- Blockchain Games raised $1 billion in funding in January.
- According to a report by DappRadar and Blockchain Games Association (BGA) they accounted for 52% of activity in the Dapp industry.
- DeFi Kingdoms was the most active game by transaction volume with $1.84 billion, or roughly 38.2%.
Blockchain gaming continued to dominate the developer apps industry in January, raising $1 billion in funding from various venture capital firms. According to a report published by DappRadar in collaboration with Blockchain Games Association (BGA), blockchain gaming activity accounted for 52% of the developer apps activity in January.
Among the highlighted games was DeFi Kingdoms, which according to the report locked a total transaction volume of $1.84 billion, accounting for about 38.2% in the subsegment. Axie Infinity, which is still the most popular game in terms of cumulative trading volume, locked in $540 million, accounting for about 11%.
During the month, Animoca Brands topped the funding rounds raising nearly $360 million, giving the blockchain-focused VC a valuation of about $5 billion, while OpenSea raised $300 million pushing its theoretical market value to $13.3 billion.
Other major fundraisings highlighted include Mechanism Capital’s $100 million raise, The Sandbox’s $50 million round for an open metaverse, invested with Brinc, a startup accelerator platform.
The traditional gaming industry is valued at about $200 billion, backed by a user base of approximately 2.4 billion. However, the shift towards blockchain gaming is becoming a reality, creating more opportunities for growth.
Mainstream game developer companies like Ubisoft and Jam City were among the first ones to embrace the new paradigm shift, amid backlash from their fans. On the other hand, game console developers are approaching the new market with caution, with the likes of Nintendo and Play Station, stay away for now.
Nonetheless, with Microsoft, the developer of the Xbox gaming console showing a keen interest in the blockchain gaming industry following the $69 billion purchase of Activision Blizzard, more console makers could follow.
Moreover, online game retail marketplaces like Gamespot have already shifted gears towards Web3 with the announcement of an NFT marketplace, which again pushes game distribution platforms towards blockchain gaming.
The DappRadar report also points to the mega-deals completed by Take-Two and Sony as a signal that metaverse gaming could be the next frontier in the industry.
“Considering the record amount of capital invested in blockchain games and infrastructure in the last 13 months, the interest for games and the metaverse is undeniable,” DappRadar and BGA analysts wrote in the report.
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