Despite ongoing challenges in the broader crypto and gaming markets, the blockchain gaming industry continues to thrive with substantial venture capital investment. A recent report by crypto data firm DappRadar reveals that blockchain games secured around $600 million in Q3 2023.
This figure, although slightly down by 38% from Q2 2023, brings the total funding for the year to approximately $2.3 billion. While 2023 isn’t over yet, this $2.3 billion already represents 30% of last year’s total.
In a challenging year for game studios, both in and outside the crypto space, over 6,100 jobs were lost across the gaming industry. This impacted well-known firms like Epic Games, Telltale Games, Team17, and even gaming-focused crypto companies like Star Atlas’ ATMTA and Yuga Labs’ Otherside.
DappRadar’s report indicates that a significant portion of funding in the crypto gaming sector is directed towards gaming-centric investment firms. This trend highlights that venture capitalists, along with their accelerators and funds, remain a vital source of startup capital for emerging blockchain game studios.
In Q3 2023, a substantial $262 million was allocated to investment firms, while $213 million went directly into game and metaverse projects. Additionally, $125 million was invested in blockchain gaming infrastructure.
Axie Infinity, a leading title in the blockchain gaming space, continued to shine with $90 million in NFT transaction volume during the past quarter. It maintained its dominance due to the ongoing development of highly-anticipated NFT games, such as Parallel, Shrapnel, Deadrop, and MapleStory Universe.
Despite challenges, the blockchain gaming scene remains vibrant, with initiatives like Axie Infinity’s rewarding players and ongoing esports activities. The industry’s resilience during tough times sets the stage for further evolution and innovation.
