The beginning of the year was challenging for the blockchain gaming industry, with venture capital investments plummeting by almost 60% to around $288 million, suggesting that investors are exercising caution.
In the realm of blockchain gaming, developers are experiencing a blend of apprehension and anticipation. This is reflected in the decline of venture capital investments as shown by DappRadar’s figures. In the first quarter of 2024, the sector raised $288 million, representing a significant 57% decrease from the previous quarter.
“Most of these investments have gone toward web3 games and underlying technology. This indicates a significant phase of construction, intended to strengthen the web3 gaming community.”
Sara Gherghelas, a blockchain analyst at DappRadar
During the specified timeframe, just two exceptional deals significantly influenced the investment scene: Parallel Studios and Gunzilla Games.
In March, Parallel Studios managed to raise $35 million in investment from several backers including Distributed Global, The Operating Group, VanEck, Solana Ventures, Base Ecosystem Fund, and Amber. The exact use of the funds has not been disclosed by the developers yet. However, it seems that Parallel Studios is planning to increase its reach on multiple platforms, with the Epic Games Store being a significant target for growth.
Gunzilla Games secured $30 million in funding for their new project, Off the Grid – a free-to-play battle royale game. This investment, spearheaded by CoinFund and Avalanche’s Blizzard Fund, intends to broaden the game’s reach to various gaming platforms such as Sony PlayStation, Microsoft’s Xbox, and personal computers.
In spite of investors’ hesitance, the continuous flow of investments towards new gaming projects and technological innovations signifies a sense of optimism about the future, according to Gherhelas.
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2024-04-12 13:35