The concept of blockchain-based gaming is widely appreciated, but these games have seen a lower adoption rate compared to traditional games. On the other hand, investors remain attracted to Web3 games and continue to invest dedicatedly for their advancement and improvement.
In recent developments, a venture capital firm based in the UAE has announced that it will invest $1 million in TZ APAC for the betterment of Web3 games on the Tezos blockchain.
Quantix Capital has announced its alliance with TZ APAC, a registered entity overseeing games on Tezos; the alliance also includes a $1M investment, especially for the games on the Tezos blockchain.
The deal will also include mentorship from the venture capital board and other experts in both companies.
Following the announcement, the managing director of Quantix Capital said, “Our investment is not just financial,” adding, “It’s a commitment to nurture creativity and innovation among builders who are shaping the future of gaming and interactive entertainment.”
In the past few quarters, several published reports have claimed that the growth of the blockchain gaming industry remains steady, and 80 percent worldwide haven’t explored these games yet.
The blockchain-based gaming market is expected to mirror rapid growth, increasing from $10.2B in 2024 to $304.3B by 2033 at a compound annual growth rate of 67.7 percent.
Despite Huge Funding, What’s Hindering Web3 Games Growth!
Cryptocurrencies and other related products and services have been gaining traction, and leading venture capitals have been financially favoring startups among all centralized categories that have raised and gathered a significant number of funds, followed by decentralized NFTs, Games, and others.
Blockchain games raised $128M in Q3, which is 56 percent less than the $296M the industry raised in the second quarter, according to research by Blockchain Gamer.
Investment rounds have also been much smaller on average; in Q3, NPC Labs raised $18M in initial investment for their scaling network for gaming applications.
DappRadar data notes that Q3,2024 funding for Web3 games fell 90 percent quarter on quarter. It states that the Q2, of 2024 brought in $1.1B, whereas the third quarter barely managed $110M.
Rootdata notes that Azra Games has raised the highest funding in the Web3 gaming category, followed by Parallel, Gunzilla Games, and others.
In the pre-seed subcategory, Ginger Joy raised $1.26M, GolfN raised $1.3M, and XOOB secured $ 1.6 M.
Axie Infinity and Sandbox continue to grow their dominance in the Web3 gaming category. Still, the steady growth is expected to hinder the path toward a brighter and bigger future of blockchain-based gaming.
However, gaming experts argue that the slow pace of the Web3 gaming industry is a big concern, but it is also assumed that it might prove the quote “slow and steady wins the race,” is a true saying.
