Investors target ‘fun-first’ crypto games as funding jumps 94% in July

Web3 gaming funding steamed back as daily unique active wallets rose 2% to 4.9 million in July, with signs of a maturing industry.

Investments in Web3 gaming projects surged to $60 million in July, reversing a three-month lull, with investors now focusing on games built around fun, according to blockchain analytics platform DappRadar.

March still has the highest month for Web3 gaming funding this year at $69 million, but after a slump in April, May and June, capital is flowing again “primarily to projects with proven teams, strong IP, or infrastructure supporting multiple games,” DappRadar analyst Sara Gherghelas said in a report published on Thursday.

However, smaller studios are suffering, and projects without traction or sustainable economies are closing or pivoting, according to Gherghelas.