Despite the challenges of the bear market, the blockchain gaming industry has remained resilient, raising $2.3 billion so far in 2023. That’s according to a recent report by DappRadar. However, this figure represents a 30% decrease from the $3.3 billion raised in 2022.
- In the report, decentralized apps tracking platform DappsRadar offered a quarterly breakdown of the investment received by the gaming sector in 2023.
- The sector netted $739 million in the first quarter, $973 million in the second quarter, and $600 million in the third quarter.
- The report also provided comparison between the third quarter of 2022 and that of 2023.
- It found that funding for the gaming sector fell by 50% in the third quarter of 2023 from $1.2 billion in the same period last year.
- In its investment overview, DappsRadar showed that $213 million was invested in metaverse-related games and technology, and the rest of the funds were invested in Web3 gaming infrastructure and investment firms.
- The report read:
“This quarter witnessed Web3 gaming projects amassing a notable $600 million, propelling the year’s tally to $2.3 billion. While this constitutes just 30% of the funds pooled last year, it’s essential to keep in perspective the distinct market dynamics of 2023.”
Be smart: Play-to-earn games are blockchain-based video games that reward players with cryptocurrency or other digital assets for playing.
Why this matters
- Play-to-earn gaming has experienced a significant decline in popularity since the crypto winter.
- Some industry players have taken a step back from the market, describing it as shaky and unstable. Multinational video game company Sega pulled back from blockchain gaming in June 2023.
- Sega’s co-Chief Operating Officer Shuji Utsumi simply described the gaming experience as “boring” and pointless.
- Nigerian-based crypto venture studio Nestcoin spun off its gaming project Metaverse Magna (MVM) as an independent entity to keep it afloat after FTX collapsed.
- According to MVM’s CEO, Yemi Johnson, crypto gaming is still viable, but the previous models were flawed and built with a poor understanding of the nature and needs of the market.