According to blockchain analytics platform DappRadar, investment in Web3 game projects surged to $60 million in July, reversing three months of stagnation, with investors now focusing on entertainment-centric games.
Although March was the highest month for Web3 game financing this year, reaching $69 million, funding began to flow again after the stagnation in April, May, and June, primarily directed towards projects with mature teams, strong IP, or infrastructure supporting multiple games.
However, small studios are struggling, and those projects without appeal or sustainable economies are shutting down or pivoting.
“For Web3 games, it is a survival competition: tough for small businesses, but potentially healthy for long-term stability.”
Investors support 'entertainment-first' Web3 games
Investors are also beginning to favor games that prioritize entertainment, which integrate blockchain elements like wallets, AI tools, and cross-chain systems on the backend.
Gherghelas points out that in the short term, there may be fewer but stronger Web3 games released, with cross-platform launches and brand-driven titles attracting mainstream audiences.
“What we are witnessing is a more solid and sustainable infrastructure that may make the next wave of Web3 games bigger and stronger than ever before.”
In April, DappRadar stated that investor interest in Web3 games had cooled due to a shift towards real assets and AI, but the market has entered a more mature phase, focusing on high-quality gaming experiences, sustainable economies, and scalable infrastructure.
“Projects that succeed today are laying the groundwork for the next round of growth, making Web3 games one of the most resilient and forward-looking sectors in the blockchain space.”
The number of blockchain game wallet users increased by 2%
In July, the number of daily active wallets for blockchain games reached 4.9 million, a 2% increase from June.
Gherghelas stated that last month blockchain games were the only sector to record an increase in activity, with leading games maintaining player interest through significant updates.
“While other industries have cooled, July proved that Web3 games continue to grow, with monthly active players nearly reaching 5 million.”
“Games still dominate the industry, but the gap with AI applications is gradually narrowing. The competition between these two fields will be a key trend to watch.”