October 23, 2023
By Anjali Kochhar
In a surprising turn of events, blockchain gaming projects have managed to secure a whopping $2.3 billion in investments throughout the year 2023, defying the persistently bearish sentiment in the cryptocurrency market. This revelation comes courtesy of a report from DappRadar, a decentralised applications (DApp) tracking platform.
The report divulges that the first quarter of 2023 saw an impressive $739 million in investments, with the second and third quarters following suit with $973 million and $600 million, respectively. This collective influx of capital amounts to a staggering $2.3 billion investment surge in the blockchain gaming sector over the initial three quarters of 2023.
Diving into specifics, the third quarter of 2023 witnessed $213 million being allocated towards the development of metaverse-related games and technology. This move is especially notable in light of certain voices pronouncing the metaverse concept as defunct. The remaining investments in the same quarter were directed towards Web3 gaming infrastructure and investment firms, as per DappRadar’s findings.
However, it’s worth noting that while the investment figures are significant, this year’s funding for Web3 gaming is notably lower compared to the heights reached in 2022. Analysts at DappRadar point out that the funds raised this year represent only “30% of last year’s fundraising activity.”
To put this into perspective, the third quarter of 2022 witnessed an astonishing $1.2 billion invested in blockchain gaming. In contrast, the third quarter of 2023 recorded a substantial drop of approximately 50%, signalling a considerable decline in investments within the space.
Despite the decline in funding, these numbers underscore the continued belief and recognition of the enormous potential within the blockchain gaming sector. The resilience of these projects in attracting substantial investments amidst a generally subdued market sentiment is a testament to the enduring allure and promise of blockchain-based gaming ventures.
As the year progresses, industry experts will be closely watching to see if this trend holds and whether blockchain gaming will continue to be a lucrative field for investors and developers alike.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
