Web3 gaming funding steamed back as daily unique active wallets rose 2% to 4.9 million in July, in signs of a maturing industry.
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Investments in Web3 gaming projects surged to $60 million in July, after a three-month lull, with investors focusing on games built around fun, according to blockchain analytics platform DappRadar.
March still had the highest month for Web3 gaming funding this year at $69 million, but after a slump in April, May and June, capital was flowing again “primarily to projects with proven teams, strong IP, or infrastructure supporting multiple games,” DappRadar analyst Sara Gherghelas in a report published on Thursday.
However, smaller studios were suffering, and projects without traction or sustainable economies were closing or pivoting, according to Gherghelas.
“It’s a Darwinian stage for Web3 gaming: tough for small players, but potentially healthy for long-term stability.”
Investors backing “fun-first” Web3 games
Investors have also shifted to favor games that focus on fun first rather than as an afterthought, with optional blockchain elements, back-end tech like wallets, artificial intelligence tools, and cross-chain systems.
Gherghelas said in the short term, there will likely be fewer but releases, cross-platform launches, and brand-driven titles to attract mainstream audiences.
“The hype cycles may be behind us, but what we are witnessing is a more grounded, sustainable foundation being built, one that could make the next wave of Web3 gaming bigger and more resilient than ever.”
In March, Sky Mavis co-founder Jeffrey Zirlin shared a similar opinion, telling Cointelegraph that into “Axie killers” that fail to deliver.
“Axie killers” was once used to describe gaming projects that claimed to be the next big Web3 game.
Web3 gaming has become more mature
In April, DappRadar said investor interest in Web3 gaming and AI.
However, the market has now entered a more mature phase, Gherghelas said, with a focus on quality gameplay, sustainable economies and infrastructure designed to scale.
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“The projects thriving today are laying the foundation for the next wave of growth, positioning Web3 gaming as one of the most resilient and forward-looking sectors in the blockchain space,” she said.
“Studios funded today, if they build sustainable tokenomics and retain users, could be in the best position when macro conditions improve in 2026.”
Blockchain gaming wallet users rise 2%
Blockchain gaming reached 4.9 million in July, up 2% from June, leading the decentralized app ecosystem.
Gherghelas said blockchain gaming was the only area to record increased activity last month as industry leaders continue to “hold their ground,” with the top titles keeping players interested through major updates.
“July proved that Web3 gaming continues to build momentum. While other sectors cooled, gaming not only held its ground but grew its audience, reaching nearly five million monthly players,” she added.
“Gaming still dominates the industry, although the gap with AI applications is becoming increasingly narrow. The competition between these two sectors will be a key trend to watch moving forward.”
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