Blockchain gaming projects have faced challenges in securing funding this year compared to 2024. However, analysts suggest there’s a glimmer of hope as studios roll out new games targeting the mainstream gaming audience.
In Q3, the blockchain gaming sector attracted $129 million in venture capital, marking the strongest quarter of the year and raising the total for the year to $293 million.
Yet, this amount is merely a fraction of last year’s figures. In 2024, DappRadar reported over $1.8 billion in blockchain gaming investments, and 2025 appears set to draw in only 25% of the previous year’s total.
DappRadar’s head of content, Robert Hoogendoorn, noted that the recent Q3 increase was likely influenced by a rise in the broader crypto market.
“This brief period of success cannot be viewed independently of the crypto market. Recent months have witnessed growth, particularly for Bitcoin,” he mentioned in the State of Blockchain Gaming Q3 report released on Thursday.
Investors are more selective
Hoogendoorn remarked that this shift means development teams must no longer rely on subpar products to secure funding.
“Instead, they must present a viable product and generate genuine demand. While venture capital is still available, not every flashy new idea will be granted the opportunity to prosper.”
In March, Sky Mavis co-founder Jeffrey Zirlin expressed a similar viewpoint, stating that crypto gaming investors are now more discerning, avoiding investments in “Axie killers” that fail to meet expectations.
The largest funding rounds for the quarter included developer E-PAL raising $30 million for its gaming platform, first-person shooter Shrapnel securing $19.5 million, and India-based studio SuperGaming obtaining $15 million to enhance its battle royale game and create its own L3 network on Base.
Related: Crypto gaming experiences mixed Q1 as deals surge, investment totals decline: DappRadar
“Some projects flourish even in suboptimal market conditions, while others have development teams that effectively manage their finances to navigate the challenges of a bear market,” Hoogendoorn added.
Mainstream adoption brings a glimmer of hope
Mainstream adoption could inject new energy into the industry, Hoogendoorn suggested, though attracting a mainstream audience has proven challenging, with studios experiencing limited success in onboarding millions of gamers.
“Nevertheless, during Q3 2025, we observed a handful of reputable projects launching their games, instilling a sense of optimism in an industry yearning for mainstream recognition,” Hoogendoorn mentioned.
“As we approach the end of Q3 2025, blockchain gaming finds itself at a pivotal moment: resilient during a contraction yet eager for mainstream breakthroughs.”
Online data platform Statista estimates that there are over 2.7 billion active gamers globally, representing a vast market for blockchain-based games.
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