Blockchain games secured nearly $990m in April alone, a new record

The
blockchain
gaming
sector
witnessed
an
unprecedented
influx
of
investment
capital
in
April,
securing
$988
million
in
funding.

Although
the
first
quarter
of
2024
saw
a
cautious
approach
with
a
total
of
$288
million
raised
among

blockchain
gaming
startups,
the
beginning
of
the
second
quarter
signaled
a
new
shift
in
the
investors’
sentiment.

According
to

data
compiled
by
DappRadar,
April
witnessed
an
“unprecedented
influx
of
capital”
into
the
web3
gaming
sector
at
$988
million,
setting
a
new
record
since
January
2021.
DappRadar
blockchain
analyst
Sara
Gherghelas
noted
that
the
investment
surge
in
April
“has
already
exceeded
the
entire
second
quarter
of
2023,
which
was
the
best-performing
period
of
that
year
with
$973
million.”

“This
influx
of
capital
comes
at
a
critical
time
for
the
gaming
industry,
which
has
experienced
considerable
turbulence,
including
20,000
layoffs
over
the
past
eighteen
months.”

Sara
Gherghelas

Gherghelas
pointed
out
that
89%
of
the
funds
were
directed
towards
investment
firms,
7%
supported
infrastructure,
and
5%
went
to
web3
games.
A
significant
highlight
of
this
investment
wave
was
a
$600
million
games
fund
launched
by
Andreessen
Horowitz
(a16z)
as
part
of
a
larger
$7.2
billion
fundraising
effort.

DappRadar
emphasized
that
the
latest
fund
continues
a16z’s
“commitment
to
the
gaming
sector,
totaling
$1.2
billion
dedicated
solely
to
gaming
ventures
since
their
initial
$600
million
raised
in
May
2022.”

In
Q1,
the
sector

secured
$288
million
in
funding
in
Q1,
marking
a
57%
decrease
compared
to
Q4
2023.
At
the
time,
DappRadar
said
the
focus
of
those
investments
was
largely
on
web3
games
and
infrastructure,
highlighting
a
period
of
“foundational
building
aimed
at
enriching
the
web3
gaming
ecosystem.”