The blockchain gaming sector has faced a difficult period concerning securing financial backing, as reported by DappRadar, however, a surge in activity during the third quarter is generating optimism, and recent game releases could potentially shift the prevailing trend is the sentiment that is being conveyed.
Funding for blockchain gaming endeavors has been challenging to secure this year when compared to 2024, however, a small glimmer of optimism is being suggested by observers as development studios commence the launch of new titles that are intended to access the broad audience of conventional gamers is the consensus among analysts.
Blockchain Gaming Funding Rebounds but Remains Far
In the third quarter, a total of $129 million in venture capital was witnessed flowing into the blockchain gaming sector, which marked its most robust three-month period of the current year, bringing the cumulative funding for the year to date to $293 million is the figure that was recorded for the total funding.
Nonetheless, the current cumulative amount is only a minor portion when compared to the figures recorded during the preceding year. In 2024, over $1.8 billion was tracked by DappRadar flowing into the blockchain gaming vertical, and 2025 is currently projected to capture only 25% of the prior year’s total is the finding that was made by DappRadar.
Robert Hoogendoorn, DappRadar’s chief of content operations, asserted that the recent increase observed in the third quarter was also likely influenced by a corresponding surge within the broader cryptocurrency market is the opinion that was expressed by Hoogendoorn.
“That slight indication of positive results cannot be viewed separately from the wider cryptocurrency market’s performance is the perspective that must be maintained. The last few months have been a period where expansion was observed, primarily concerning Bitcoin,” was his comment in the “State of Blockchain Gaming Q3 report” that was published on Thursday.
Investors Adopt a More Selective Approach
Hoogendoorn communicated that this “implies that funding can no longer be secured by development teams relying on poorly-executed products is the new reality that must be accepted by the teams.
“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.”
A similar viewpoint was expressed by Sky Mavis co-founder Jeffrey Zirlin in March, when he informed that investment capital is no longer being committed blindly by crypto gaming financiers into “Axie killers” that are unable to fulfill their promises is the observation that was made by Zirlin.
The three most substantial funding rounds for the quarter involved developer E-PAL, which successfully secured $30 million for its gaming platform, while $19.5 million was obtained by the first-person shooter Shrapnel, and $15 million was garnered by India-based studio SuperGaming to facilitate the expansion of its battle royale game and the creation of its own L3 network on top of Base is the breakdown that was observed.
“Some projects thrive while the market conditions aren’t optimal, others have development teams that have managed their funds properly to overcome the hurdles of a bear market,”
Hoogendoorn added.
Mainstream Adoption Offers a Glimmer of Optimism
New participants could be provided to the sector through broad market acceptance, according to Hoogendoorn, but at the present time, there has been some “difficulty attracting a general user base,” and studios that are hoping to integrate millions of gaming enthusiasts are only seeing limited success is the assessment that was given by Hoogendoorn.
“However, during Q3 2025, we did see some reputable projects launching their games, creating a shimmer of hope for an industry longing for mainstream acceptance,”
Hoogendoorn said.
“As we close Q3 2025, blockchain gaming stands at a crossroads: resilient amid contraction, yet hungry for mainstream breakthroughs.”
It is estimated by the online data aggregator Statista that there are more than 2.7 billion active video game enthusiasts around the globe, which constitutes a vast potential market for blockchain-integrated games is the figure that is provided by the platform.
