- Investments into blockchain gaming projects dropped by 38% in Q3 to stand at $600 million
- Web3 gaming projects have however received over $2 billion so far this year
- Investors are majorly putting money in firms investing in the various aspects of the blockchain gaming world
The slump in the crypto and blockchain world has affected the amount of funds invested in web3 gaming projects in Q3 of 2023. According to DappRadar, the investment amounts have declined by 38% to $600 million compared to Q2 2023 when roughly $900 was poured into the sector. The total amount invested in such projects so far this year is slightly above $2 billion which is also a huge drop compared to a similar period last year, a sign that investors are either losing interest in blockchain games or they’re withholding their funds until the industry recovers from the prolonged crypto winter.
Gaming Activity Up 12%
Titled “State of Blockchain Gaming in Q3 2023,” the report by DappRadar disclosed that 43.6%, 35.5% and 20.8% of the $600 million went to investment firms focusing on blockchain gaming projects, direct investments to metaverse and web3 games and infrastructure supporting decentralized games, respectively.
Hot off the press, our State of Blockchain Gaming in Q3 2023 report is out! 📃
Daily UAWs for gaming projects rose by 12% to an average of 786,766. Gaming projects also attracted $600M in investment over the same period. 📈
Full report👇https://t.co/1rmQWd6uUT @BGameAlliance
— DappRadar Insights (@InsightsByDR) October 12, 2023
DappRadar noted that while the over $2 billion raised by gaming projects so far this year is “just 30% of the funds pooled last year,” 2023 has “distinct market dynamics” contributing to the decline.
Despite investments into the space taking a hit, gaming activities increased by 12% to “an average of 786,766 daily Unique Active Wallets” compared to Q2 2023.
Alien Worlds and Wax Take the Lead
The most played game in Q3 was Alien Worlds while Axie Infinity was among the top games with the highest transaction volume at $90 million. The top gaming blockchains in Q3 were Wax, Solana and BNB Chain in that order.
Although investments into the blockchain gaming space have dropped, investors pouring more money into investment firms focusing on blockchain games is a sign that venture capital firms are willing to back more gaming startups in the future.
