DappRadar: Crypto games had mixed performance in Q1, with transaction volume increasing but total investment falling

While the total amount of investment in Web3 games declined in the first quarter, DappRadar data shows that the number of transactions increased month-on-month, with a focus on investments in infrastructure projects.

Blockchain games had a mixed performance in the first quarter of 2025, with an increase in the number of transactions but a significant decrease in investment amounts, blockchain analytics platform DappRadar said.

Web3 game projects raised $91 million in the first quarter of 2025, a 71% decrease from the fourth quarter of 2024 and a 68% decrease compared to the same period last year, DappRadar noted in its blockchain game report released on April 10.

DappRadar analyst Sara Gherghelas wrote that the data shows "increasing pressure on early-stage startups and suggests that 2025 may be more challenging than previous years - unless overall market conditions improve."

Another factor contributing to the decline in blockchain game investment is that investors are increasingly turning to real-world assets and artificial intelligence, Gherghelas pointed out.

Meanwhile, the number of blockchain game-related transactions increased by 35% month-on-month.

Web3 game projects raised $91 million in the quarter, a 71% decrease from the fourth quarter of 2024. Gherghelas said the increase in the number of deals shows that "while investors have reduced their check sizes, they are still actively involved in a wider range of projects - indicating continued interest, albeit more cautious in allocation."

Web3 game investors invest heavily in infrastructure

The report noted that most of the funding for Web3 games in the first quarter went to infrastructure-focused projects, most of which focused on scalable gaming infrastructure.

Gherghelas said the focus on infrastructure funding shows that "investors still have confidence in the long-term potential of Web3 games", and there were several standout projects this quarter, such as those from MARBLEX and The Game Company.

MARBLEX, the blockchain game division of South Korean game developer Netmarble, plans to adopt a semi-publishing model to support a wider range of Web3 games and has jointly raised more than $20 million in funding with Immutable.

Most of the funding for Web3 gaming last quarter went to infrastructure-focused projects, while The Game Company, a Dubai-based startup focused 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.

Gherghelas said that as the web gaming industry matures, “the push for quality, innovation, and interoperability is clear — whether through upgraded gameplay, new identity layers, or AI-enhanced mechanics.”