, the company couldn't convince the FDA through a series of meetings and resubmissions.
Investors' confidence in Y-mAbs suffered a serious blow in October 2022 when the FDA, after months of review, ultimately <a href="https://ir.ymabs.com/news-releases/news-release-details/y-mabs-announces-complete-response-letter-omburtamab-biologics">rejected</a> the company&#8217;s Biologics License Application for Omburtamab.
This rejection revealed that the FDA had raised substantial concerns regarding the drug's efficacy, particularly due to gaps in the data used to support its intended application in treating CNS/leptomeningeal metastases.
The day after the FDA revelations, Y-mAbs stock dropped 19.16%, eventually hitting a historic low of $3.10.
<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfYWbefph28Jr40WvJHQmhs1_dLhpfkW_flTnHFf3fdm6_AdGwTFg112rNGhiteRLX2Lhn0mR_yGJ_Hlw7O0JY3dOETNalwF69FJOpMs1tvFrEGYgVSCmHtsgSgo1WDwD4UOTEBPA?key=uQ4PIB59WNO670EWBObXCpjS" alt="" style="width:624px" /><figcaption class="wp-element-caption">Y-mAbs Stock Price Falls &#8211; October 26, 2022</figcaption></figure>
After that, on January 18, 2023, investors sued Y-mAbs for misleading about the FDA approval.
Resolving The Case
To resolve the lawsuit from investors, Y-mAbs has agreed to a cash settlement of $19.65 million. If you invested in Y-mAbs, you may be eligible to <a href="https://11thestate.com/cases/ymabs-investor-settlement">claim a portion</a> of this settlement to recover your losses.
After the setback with Omburtamab, Y-mAbs shifted its focus to &#8220;Danyelza,&#8221; an FDA-approved drug as of 2023, aiming to stabilize operations. The company implemented a restructuring plan, cutting expenses by 28% and its salesforce by 35%, while projecting $60–65 million in net revenue from Danyelza sales. While these efforts improved its financial standing, the recovery relied more on cost-cutting than significant revenue growth. The stock, however, never recovered to its 2020 peak of $54 and, by November 2024, had fallen nearly 80%, trading at just $11.

Biotech

General

YMAB

Y-mAbs' Omburtamab Failure: The Critical Turning Point And $19.65M Shareholder Settlement

This decision follows the receipt of a "deficiencies preclude discussion" letter from the U.S. Food and Drug Administration (FDA) regarding the Company's New Drug Application (NDA) for Zynquista&#x2122; (sotagliflozin) as an adjunct to insulin therapy for glycemic control in adults with type 1 diabetes and chronic kidney disease (CKD). The letter noted deficiencies with the application that preclude discussion of labeling and/or post-marketing requirements and commitments at this time.
"While this decision was not made lightly, it reflects our commitment to make prudent business decisions that enhance value across our portfolio and deliver on our Lead to Succeed strategy," said Mike Exton, Ph.D., Lexicon's chief executive officer and director. "We see significant potential in our strong pipeline of R&amp;D opportunities, and we will focus our resources on programs with the potential for the greatest impact. We are confident that by carefully selecting therapeutic areas where we are the first and only therapy in class, and focusing our R&amp;D efforts where there are significant needs, we can deliver innovations that will meaningfully benefit patients while simultaneously positioning Lexicon to fully realize future growth opportunities."

LXRX

Lexicon Pharmaceuticals Says Company Has Made Strategic Decision To Eliminate Its Commercial Operations And Rationalize Resources Across All Functions In Order To Preserve Cash And Focus Its Resources On Advancing Promising Clinical Development Pipeline Following Regulatory Update From FDA; Efforts Expected To Reduce 2025 Operating Costs By $100M

Baird analyst Jeffrey Meuler upgrades Bright Horizons Family (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BFAM#NYSE">BFAM</a>) from Neutral to Outperform and maintains the price target from $140 to $140.

BFAM

Baird Upgrades Bright Horizons Family to Outperform, Maintains Price Target to $140

Baird analyst Jeffrey Meuler upgrades KinderCare Learning (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KLC#NYSE">KLC</a>) from Neutral to Outperform and maintains the price target from $30 to $30.

