Blockchain gaming for the first quarter of 2025 has been a “mixed bag,” seeing a greater number of deals while the amount invested significantly dipped, says blockchain analytics platform DappRadar.

Web3 gaming projects raised $91 million in Q1 2025, marking a 71% decrease from the fourth quarter of 2024 and a 68% drop compared to the same quarter a year ago, DappRadar said in its April 10 State of Blockchain Gaming report.

DappRadar analyst Sara Gherghelas wrote the figures showed “the growing pressure on early-stage startups and hint that 2025 may prove more challenging than previous years — unless broader market conditions improve.”

Another factor for the drop in investments in blockchain games is investors are increasingly shifting toward real-world assets and artificial intelligence, according to Gherghelas.

Over the same time, the number of blockchain gaming-related deals that closed increased by 35% quarter-over-quarter.

Web3 gaming projects raised $91 million for the quarter, marking a 71% decrease from Q4 2024. Source: DappRadar

Gherghelas said 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.”

Web3 gaming investors go big in infrastructure

The lion’s share of funding for Web3 gaming in the first quarter went to infrastructure-focused projects, with most focused on scalable gaming infrastructure, according to the report.

Gherghelas said the focus on infrastructure funding signaled that “investor confidence in the long-term potential of Web3 gaming remains intact,” with a few stand-out projects in the quarter, such as those from MARBLEX and The Game Company.

MARBLEX, the blockchain gaming division of South Korean game developer Netmarble, has plans for a Semi-Publishing Model to support a wider variety of Web3 games, backed by a joint fund exceeding $20 million with Immutable. 

Most of the funding for Web3 gaming last quarter went to infrastructure-focused projects. Source: DappRadar

Meanwhile, Dubai-based startup The Game Company, a firm focused on blockchain-based cloud gaming, received $10 million in funding on Feb. 6 to help develop a platform that allows users to play any game on any device.

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Gherghelas said that as the Web gaming industry matures, there is “a clear push toward quality, innovation, and interoperability — whether through upgraded gameplay, new identity layers, or AI-enhanced mechanics.”

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