Blockchain gaming projects are struggling to attract funding this year compared to 2024, but analysts argue there is a sliver of hope as studios release new games aimed at tapping into the mainstream gaming audience.
In Q3, the Blockchain Gaming Industry It saw $129 million of venture capital flow in, its strongest quarter this year, bringing the total for the year up to $293 million.
However, the total is only a fraction compared to last year. By 2024, Dappradar recorded more than $1.8 billion flowing in Blockchain Gaming Industryand 2025 is far off track to attract only 25% of last year’s total.
Dappradar’s Head of Content, Robert Hoogendoorn, said The recent Q3 uptick was likely influenced by a surge in the broader crypto market.
“The shimmer of success cannot be seen separately from the general crypto market. The last few months have been a period of growth, mainly for Bitcoin,” he said in the state of blockchain gaming report released on Thursday.
Investors know better
Hoogendoorn said that “this means that development teams can no longer rely on half-assed products to get funding.”
“Instead, they have to show a working product and create actual demand. Venture capital still flows, but not every shiny new idea gets a chance to thrive.”
In March, Sky Mavis co-founder Jeffrey Zirlin shared a similar opinion, telling Cointelegraph that Crypto gaming investors are no longer blindly throwing funds away in “Axie Killers” which cannot be delivered.
The three biggest funding rounds for the quarter saw developer E-Pal attract $30 million for the gaming platform, while first-person shooter Shrapnel secured $19.5 million, and India-based studio Supergaming scored $15 million to expand the Game Royale game and build its own L3 network on top of the base.
Related: Crypto play mixed in Q1 as deals jump, total investment Dip: Dappradar
“Some projects developed while market conditions were not optimal, others had development teams that managed their funds well enough to overcome the obstacles of a bear market,” added Hoogendoorn.
Mainstream adoption provides a glimmer of hope
Mainstream adoption That could bring in some new blood for the industry, Hoogendoorn said, but so far, there’s been some “difficulty attracting a mainstream audience,” and studios hoping to tap into millions of gaming enthusiasts are having limited success.
“However, during Q3 2025, we saw several respectable projects launching their games, creating a shimmer of hope for an industry desire for mainstream acceptance,” said Hoogendoorn.
“As we close out Q3 2025, the blockchain play stands at a crossroads: resilient amid recession, still hungry for major breakthroughs.”
Online Data Platform Statista Estimates That there are more than 2.7 billion active players worldwide, representing a huge market for blockchain-based games.
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