The blockchain gaming industry had a tough start to the year, with venture capital deal value falling nearly 60% to $288 million, indicating that investors are cautious.

Developers in the blockchain gaming industry face a mix of caution and optimism, with venture capital deal volume declining compared to previous quarters. According to data collected by DappRadar, the industry received $288 million in funding in the first quarter, a 57% drop compared to the fourth quarter of 2023.

“The focus of these investments is primarily on web3 gaming and infrastructure. This certainly highlights the period of infrastructure construction aimed at enriching the web3 gaming ecosystem.”

Sara Gherghelas, Blockchain Analyst at DappRadar

The analyst noted that only two standout deals shaped the investment landscape during this period: Parallel Studios and Gunzilla Games.

In March, Parallel Studios received $35 million in funding from investors including Distributed Global, The Operating Group, VanEck, Solana Ventures, Base Ecosystem Fund, and Amber. Although the developer did not provide specific details on how they plan to use the funds, it seems that the studio's goal is to expand its influence on various platforms, and the Epic Games Store game market will be a key milestone in its expansion.

Gunzilla Games has also raised $30 million for its upcoming project Off the Grid, a free-to-play battle royale game. The investment was co-led by CoinFund and Avalanche’s Blizzard Fund, with the goal of expanding the game to multiple gaming platforms, including Sony PlayStation, Microsoft’s Xbox, and PC.

Despite investor caution, the influx of investments in new game development and technological advances “shows that people are hopeful about the future,” Gherhelas noted.

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