Baird Upgrades KinderCare Learning to Outperform, Maintains Price Target to $30

The Germany commercial property market "<a href="https://open.substack.com/pub/europeancapitalinsights/p/germanys-commercial-real-estate-market?r=3nmatg&amp;utm_campaign=post&amp;utm_medium=web">remains a source of elevated risk</a>," one that financial regulators are monitoring closely after a rapid succession of interest rate increases hit property values.
"The financial system is facing acute challenges due to geopolitical tensions and a weak economy," Michael Theurer, an Executive Board member of the Deutsche Bundesbank, <a target="_blank" rel="noreferrer noopener" href="https://www.bundesbank.de/en/press/speeches/statement-on-the-publication-of-the-financial-stability-review-2024-on-21-november-2024-944842">said </a>on Thursday. "This is making supervisors more vigilant, particularly with regard to the commercial real estate sector."
The European Central Bank (ECB) hiked interest rates in 2022 as the eurozone witnessed an "<a href="https://www.ecb.europa.eu/press/blog/date/2024/html/ecb.blog240311~968c707650.en.html" target="_blank" rel="noreferrer noopener">extraordinary surge</a>" in inflation fueled by the energy crisis from Russia's invasion of Ukraine. Even though the ECB began lowering rates this year, cutting from 4.5% to 3.4%, German commercial property developers remain at risk, according to the Bundesbank.
"Higher interest rates and energy prices caused a number of risks to emerge," Theurer said. &#8220;Real estate prices fell and credit risk rose."
<figure class="wp-block-image is-resized"><a href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F22ac4199-cbac-4639-8efa-4a64abe78cf8_566x312.png" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F22ac4199-cbac-4639-8efa-4a64abe78cf8_566x312.png" alt="" style="width:624px" /></a><figcaption class="wp-element-caption">Source: <a target="_blank" rel="noreferrer noopener" href="https://www.bundesbank.de/en/press/speeches/statement-on-the-publication-of-the-financial-stability-review-2024-on-21-november-2024-944842#tar-1">Bundesbank</a></figcaption></figure>
The <a target="_blank" rel="noreferrer noopener" href="https://www.boerse-frankfurt.de/indices/daxsubsector-all-real-estate-performance">DAX subsector All Real Estate</a> has declined to its lowest level since August 16. It traded at €159.11 at CET 11:30 today. The country's biggest landlord by market volume, Vonovia <a target="_blank" rel="noreferrer noopener" href="https://www.reuters.com/markets/companies/VNAn.DE">(VNAn.DE)</a>, dropped <a target="_blank" rel="noreferrer noopener" href="https://www.boerse-frankfurt.de/indices/daxsubsector-all-real-estate-performance/constituents">44% during the past three years</a>, despite rising 16% in the past year.&nbsp;
<h3 class="wp-block-heading">German Financial System ‘Weathered' High Rates</h3>
The German financial system has "weathered the phase of exceptionally strong rises in interest rates well overall," he said. "The resilience of the banking system is adequate thanks to high capital reserves. Vulnerabilities are declining, but only gradually."&nbsp;
But conditions in the commercial property market are influencing German open-end retail real estate funds, according to the Bundesbank.&nbsp;
"As a rule, such funds have high liquidity risk," Theurer said. "Most recently they have seen net outflows, with investors anticipating higher returns on alternative investments. This could accentuate negative developments in commercial real estate."
<figure class="wp-block-image is-resized"><a href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76ac9770-ac19-4188-a738-efff1cfae3fa_577x313.png" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F76ac9770-ac19-4188-a738-efff1cfae3fa_577x313.png" alt="" style="width:624px" /></a><figcaption class="wp-element-caption">Source: Bundesbank</figcaption></figure>
Given the overall risk, <a target="_blank" rel="noreferrer noopener" href="https://www.bnnbloomberg.ca/business/company-news/2024/11/21/bundesbank-vigilant-on-commercial-property-in-weak-economy/">a package of additional capital buffers</a> that regulators ordered banks to build up in 2022 "remains appropriate."&nbsp;
<h3 class="wp-block-heading">German Economic ‘Malaise' Shows No Signs Of Improving</h3>
In the meantime, Germany's "economic malaise" showed no signs of improving, according to a <a target="_blank" rel="noreferrer noopener" href="https://www.pmi.spglobal.com/Public/Home/PressRelease/501260501cab4cb382c5ec521210a125">survey</a> compiled by S&amp;P Global. The latest HCOB ‘flash' PMI&#xAE; survey showed business activity in November falling for the fifth month running and at the quickest rate since February.
The first decrease in services activity for nine months compounded a "sustained weakness in manufacturing production," the survey said today. Weaker demand for goods and services led to further job losses during the year's penultimate month, it said.&nbsp;
"Until recently, the German economy was stabilized somewhat by the service sector, which was making up for the steep decline in manufacturing," Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said. "Not anymore,"
As a result, German gross domestic product (GDP) contracted an annual 0.3% in Q3, Federal Statistical Office (Destatis) <a target="_blank" rel="noreferrer noopener" href="https://www.destatis.de/EN/Press/2024/11/PE24_438_811.html">data showed</a> today. GDP rose quarterly by 0.1% in Q3, though growth was revised 0.1 percentage points lower from<a target="_blank" rel="noreferrer noopener" href="https://www.destatis.de/EN/Press/2024/10/PE24_408_811.html"> its October 30</a> forecast.
<figure class="wp-block-image is-resized"><a href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F2740fa69-29bf-41ee-b71b-4d6542df9722_1151x291.png" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F2740fa69-29bf-41ee-b71b-4d6542df9722_1151x291.png" alt="" style="width:624px" /></a><figcaption class="wp-element-caption">Source: <a target="_blank" rel="noreferrer noopener" href="https://www.destatis.de/EN/Press/2024/11/PE24_438_811.html">Destatis</a></figcaption></figure>
<h3 class="wp-block-heading">German Economy Hurt By Domestic Political Turmoil</h3>
While German officials regularly point to trade tensions and geopolitical risks, domestic political turmoil has weighed on economic growth. Political uncertainty since the announcement of snap elections "isn&#8217;t helping," Rubia said.&nbsp;
Chancellor Olaf Scholz's<a target="_blank" rel="noreferrer noopener" href="https://europeancapitalinsights.substack.com/p/german-coalition-collapse-leaves"> coalition government collapsed </a>earlier this month after weeks of government squabbling about the ailing economy. Until early elections on <a target="_blank" rel="noreferrer noopener" href="https://www.cnbc.com/2024/11/12/germany-sets-election-date-for-february-after-ruling-coalition-collapse.html?msockid=2d606d947ad16d223dd779537bd86c37">February 23</a>, the European nation will be politically rudderless.&nbsp;&nbsp;
Amid the weak German economy, corporate insolvencies have "risen significantly," according to the Bundesbank. Insolvencies among trading companies are particularly high – totaling over €7 billion as of the end of June 2024.
<figure class="wp-block-image is-resized"><a href="https://substackcdn.com/image/fetch/f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F05c53b75-7b3a-4255-81d9-fb950e07e161_571x317.png" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://substackcdn.com/image/fetch/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F05c53b75-7b3a-4255-81d9-fb950e07e161_571x317.png" alt="" style="width:624px" /></a><figcaption class="wp-element-caption">Source: <a target="_blank" rel="noreferrer noopener" href="https://www.bundesbank.de/en/press/speeches/statement-on-the-publication-of-the-financial-stability-review-2024-on-21-november-2024-944842">Bundesbank</a></figcaption></figure>
Insolvency claims against the services sector and against the real estate activities sector are somewhat lower. They are nevertheless "substantial"&nbsp;at €5.5 billion and roughly €6.5 billion, respectively, according to the Bundesbank.&nbsp;
"The path ahead is an arduous one," Theurer said. "Geopolitical tensions continue to harbor risks to the future stability of the financial system."
Disclaimer
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.
This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content&nbsp;or&nbsp;accuracy.

