The blockchain gaming industry posted mixed results in the first quarter of 2025. While the number of deals surged, the total capital raised saw a steep decline.
Web3 gaming ventures raised $91 million during Q1, reflecting a 71% decrease from the previous quarter and a 68% decline compared to Q1 2024, as per the latest State of Blockchain Gaming report by DappRadar.
DappRadar analyst Sara Gherghelas attributed the funding decline to persistent macroeconomic pressures and emphasized the uncertain road ahead for emerging gaming startups.
“Without a turnaround in market conditions, this year could pose even greater challenges,” she noted.
Blockchain Gaming Deals Increase 35% Despite Slump in Funding
Though total funding fell, investor interest remained active, with the number of closed deals rising 35% quarter-over-quarter.
According to Gherghelas, the trend reflects a more conservative strategy among investors — opting for smaller, diversified investments rather than large-scale bets.
She pointed out that the majority of capital flowed into infrastructure projects within the blockchain gaming sector, signaling confidence in long-term ecosystem growth.
Among the quarter’s most prominent funding rounds were those by South Korea’s MARBLEX and Dubai-based The Game Company.
MARBLEX, part of Netmarble, launched a Semi-Publishing Model supported by a $20 million fund created in collaboration with Immutable.
The Game Company secured $10 million in funding to develop a blockchain-based cloud gaming service designed to make games playable across all devices.
Web3 Gaming Faces Industry Headwinds
In March, the Arbitrum DAO voted to withdraw funding from its gaming ecosystem initiative, citing poor execution and transparency.
The decision reflects a wider struggle for blockchain gaming projects amid tougher market conditions.
ZKsync, for instance, recently ended its liquidity incentives due to weakening demand.
However, the sector did record promising growth in user activity earlier in the year. In January alone, blockchain gaming hit over 7 million daily unique active wallets — a 386% year-over-year jump.
OpBNB led as the top-performing gaming chain, with Matchain in second place. Polygon also saw a 100% spike in gaming activity from the previous month.
Telegram continues to emerge as a strategic platform for Web3 gaming, accounting for 21% of new game launches in 2024. Game7’s 2024 Web3 Gaming report highlighted the platform’s increasing importance for user growth and engagement.
