Investment Surge in Web3 Gaming Projects
Investments in Web3 gaming initiatives jumped to $60 million in July, marking a turnaround after a three-month slowdown. According to blockchain analytics platform DappRadar, investors are now concentrating on games that prioritize enjoyment.
March remains the peak month for Web3 gaming funding this year at $69 million. Following a dip in April, May, and June, investment is flowing once more, “primarily to projects with proven teams, strong IP, or infrastructure supporting multiple games,” as stated by DappRadar analyst Sara Gherghelas in a report released on Thursday.
However, smaller studios are facing challenges, and projects lacking traction or sustainable economies are either shutting down or pivoting, according to Gherghelas.
Investors are also inclined to support games that emphasize fun first, incorporating optional blockchain features and back-end technology like wallets, artificial intelligence tools, and cross-chain systems, rather than treating them as an afterthought.
Gherghelas indicated that, in the near term, we can expect fewer but higher-quality Web3 game releases, cross-platform launches, and brand-driven titles aimed at capturing mainstream audiences.
Shifts in Investor Sentiment
In March, Sky Mavis co-founder Jeffrey Zirlin echoed a similar sentiment, informing Cointelegraph that crypto gaming investors are no longer naively pouring funds into “Axie killers” that do not meet expectations.
The term “Axie killers” was previously used to refer to gaming projects that claimed they were the next major player in Web3 gaming.
In April, DappRadar noted a decline in investor interest in Web3 gaming amid a shift towards real-world assets and AI.
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Nevertheless, Gherghelas mentioned that the market has now entered a more mature stage, concentrating on quality gameplay, sustainable economies, and scalable infrastructure.
Growth of Blockchain Gaming
Blockchain gaming recorded 4.9 million daily unique active wallets in July, a 2% increase from June, leading the decentralized app ecosystem.
According to Gherghelas, blockchain gaming was the only segment to experience increased activity last month, as industry leaders work to “hold their ground,” with top titles engaging players through significant updates.
“July demonstrated that Web3 gaming continues to gain momentum. While other sectors cooled, gaming not only maintained its position but expanded its audience, nearing five million monthly players,” she added.
