Blockchain Gaming Startups Secure $517M In Q3 Funding, Marking A Resurgence, Says Farcana Founder

by
Alisa Davidson

Published: November 12, 2024 at 4:05 am Updated: November 12, 2024 at 4:05 am

by Ana

Edited and fact-checked:
November 12, 2024 at 4:05 am

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Blockchain gaming sector has witnessed increased investor interest over the past year, creating new funding opportunities for game developers and startups. In the third quarter of 2024, gaming startups secured $517 million in investments, demonstrating this heightened attention. Recently, VanEck announced an investment in Gunzilla Games, the developer of the anticipated dystopian shooter “Off The Grid.” This funding reflects VanEck’s ongoing support for the evolving blockchain gaming space, following its prior investment in Parallel, a Web3 card game.

“The Q3 funding numbers show a major surge of confidence in blockchain gaming, something that was missing after 2021,” said Ilman Shazhaev, CEO and Founder of Farcana, in a written statement. “For the past two years, there’s been a notion that blockchain gaming is dead because the play-to-earn model failed in several projects. However, developers and founders have learned from those challenges, and Web3 gaming has significantly improved and evolved. That’s why we’re now seeing more investor enthusiasm and market readiness in this sector,” he added.

With over $500 million invested, it is evident that both industry players and financial institutions view blockchain gaming as a lasting and promising sector, not just a fleeting trend.

VanEck’s investment in Gunzilla Games marks a major move in unlocking the full potential of this space. As a respected global asset manager known for its strategic investments, VanEck’s involvement signals a pivotal moment for blockchain gaming. The entry of institutions like VanEck into the field brings not only capital but also credibility, helping to establish blockchain gaming as a legitimate, long-term opportunity. This institutional backing not only infuses funding but also attracts more participants to the ecosystem by fostering a sense of stability and trustworthiness.

Gunzilla’s Approach Appeals To Institutions, Transforming Engagement And Revenue In Digital Entertainment

Gunzilla’s Off The Grid project goes beyond using blockchain for asset ownership, aiming to build a deeper, player-driven economy within the game. This trend is particularly appealing to institutions as it creates new monetization possibilities, such as in-game marketplaces and digital asset economies, which are difficult to achieve in traditional Web2 models. It indicates that if Web3 games successfully incorporate blockchain features while focusing on gameplay, competitiveness, and narrative depth, they will continue to attract positive funding opportunities.

Ultimately, these funding trends suggest that institutional investors recognize blockchain gaming as a legitimate avenue for transforming engagement and revenue in digital entertainment. For Web3 developers, this represents an ideal moment to refine game mechanics, scale their projects, and engage a growing player base that values ownership, transparency, and flexibility in gameplay.