Blockchain gaming has encountered significant challenges in funding this year, as reported by DappRadar. However, the recent uptick in Q3 signals a potential turnaround with new game releases poised to engage a broader audience.

In the third quarter, the blockchain gaming sector secured $129 million in venture capital, marking its most successful quarter thus far and bringing the total year-to-date to $293 million. Yet, this amount pales in comparison to the over $1.8 billion recorded in 2024 for the same industry. Analysts are projecting that 2025 may only see 25% of last year’s total.

DappRadar’s head of content, Robert Hoogendoorn, observed that factors contributing to the Q3 increase likely include a rise in the overall crypto market. He remarked, “That shimmer of success can’t be seen separate from the general crypto market. The past few months have been a period of growth, mainly for Bitcoin.”

Investors are Becoming More Selective

Hoogendoorn emphasized that development teams can no longer depend on mediocre products to secure funding.

“Instead, they need to show a working product and create actual demand. Venture capital still flows, but not every shiny new idea gets the chance to flourish.”

In March, Jeffrey Zirlin, co-founder of Sky Mavis, echoed similar sentiments, noting that crypto gaming investors have become discerning, avoiding ‘Axie killers’ that do not deliver.

In Q3, notable funding rounds included developer E-PAL, which secured $30 million, and Shrapnel, which received $19.5 million, while the Indian studio SuperGaming raised $15 million to enhance its battle royale game and advance its own L3 network atop Base.

As Hoogendoorn stated, “Some projects thrive while the market conditions aren’t optimal, while others display financial prudence to navigate bear markets.”

Mainstream Adoption Offers New Hope

Hoogendoorn believes that mainstream adoption could bring fresh opportunities for the industry. However, studios aiming to attract millions of gamers face difficulties. He noted, “Despite the challenges, reputable projects have begun launching their games, offering a sigh of relief for the industry.”

“As we close Q3 2025, blockchain gaming stands at a crossroads: resilient amid contraction, yet hungry for mainstream breakthroughs.”

According to data platform Statista, there are over 2.7 billion active gamers worldwide, representing a massive market ripe for blockchain games.