Web3 Gaming Infrastructure Projects Soar with $297 Million Investment Surge in July
In the past month, Web3 gaming infrastructure projects have seen a remarkable surge in investment, receiving a staggering 63% of total funding, amounting to $187 million USD. July marked a significant revival in investments for Web3 gaming, reaching a total investment of $297 million USD. The driving force behind this increase has been a series of strategic partnerships and crucial announcements that have ignited the industry.
Just a month prior, DappRadar data indicated a decline in blockchain game funding, hitting a year-low of $68 million USD. The primary reason was the persistent challenges within the market. The successive legal challenges faced by leading exchanges Binance and Coinbase from the U.S. Securities and Exchange Commission (SEC) had cast a shadow of uncertainty across the market, adversely affecting numerous gaming projects.
However, as we moved into July, investor confidence began to rebound, and the gaming community received a slew of positive news from various game projects.
On July 13th, Binance Labs pledged a $15 million USD investment into Xterio, a Web3 gaming startup. With Binance’s backing, the project is poised to develop an AI toolkit for generating 2D and 3D assets. On July 26th, Sky Mavis, the creator of the popular game Axie Infinity, announced a partnership with the NFT project CyberKongz, unveiling a new blockchain game.
Presently, according to DappRadar, approximately 712,611 active wallets are utilized daily within the gaming sector. This figure represents a marginal 0.5% decrease from the previous month but still accounts for 41% of the crypto market’s activities.
In July, the majority of investment flowed into infrastructure projects, with the blockchain gaming infrastructure sector garnering $187 million USD in funding, equating to 63% of the total allocation. This clearly indicates that gaming is still in its nascent stages. Investors are keeping a close watch on tools and platforms that can create favorable conditions for crypto games and NFTs in the future.
Meanwhile, investments in gaming and metaverse initiatives reached a milestone of $110 million USD, comprising 37% of the overall funds. However, the overall trading volume for metaverse games experienced a substantial decline in the previous month.
Metaverse game trading volume hit a yearly low at $5.6 million USD. With 10,796 transactions, the average price per NFT stood at $523 USD. This price point is a far cry from the booming metaverse era of 2021 when a virtual plot adjacent to Snoop Dogg’s in The Sandbox was sold for $450,000 USD. WAX continues to lead the pack as a prominent blockchain for gaming projects. With 300,325 monthly active wallets, WAX hosts several popular Web3 games such as Alien Worlds, Wombat Dungeon Master, and Taco.
BNB Chain secured the second spot with a 43% increase, reaching 108,311 wallets. This growth was largely driven by game platforms like Xterio and Gaimin. SKALE, a blockchain supporting games like CryptoBlades, experienced a 64% surge, totaling 18,133 wallets. Flow saw a remarkable 105% increase, boasting 19,621 wallets.
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