Cryptocurrency and gambling advertisements and campaigns are among the most expensive ways of onboarding new users. According to recent data, these methods are especially expensive when reaching existing crypto wallets, ranking higher compared to other sectors in the crypto industry.

According to the data, decentralized finance (DeFi) and centralized finance (CeFi) advertisements are better and more cost-effective in terms of reaching existing users in the crypto sector compared to gaming and gambling campaigns. In a recent post on X, Axie Infinity co-founder Jeff “JiHo” Zirlin replied to an article posted by the co-founder of Web3 marketing firm Addressable Asaf Nadler, who highlighted the figures behind such campaigns.

“Gaming and gambling campaigns are the most expensive, with a median CPW of $8.74 and a lower quartile of $3.40,” Nadler said. CPW, or cost per wallet is a perfect metric for measurement because it tracks the cost of website visitors who already have a crypto wallet installed in their browser.

Axie Infinity co-founder gives insight into the discussion

According to Nadler’s post, he mentioned that the high cost-to-return ratio of crypto gaming and gambling might be down to the higher churn, speculative behavior, and intense competition. “If Web3 gaming is truly ‘inevitable,’ we need to find a more powerful UA engine to make it as sustainable as in Web2,” Nadler said.

However, the Axie Infinity executive mentioned that the best periods to carry out experiments are the ones with a high CPW. Comparing the amount of money it takes to onboard users, he said, “Basically, the amount of money it costs to onboard someone into web3 increases during bear markets and decreases during bulls. This was the case for every single region tested, except for Southeast Asia. This is likely why we have a stable and consistent user base but our growth outside of our initial markets is pretty cyclical.”

This is some interesting research.

Basically, the amount of money it costs to onboard someone into web3 increases during bear markets and decreases during bulls.

This was the case for every single region tested, except for Southeast Asia.

This is likely why we have a stable…

— Jihoz.ron 🍚 (@Jihoz_Axie) April 12, 2025

The Axie Infinity co-founder also revealed the best time to make an experiment in the market, noting that it is during a period of high CPW. “During times when cost per wallet acquisition is high, it’s a good time to experiment, create new games/product lines, consolidate our market share, and get ready for the next market expansion,” he added.

Nadler highlights the difference between bull and bear markets

Meanwhile, according to Nadler’s report, it is easier for campaigns in the CeFi and DeFi sectors to onboard new crypto users. “DeFi/CeFi campaigns are the most cost-efficient, with a median CPW of $2.79 and a lower quartile of just $0.10,” he said. The results are based on about 200 programmatic campaigns carried out on Addressable by more than 70 advertisers, who claimed to target about 9.5 million users globally. It tracks how CPW varies across different market cycles, campaign strategies, audience segments, and regions.

According to Nadler, while premium markets experience low-cost conversions for existing crypto wallet holders during bull runs, it has always been increasingly difficult to attract their attention during bear markets. He mentioned that in 2024, the United States and Western Europe saw CPW rise by four times and 27 times, respectively, between the first quarter and third quarter. This happened as the market consolidated and interest from crypto holders started to drop.

“While these markets provide scale and quality during bull runs, they become significantly more expensive when sentiment turns bearish, making them less sustainable during downturns,” he said. Meanwhile, markets classed under “emerging” countries like Latin America and Eastern Europe offer very low CPW in good conditions but can also experience extreme cost volatility.

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