Web3 Gaming Investments Drop 71% Amid Macro Headwinds, Says DappRadar

Investor interest in blockchain gaming sharply declined in Q1, with funding for Web3 games plunging 71% quarter-over-quarter to just $91 million, according to new data from DappRadar. The downturn reflects broader market challenges, including escalating trade tensions and geopolitical uncertainty, which have cooled capital flows into risk-on tech sectors.

Despite the drop in investment value, deal activity in the sector rose by 35%, suggesting that while the big checks may be on pause, early-stage and infrastructure-focused projects continue to attract backing. Daily active wallets in blockchain gaming also slipped, down 6% to 5.8 million — a sign of waning user engagement, although still strong by Web3 standards.

Among the key funding rounds this quarter were $20 million for MARBLEX, $13.5 million for Beamable, and $10 million for The Game Company. All three are focused not on flashy front-end games but rather on back-end tools and infrastructure — the foundational layers required for scalable, sustainable gameplay in decentralized environments.

DappRadar’s analyst Sara Gherghelas highlighted that this shift in investor focus is consistent with a broader trend: infrastructure remains the backbone of Web3 gaming. “The increased number of deals, ongoing development of infrastructure, and the consistent performance of top games” all point to a sector that, while currently under pressure, is still evolving and showing resilience, she noted.

OpBNB, Binance’s layer-2 network, led the quarter as the most-used gaming blockchain — a standout in an otherwise quiet market. Meanwhile, NFT-related metrics followed a similar trend of contraction, with trading volume in the metaverse dropping 28%. Overall NFT volume across all segments fell to $13.7 billion in 2024, a steep decline from $16.8 billion in 2023 — the lowest figure since 2020.

While macroeconomic factors and regulatory uncertainties continue to weigh on investor sentiment, the underlying message from Q1 is clear: Web3 gaming is consolidating and building, not collapsing. The market is shifting from hype to utility — and the next wave of growth may come from the platforms building behind the scenes.