Eurozone

Economics

Markets

German Commercial Property Market Is 'Source Of Elevated Risk'

Key highlights:
<ul>
<li>The FORESEE trial achieved its primary endpoint, demonstrating that CNSide influenced treatment decisions in over 90% of cases evaluated, surpassing the predetermined 20% primary endpoint target</li>
<li>CNSide demonstrated enhanced sensitivity in detecting tumor cells (80%) vs. CSF cytology (29%) in patients with LM</li>
<li>CNSide identified actionable mutations in the CSF, such as HER2 amplification, influencing 24% of therapeutic selection decisions</li>
<li>CNSide exhibited high specificity, with no tumor cells detected in patients without LM</li>
<li>CNSide demonstrated improved Negative Predictive Value in ruling out LM (25%) vs. CSF cytology (10%)</li>
<li>CNSide revealed HER2 positivity in LM tumors in 60% of breast cancer patients with HER2-negative primary tumors, informing physician treatment strategies</li>
</ul>

PSTV

Plus Therapeutics Subsidiary CNSide Diagnostics To Present Data From FORESEE Trial AT SNO Meeting; CNSide Cerebrospinal Fluid Assay Met Key Primary And Secondary Endpoints

Honeywell Says It Has Agreed To Sell Its Personal Protective Equipment Business To Protective Industrial Products, Inc, A Portfolio Company Of Odyssey Investment Partners, For $1.325B In An All-cash Transaction

JMP Securities analyst Patrick Walravens maintains BlackLine (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BL#NASDAQ">BL</a>) with a Market Outperform and raises the price target from $81 to $86.

