2023 has been a year of mixed results for the Web3 gaming industry. According to a DappRadar report, there was a 65% decrease in the number of blockchain games compared to the previous year.
Only 223 games were launched, down from 640 games in 2022 and 811 games in 2021. Yet, despite this setback, the industry is poised for a strong comeback in 2024 with several highly anticipated titles on the horizon.
Despite the decline in game numbers, the Web3 gaming industry has proven resilient and continues to attract investors. The Q3 2023 State of Blockchain Gaming report by DappRadar reveals a 12% increase in unique wallets since Q2 2023, with a substantial $600 million in venture capital funding flowing into Web3 games.
Furthermore, the report highlights the top five recipients of these funds for each quarter of the year, showcasing the industry’s ongoing potential and appeal.
In Q1, the gaming industry witnessed a remarkable flow of funds towards innovative ventures. The highest funding of $40 million was secured by CCP Games, an independent game developer renowned for leveraging blockchain technology within the EVE Universe.
Not far behind, Matchday, a FIFA-licensed soccer-centric Web3 mobile gaming company, obtained $21 million in seed funding, establishing a strong position in the industry.
Kratos Studios, an Indian Web3 gaming firm with the prestigious IndiGG DAO intellectual property, successfully raised $20 million in funding, demonstrating their potential for future growth. Additionally, Dimensionals, a gaming multiverse that brings together collectible heroes from diverse dimensions and is powered by Mino Games, attracted $15 million in a Series B funding round, ensuring further development and expansion.
Finally, Avalon, an extraordinary digital universe enabling gamers and creators alike to construct their own worlds, secured $13 million to fuel their vision.
This surge in funding reflects the industry’s enthusiasm for boundary-pushing concepts and highlights the immense potential for growth in the gaming sector.
In Q2, the gaming industry saw remarkable demonstration of financial growth. Mythical Games emerged as frontrunners, securing an astounding $37 million investment to enhance consumer adoption.
Meanwhile, both Pomerium and GOALS made their mark by acquiring noteworthy investments of $20 million each, thanks to angel investors and Series A funding. Notably, Pomerium distinguishes itself as a Play-to-earn (P2E) gaming platform that offers original in-house IP games.
Karate Combat, a Web3 martial arts game, also achieved a significant milestone in securing $18 million in funding. Likewise, RACA, a Web3 infrastructure provider, managed to raise $16 million to bolster its operations.
These successes highlight the flourishing nature of the gaming industry and the increasing interest in innovative gaming platforms and infrastructure providers.
In the third quarter, a handful of remarkable projects and firms stood out. Firstly, we have Proof of Play, a company that raised an impressive $33 million.
They are renowned for their Web3 Games Studio. Additionally, Pahdo Labs secured $15 million in Series A funding for their highly anticipated game, Halcyon Zero.
Not to be overlooked, Mahjong Meta made significant strides in the industry by raising $12 million. They specialize in an online competitive Web3 mahjong gaming platform. Furthermore, Age of Dino, a captivating MMO game built on the Xterio platform, received $8 million in Seed funding.
Lastly, MetaCene, a gaming firm dedicated to building a blockchain MMORPG universe, successfully secured $5 million in Seed funding.