In April, blockchain games made news when they got an amazing $988 million in investment, which was a new high point for the industry. This rise is very different from the cautious approach seen in the first quarter of 2024, when blockchain game companies only raised $288 million.
The data collected by DappRadar shows that the web3 game industry has grown at a speed that has never been seen before, even faster than the previous record set in January 2021.
Investments Surpass Q2 2023
A blockchain researcher at DappRadar named Sara Gherghelas said that April’s investment flow has already surpassed the entire second quarter of 2023, which saw $973 million in investments.
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
As Gherghelas broke down the investment distribution, he pointed out that 89% of the funds went to investment companies, 7% went to infrastructure, and 5% went straight to Web3 games. It’s worth noting that a major chunk of this capital surge came from Andreessen Horowitz’s (a16z) $600 million games fund, which was part of a major effort to raise $7.2 billion.
This new fund shows how committed a16z is to the gaming industry. Since they raised their first $600 million in May 2022, they have invested a total of $1.2 billion in gaming businesses.
Compared to Q4 2023, the first quarter did not do very well, with a 57% drop in sales. Most of the investments were made in web3 games and infrastructure. DappRadar pointed out that this time is a part of foundational building that is meant to strengthen the web3 gaming ecosystem.