JMP Securities Maintains Market Outperform on BlackLine, Raises Price Target to $86

If you are a gamer, you are probably playing on a console like X Box. Three main players – Sony Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SONY#NYSE">SONY</a>), Nintendo and Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) &#8212; control that market.  Then there are the newcomers. They operate in the blockchain universe: the so-called Web3 games.  Analysts estimate Web3 gaming&#8217;s market size at <a href="https://www.futuremarketinsights.com/reports/web3-gaming-market">$23.9 billion</a>, about half the size of the console gaming market.
Investors have an upside here, however. Market analysts forecast Web3 gaming compound annual growth rates (CAGR) somewhere between 18.7% to 30%. Console gaming CAGR: 4.8%.
Web3 gaming taps into the cryptocurrency, decentralized blockchain hype. That is what separates them from traditional video games. In the most bullish case, the market could hit $133 billion by 2030. Analysts expect the console gaming market size to reach around <a href="https://virtuemarketresearch.com/report/web3-gaming-market">$73 billion</a> in 2027.
These forecasts might be why <a href="https://venturebeat.com/games/sony-group-and-startale-unveil-soneium-blockchain-to-accelerate-web3-innovation/">Sony is building a blockchain</a> called Soneium to support Web3 games. No word yet on rivals Microsoft and Nintendo doing the same.
"Our goal is to make Web3 games as enjoyable as the ones you play on your Xbox, but with less hassle. Browser games are more versatile; you can play them on your TV by connecting your laptop, and you can take them with you when you travel," said Riccardo Sibani, Chief Product Officer at <a href="https://www.myneighboralice.com/">My Neighbor Alice</a>, a blockchain-based game.
Web3 games are similar to traditional PC games in some ways. Some key differences are:
<ul>
<li>Wallet Connection: Most Web3 games require a cryptocurrency wallet to play. It acts as your identity and stores any in-game assets or tokens in <a href="https://www.benzinga.com/money/best-play-to-earn-crypto-games">play-to-earn games</a>.</li>
<li>Browser-based: Many Web3 games are browser-based, allowing gamers to play directly in a web browser after connecting a wallet.</li>
<li>Downloadable Clients: Complex Web3 games often require users to download a dedicated game client, similar to traditional online games. Australia-based Illuvium (<a href="https://www.benzinga.com/quote/ILV-USD">ILV</a>) is an example of this type. ILV is down considerably year-to-date.</li>
</ul>
They also differ from console games and traditional PC games as they allow for in-game transactions, which means players can buy "assets" like non-fungible tokens (NFTs). Recent market shifts destroyed these asset values from an investor standpoint.
NFT trading volumes fell by 61% from $3.1 billion to $1.2 billion dollars, <a href="https://www.coingecko.com/en/nft/global-stats">based on CoinGecko data</a>. NFT <a href="https://en.cryptonomist.ch/2024/06/06/galaxy-tokenizes-the-violin-to-obtain-a-loan-but-the-volume-of-nft-sales-collapses/" target="_blank" rel="noreferrer noopener">loan</a> volumes dropped by around 74% to $284 million. The fortunes of Web3 gaming tie many NFTs to their success. This segment of the digital assets market has not recovered from its 2021 highs <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41763299/trump-themed-cryptos-nfts-surge-in-expectations-of-former-presidents-victory-coin-inspired">despite recent gains</a>.
"A fully decentralized game, unlike console games, cannot just disappear. You keep the ownership of the items you bought, and they can be used in different games and decentralized applications," said Sibani, comparing Web3 in-game purchases to those one makes to upgrade console games that are usually not transferable to new versions of the same game. "Some major NFT collections are usable across various games. That level of interoperability is unheard of in traditional games," he said.
Paul Thomas, founder of the blockchain project <a href="https://somnia.network/">Somnia&nbsp;</a>–- a blockchain geared towards Web3 gaming and other applications &#8212; said that despite the bear market, Web3 games are getting better and the user base is growing.
"Critics say that it's time to start giving people high-quality games they can't put down, and games that they would play without the financial incentives in play-to-earn models," he said. "I think those incentives should just be an added bonus, not the main reason you're playing the game. We are seeing this shift happening already. Look at <a href="https://piratenation.game/">Pirate Nation</a> (<a href="https://coinmarketcap.com/currencies/pirate-nation/">PIRATE</a>), Parallel,or <a href="https://gameoffthegrid.com/">Off the Grid</a> &#8212; they all are engaging games that have kept people hooked. They attracted players, not just cryptocurrency speculators," he said.&nbsp;
