Blockchain games secured nearly $990m in April alone, a new record

The blockchain gaming sector witnessed an unprecedented influx of investment capital in April, securing $988 million in funding.

Although the first quarter of 2024 saw a cautious approach with a total of $288 million raised among blockchain gaming startups, the beginning of the second quarter signaled a new shift in the investors’ sentiment.

According to data compiled by DappRadar, April witnessed an “unprecedented influx of capital” into the web3 gaming sector at $988 million, setting a new record since January 2021. DappRadar blockchain analyst Sara Gherghelas noted that the investment surge in April “has already exceeded the entire second quarter of 2023, which was the best-performing period of that year with $973 million.”

“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

Gherghelas pointed out that 89% of the funds were directed towards investment firms, 7% supported infrastructure, and 5% went to web3 games. A significant highlight of this investment wave was a $600 million games fund launched by Andreessen Horowitz (a16z) as part of a larger $7.2 billion fundraising effort.

DappRadar emphasized that the latest fund continues a16z’s “commitment to the gaming sector, totaling $1.2 billion dedicated solely to gaming ventures since their initial $600 million raised in May 2022.”

In Q1, the sector secured $288 million in funding in Q1, marking a 57% decrease compared to Q4 2023. At the time, DappRadar said the focus of those investments was largely on web3 games and infrastructure, highlighting a period of “foundational building aimed at enriching the web3 gaming ecosystem.”