In the first quarter of 2025, the blockchain gaming industry presents a complex situation. According to a report by DappRadar, while the number of transactions has increased by 35% year-on-year, the total investment has decreased by 71%. Investors have shown greater interest in infrastructure projects, particularly scalable gaming infrastructure. Companies such as MARBLEX and The Game Company received significant funding during this period. Analyst Sara Gherghelas pointed out that although investors are more cautious, they still have confidence in the long-term potential of Web3 gaming.

RADAR

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. 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." 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. Meanwhile, Dubai-based startup The Game Company, a firm f ocused 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. Related: Blockchain gaming market is a ‘game of musical chairs’ — Gunzilla exec 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.” Magazine: Illegal arcade disguised as … a fake Bitcoin mine? Soldier scams in China: Asia Express 

In Q1 2025, blockchain game investments decreased but transactions increased.