Blockchain Gaming Funding Falls 71% as Deal Count Rises
The blockchain gaming sector saw a significant decline in investment during the first quarter of 2025, with total funding dropping by 71% compared to Q4 2024 and 68% from Q1 2024. According to DappRadar's State of Blockchain Gaming report, Web3 gaming projects raised $91 million in Q1 2025.
This decline stands in contrast to the 35% increase in deal count during the same period, suggesting that investors are adopting a more measured approach. DappRadar analyst Sara Gherghelas noted that while investors are writing smaller checks, they're still actively engaging with a broader range of projects.
The report also highlighted a significant redirection of investment capital away from gaming-specific blockchain applications and toward real-world assets and artificial intelligence applications. Infrastructure development dominated the investment landscape in Q1, with projects focused on scalable gaming architecture receiving the lion's share of available funding.