Crypto gaming experienced a mixed Q1, as deals soared but investment totals dropped, DappRadar reveals.
Investment in Web3 games dropped in Q1, though DappRadar noted a quarter-over-quarter increase in deals, with a focus on infrastructure development.
In the first quarter of 2025, blockchain gaming experienced a “mixed bag,” with more deals but a significant drop in investment, according to DappRadar.
DappRadar’s State of Blockchain Gaming report, published on April 10, shows that Web3 gaming projects raised $91 million in Q1 2025, down 71% from Q4 2024 and 68% from the same quarter last year.
DappRadar analyst Sara Gherghelas wrote that the figures showed “the growing pressure on early-stage startups and hinted that 2025 may prove more challenging than previous years — unless broader market conditions improve.”
The decrease in blockchain game investments, as noted by Gherghelas, is largely driven by investors favoring real-world assets and artificial intelligence over blockchain gaming.
The closed blockchain gaming deals increased by 35% from one quarter to the next during the same period.
Gherghelas said that the jump in deals shows that “while investors are writing smaller checks, they’re still actively engaging with a broader range of projects — indicating continued interest, albeit with more cautious allocation.”
Check out: NFT trading takes a 63% nosedive since December
According to the report, infrastructure-focused Web3 gaming projects captured the majority of funding in Q1, with most investments targeting scalable gaming infrastructure.
Gherghelas noted that the focus on infrastructure funding suggests that “investor confidence in the long-term potential of Web3 gaming remains intact,” with notable projects like those from MARBLEX and The Game Company leading the way.
With a joint fund of over $20 million from Immutable, MARBLEX, the blockchain gaming branch of South Korean developer Netmarble, plans a Semi-Publishing Model to assist more Web3 games.
On February 6, The Game Company, a Dubai-based firm specializing in blockchain cloud gaming, raised $10 million to create a platform that lets users play any game on any device.
Gherghelas highlighted that the maturation of the Web gaming industry brings a “clear push toward quality, innovation, and interoperability — whether through upgraded gameplay, new identity layers, or AI-enhanced mechanics.”
