The blockchain gaming sector faced a rough start to the year as venture capital deals fell nearly 60%, totaling $288 million, indicating caution among investors.
Developers in the blockchain gaming industry are facing a mix of caution and optimism, as indicated by a decline in venture capital deals compared to previous quarters. According data According to data collected by DappRadar, the sector obtained $288 million in financing in the first quarter, which represents a decrease of 57% compared to the fourth quarter of 2023.
“The focus of these investments has largely been on web3 infrastructure and gaming. “This surely highlights a period of foundation building aimed at enriching the web3 gaming ecosystem.”
Sara Gherghelas, blockchain analyst at DappRadar
The analyst noted that only two notable deals shaped the investment landscape during the period: Parallel Studios and Gunzilla Games.
In March, Parallel Studios raised $35 million in funding, with support from Distributed Global, The Operating Group, VanEck, Solana Ventures, Base Ecosystem Fund, and Amber, among others. Although the developers did not provide specific details on how they intend to use the profits, it appears that the studio is aiming to expand its presence across multiple platforms, with the Epic Games Store gaming marketplace a key milestone for the expansion.
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Gunzilla Games also raised $30 million for its next project, Off the Grid, a free-to-play battle royale game. The investment, co-led by CoinFund and Avalanche's Blizzard Fund, also aims to expand the game across multiple gaming platforms, including Sony PlayStation, Microsoft's Xbox, and PC.
Despite investors' caution, the influx of investments in the development of new games and technological advances “shows that there is a lot of hope for the future,” Gherhelas said.