<h3 class="wp-block-heading">Blockchain Gaming Growth Stories and Newcomers</h3>
Web3 gaming ranked fifth in the digital asset markets for venture capital raised in 2024, <a href="https://www.rootdata.com/dashboard">according</a> to RootData.
The gaming sector has attracted some $580 million in investments, ending in the third quarter. Blockchain games have about <a href="https://dappradar.com/blog/blockchain-gaming-reaches-new-record-4-2-million-daily-active-users">4.2 million</a> daily active users as of August, according to a <a href="https://cryptoslate.com/companies/dappradar/">DappRadar</a>&nbsp;report.
Gamer blockchain Ronin (<a href="https://coinmarketcap.com/currencies/ronin/">RON</a>) leads this space based on unique active wallets, thanks to super popular games like its flagship game Axie Infinity (<a href="https://www.benzinga.com/quote/AXS-USD">AXS</a>) and now Pixels.
(See Benzinga interview with Pixels founder <a href="https://www.benzinga.com/markets/cryptocurrency/24/02/37252915/exclusive-pixels-web3-gaming-revolution-luke-barwikowski-tells-all">here</a>.)
Pixels <a href="https://xangle.io/en/research/detail/1443">reportedly</a> hit <a href="https://ilogos.biz/the-state-of-web3-gaming-market-trends-opportunities-development-insights/">over 1 million daily active users</a> (DAUs) for the first time in May, although this number has since fallen to around 725,000 DAUs.
"I'm excited about games like Shrapnel (SHRAP), <a href="https://www.unioverse.com/">Unioverse</a> (a first-of-its-kind composable IP-as-a-service platform), and <a href="https://www.iconx.world/">IconX</a>(ICNX), with their tokenized game management layer for e-sports," said Alex Casassovici, CEO and Founder of <a href="https://www.azarus.io/">Azarus</a>, a&nbsp; San Francisco-based blockchain gaming and live streaming platform.
He also mentioned Off the Grid, which is traditionally a console and PC game made by Gunzilla Games out of Frankfurt. The third-person shooter game recently launched a Web3 version on Epic Store and hit 900,000 concurrent users.
"If they maintain that momentum, they could help bring Web3 gaming mainstream," Casassovici said.
Gunzilla is privately held. Accredited investors can potentially invest in Gunzilla Games through platforms like EquityZen, which offers pre-IPO shares.
Web3 is a growth story.
"Gamers are everywhere.&nbsp; Many haven't made the jump to Web3 gaming yet," said Sibani.
<h3 class="wp-block-heading">Web3 Gaming Hype and the "Degens" that Ruin Markets</h3>
The sector is a victim of its own hype. Investors have paid the price. Timing is everything in these alt-coins, which have moved wildly thanks to what the crypto market refers to as "degens".
The degens, or "degenerates" to put it bluntly, refers to the player or investor who speculates on blockchain-based games and platform tokens. They often invest heavily in new or unproven games and build up their hype. There's tons of pump and dump. That trade has killed the sector as an investment theme, and made it roulette wheel.
"There is good reason for the criticism of this market. Web3 games have been built to generate yield, not fun. They attract people looking for quick gains, but then it all crashes when the hype dies down, and users disappear," said Casassovici.
With Azarus and Stream, "It's not about players buying from each other to pump up items," Casassovici said. "Our Watch, Play, and Earn model is about creating value from activities people already enjoy, then sharing it with stakeholders. No wash trading; no market manipulation."
Thomas from Somnia predicts 2025 will see Web3 games breaking out of their primarily Web3 gamer audience and will attract more of the traditional console and PC gamer.
"Web3 has a really bad rep from console and PC players, especially in the U.S.," Thomas said. "People have a misconception that everything in Web3 is play-to-earn or is just there to exploit cryptocurrency traders. Now we are seeing a lot more games where those Web3 components are optional or hidden unless the player wants to find them. I think that this subtle introduction will work to get more gamers familiar with Web3 and realize that it&#8217;s basically just Steam (a digital distribution platform for PC games developed by Valve Corporation) with better fees and more freedom," said Thomas. "You have major game streamers like <a href="https://www.twitch.tv/shroud/videos">Shroud</a> talking about blockchain when he is playing Off the Grid," he said. "We are seeing the changes develop." 
&#x2A;The writer of this article is an investor in the Decentraland token.

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