In the initial quarter of the year, the blockchain gaming domain encountered a significant downturn in venture capital inflows, with investments plummeting by a staggering 57%, reaching a total of $288 million, according to recent data.
This decline in venture capital activity reflects a nuanced sentiment within the blockchain gaming community.
The data, collated by DappRadar, underscores a marked reduction in investment activity during Q1, with a notable 57% drop compared to the preceding quarter of 2023.
Sara Gherghelas, a discerning blockchain analyst at DappRadar, elucidated that the lion’s share of these investments gravitated towards web3 games and infrastructural development.
Amidst this backdrop of diminished investment activity, only two standout deals emerged to shape the investment during this period: Parallel Studios and Gunzilla Games.
Parallel Studios, in a notable funding round in March, secured a substantial $35 million in investment capital, bolstered by a consortium of backers including Distributed Global, The Operating Group, VanEck, Solana Ventures, Base Ecosystem Fund, and Amber, among others.
While the specifics of the fund allocation remain undisclosed, indications point towards a strategic expansion across diverse platforms, with a pivotal focus on leveraging the Epic Games Store gaming marketplace as a cornerstone for their expansion endeavours.
Similarly, Gunzilla Games, in a parallel endeavour, successfully raised $30 million for their forthcoming venture, Off the Grid, a compelling free-to-play battle royale game.
This investment infusion, co-led by CoinFund and Avalanche’s Blizzard Fund, is earmarked to facilitate the game’s expansion across a myriad of gaming platforms, including Sony PlayStation, Microsoft’s Xbox, and PC.
