The Web3 gaming sector is undergoing a significant transition due to the emergence of blockchain technology. According to a new DappRadar report, the crypto gaming industry has collectively received a staggering $297 million in investment funding in the month of July despite a slump in metaverse and non-fungible tokens (NFT) sales.
The introduction of Web3 gaming has opened up a whole new realm of exciting experiences for both casual and hard core gamers, alike. Blockchain based gaming provides an online experience that allows gamers to engage in decentralized gaming experiences, ensure high transparency, facilitates the in-game economy which helps the gamers to earn and monetize their gaming skills and capabilities and gurantees total ownership and control over users assets and collectibles.
Crypto Gaming Industry Attracts Huge Investments
On August 10, DappRadar published a joint report along with the Blockchain Game Alliance detailing investors are betting big on the crypto gaming space with massive investments. The report claimed investors pumped a whopping $297 million in Web3 gaming, triggering an explosive month for the industry, compared to June, which saw a comparatively meager $68 million in investments.
According to the report, 63%, approximately $187 million, of the July funding was committed to infrastructure development in the space with blockchain gaming accounting for 41% of on-chain decentralized applications (dApp) activity in July. Meanwhile, the combined investments towards games and metaverse ventures reached $110 million, accounting for the remaining 37%.
Current figures point to a daily unique active wallets (dUAW) count of 712,611 for the gaming sector. This denotes a marginal drop of 0.5% month-on-month, yet it commands a significant 41% of the entire industry’s engagement.
Recent Investments Upped Industry Confidence
DappRadar speculated that the low numbers in June could have been partly due to the broader crypto industry reeling from the U.S. Securities and Exchange Commission (SEC) targeting both Binance and Coinbase in June, further tighetining the noose around the burgeoning industry.
Web3 Gaming will be the Biggest Driver of Crypto Adoption
The report also highlighted the growing dominance of Ethereum’s L2 solution, Arbitrum (ARB), as a pivotal gaming platform with leading crypto projects tapping the network to scale as well as launch new services to cement their presence in the burgeoning world of decentralized finance (DeFi) and blockchain gaming.
In addition, Google is gearing up to usher web3 gaming into its Play Store later this year, givng unwavering support to the blockchain community worldwide. Despite regulatory upheaval shaking up the crypto world, blockchain gaming is holding a solid ground, emerging among the fastest growing tributary of Web3.
The craze of blockchain gaming is growing exponentially by the day, catching the attention of industry players with many industry veterans emphasizing the importance of blockchain gaming in crypto adoption.
Recently, Sandeep Nailwal, the co-founder of the Polygon (MATIC), claimed that Web3 gaming will eventually become one of the biggest drivers of mass crypto adoption and help to increase genuine at-scale “real life” use cases for blockchain other than trading and payments.