Web3 Gaming Continues to Garner Investor Attention Despite Bear Market – Here's the Latest
The recent Q3 2023 fundraising figure for Web3 gaming is certainly lower than the one seen in the previous quarter, but the overall situation is not that bad - investor attention is still there.
Crypto data firm DappRadar found that this year's third quarter "may have seemed tranquil on the surface, [but] the undercurrents in the blockchain industry were palpably active."
The report stated that,
"A notable trend was the fervent movement of Web2 giants making assertive strides into the Web3 realm."
Web3 gaming projects secured $600 million in Q3 2023, thus taking the total investments for 2023 to $2.3 billion, DappRadar found.
The fact is, however, that this number constitutes 30% of the funds seen in 2022. That said, DappRadar argues that one must keep in mind the distinct market dynamics rising this year.
It stated that,
"It's evident that stakeholders see substantial potential in the space. However, the fact that this only represents 30% of last year’s fundraising activity underscores the importance of considering external market conditions."
Major tech-focused VC firm A16z and its Speedrun accelerator have been mentioned as Q3's highlight, aiming to invest up to $75 million into pre-seed startups that blend gaming and the latest tech.
DappRadar further noted that this year's funding trend shows a "significant allocation" towards investment firms, which received $125 million, or 20.8%. Game/metaverse got $213 million (35.5%), and infrastructure $262 million (43.6%).
The report argued that,
"This underscores the confidence and commitment VCs hold for the future of this domain, signaling their readiness to back the forthcoming Web3 gaming sensations."
The blockchain gaming sector kept its position at the top in the decentralized
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