By James Davis
Funding in Crypto Gaming in the Third Quarter
According to a report from crypto analytics company DappRadar, venture capitalists poured a whopping $550 million into the blockchain gaming sector last quarter. The investment came at a time when the broader crypto market was experiencing a downturn.
The figure, however, represents a 37.8% decline from the $972 million worth of investment that the crypto analytics firm reported in the second quarter. Since the start of the year, Web3 gaming firms have received over $2.2 billion in venture capital. While the year is not over yet, the $2.3 billion is just 25% of the funding raised in 2022.
2023 has largely been a tough year for both Web2 and Web3 game studios. Last month, a GamesIndustry report indicated that more than 6,000 people have lost their jobs since January. Big traditional gaming players like Team17, Epic Games, and Telltale Games have announced layoffs in the past months. Moreover, crypto-gaming firms like Yuga Labs and Star Atlas Studio ATMTA have also sent home a couple of their employees.
Web3 Gaming Startups Received More Funding, DappRadar Reports
Meanwhile, DappRadar says most of the blockchain gaming funding in the third quarter was channeled to startups. This is a clear indication that venture capitalists will likely continue being the primary source of funds for Web3 gaming companies that are just getting started.
According to the DappRadar report, startups received $263 million, while established crypto-gaming companies were given $213 million to build metaverse games.
How Did Major Web3 Games Perform Last Quarter?
The top performer in the third quarter was Axie Infinity. The crypto-gaming project recorded an NFT trading volume of over $90 million between July and September. Still, this figure is over 50% lower than what Axie Infinity recorded in the same period in 2021 before the gaming platform got hacked for $620 million in 2022.
Gods Unchained, a popular NFT trading card game, came in second with a trading volume of $55.5 million.
Some Web3 analysts are convinced that Axie Infinity will not dominate the crypto gaming sector when most-awaited games like Shrapnel, MapleStory Universe, Parallel, and Deadrop are launched.