Crypto Gaming Investment Plummets 71%, Transactions Surge Despite Funding Dip

The Web3 gaming industry is facing a period of significant change. Crypto investments in games saw a steep decline in Q1 2025, dropping by a staggering 71% compared to the previous quarter. This drop was particularly impactful for startups seeking funding, as fundraising amounts significantly reduced from $310 million at the end of 2024 to a mere $91 million. Despite this, transaction volumes in the sector saw a surge of 35%. The Web3 ecosystem remains active but has adjusted its investment strategy. While there are fewer large-scale investments, an increase in smaller, more numerous investments indicates sustained interest in the games space.