Blockchain gaming projects have struggled to raise funding this year compared to 2024, but analysts argue there is a glimmer of hope as studios release new games aimed at capturing a mainstream gaming audience.
The blockchain gaming industry saw $129 million in venture capital inflows in the third quarter, making it the largest quarter of the year and bringing the year-to-date total to $293 million.
However, that total is only a fraction of last year. In 2024, DappRadar recorded over $1.8 billion in inflows into the blockchain gaming industry, but in 2025 it is currently expected to collect only 25% of the previous year’s total.
Robert Hoogendoorn, head of content at DappRadar, said the recent third-quarter rally was likely influenced by the broader crypto market rally.
“That glimmer of success cannot be seen in isolation from the general cryptocurrency market. The past few months have been primarily a period of growth for Bitcoin,” he said in his Q3 State of Blockchain Gaming report released Thursday.
Investors are becoming more discerning
Hoogendoorn said this “means development teams can no longer rely on half-baked products to get funding.”
“Instead, you need to demonstrate a viable product and create real demand. Venture capital is still flowing, but not every bright new idea gets the chance to blossom.”
In March, Sky Mavis co-founder Jeffrey Zirlin shared a similar sentiment, telling Cointelegraph that investors in the crypto game are no longer blindly throwing money into “axie killers” that won’t deliver.
The three largest funding rounds of the quarter included developer E-PAL getting $30 million for its gaming platform, first-person shooter game Shrapnel getting $19.5 million, and India-based studio SuperGaming getting $15 million to expand its battle royale game and develop its own L3 network on Base.
Related: In the first quarter, crypto games were mixed with a sharp increase in transactions and a decline in total investment: DappRadar
“Some projects thrive in sub-optimal market conditions, while others have development teams that manage their finances well to overcome bear market hurdles,” Hoogendoorn added.
Mainstream adoption brings rays of hope
Hoogendoorn said that while mainstream adoption could bring new blood to the industry, there is currently “difficulty attracting mainstream audiences”, limiting success for studios hoping to reach millions of gamers.
“However, in the third quarter of 2025, we saw several well-received projects launch their games, creating a glimmer of hope in an industry desperate for mainstream acceptance,” Hoogendoorn said.
“As we finish the third quarter of 2025, blockchain gaming is at a crossroads. Resilient amidst contraction, but hungry for mainstream breakthroughs.”
Online data platform Statista estimates that there are over 2.7 billion active gamers worldwide, representing a huge market for blockchain-based games.
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