The blockchain gaming sector saw a notable increase in deal activity in early 2025 despite a significant decline in capital inflow.
According to DappRadar’s State of Blockchain Gaming report, Web3 gaming projects raised $91 million in the first quarter, representing a 71% decrease from the prior quarter and a 68% drop compared to last year. Analyst Sara Gherghelas highlighted that this downturn is mainly due to heightened investor caution in uncertain market conditions, especially concerning early-stage startups.
“The growing pressure on early-stage startups and hint that 2025 may prove more challenging than previous years,”
Gherghelas noted, warning that 2025 could bring greater hurdles for the sector unless broader economic trends improve.
Despite a funding dip, investor interest remains strong, with a 35% increase in closed deals quarter-over-quarter. Gherghelas noted that while investors are now writing smaller checks, they engage with various projects. This quarter’s key trend is a shift toward infrastructure-based investments, particularly in scalable gaming infrastructure, indicating sustained optimism for the long-term potential of Web3 gaming despite a more cautious approach to high-risk investments.
Among the quarter’s standout infrastructure investments was MARBLEX, the blockchain arm of South Korea’s Netmarble. The company announced a $20 million joint fund with Immutable to support its new Semi-Publishing Model — aimed at accelerating the development of diverse Web3 games.
Also making waves was Dubai-based The Game Company, which secured $10 million in funding on February 6 to advance its blockchain-powered cloud gaming platform. The technology promises to allow gamers to play any title on any device, expanding the reach of Web3 capabilities.
Gherghelas emphasized that as blockchain gaming evolves, the focus gradually shifts toward quality, interoperability, and innovation — including enhanced gameplay mechanics, identity integration, and AI-powered features.
In October 2024, a report from DappRadar revealed that Web3 gaming represented more than 26% of on-chain activity in Q3, driven by 4.4 million daily active wallets—a 21% rise in unique daily wallets compared to the previous quarter.
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