Is 2023 a new year for cryptogaming?

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  • Crypto gaming saw robust funding despite the significant drop in blockchain game token prices.
  • Venture capitalists – the “true OGs” – continue to bet big on leading game studios, with experience and end product as key factors.
  • The Web3 game industry is in the “build” phase as the hype cycle fades and only the best will make it.

The history of games to play to earn has undergone a positive change, especially in 2022. The market is still reeling from the sudden influx of capital and users, which was followed by a significant drop in blockchain prices. game tokens and a decrease in the number of players.

And with the aftermath of the FTX debacle spreading to all parts of the industry, the prospects for earning money at first glance seem bleak. But looking under the hood, the data paints a different story: Robust funding this year has laid the groundwork for significant “building” in 2023.

For several months now, the market has been receiving money thanks to a steady stream of significant fundraisers conducted by Web3 gaming firms. UnCaged studios managed to raise $24 million in the month of August, adding to the roughly $750 million collected by Web3 gaming developers in just that one month.

The momentum continued into September, when Revolving Games successfully raised $25 million, and into October, when Odyssey Interactive, Stardust, and SkyWeaver raised $19 million, $30 million, and $40 million, respectively. In November, Thirdverse managed to raise $15 million in funding for Web3 plus virtual reality (VR) games;

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The plummeting asset prices and player enthusiasm in the Web3 gaming area are completely contradicted by these numbers. Despite both players and tokens struggling, venture investors continue to place big bets on the potential of blockchain gaming. Which of the studios will emerge victorious in the coming year? With what purpose?

Venture capitalists: the real OG has all the power

It is important to note that the majority of companies that have been awarded funds are required to hold seed or pre-seed offerings. This is a requirement that has been consistent across the majority of fundraising events over the past few months. They, on the other hand, hold the Series As.

Without a doubt, there are a few significant deviations from the standard. A number of studios have completed their seed or pre-seed phase with great success. Despite this, the founding teams of these companies have significant gaming experience.

To illustrate, Ruckus Games is a video game development studio that was recently able to secure early funding of $5.5 million.

This suggests that venture capitalists are shifting their focus to studios already experienced in the gaming industry, which is a departure from the early days of Web3 gaming.

During that early stage, a large number of Web3 gaming companies received substantial funding despite either not having a clear plan for launching their goods or creating teams that had the proven experience needed to make it happen.

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In fact, the YOLO times of late 2021 and early 2022 are a distant memory at this point. The game development studios currently receiving funding have already shown some success in creating Web3 games.

Today venture capitalists look even further into the future, somewhere between 5 and 10 years.

At the same time, there are other AI-enabled trading bots, such as direct edge, that have expanded the investment space for venture capitalists and provided investors with a variety of investment options in terms of purchasing different digital currencies.

Crypto Gaming: The Progress To See

When we consider these increases in conjunction with the long-term trends in Web3 gaming, investors can begin to see that certain patterns are emerging that will affect the future of the industry.

The question now is what effect all wage increases will have in the coming years.

Mobile gaming will almost certainly get a lot of attention. According to a report published by DappRadar in September, hyper-informal blockchain games for smartphones have successfully transitioned more than 1.7 million gamers from Web2 gaming to Web3 gaming in just one week.

It seems likely that Web3 gameplay will gain access to the “mainstream” as a result of the changes currently taking place, and that over the next 5 years the global score of the top 100 gaming studios will include those powerful blockchain elements.

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This forecast is based on the observation that the above transformations are currently taking place.

In addition, there are a number of reliable trading support bots, such as direct edge, which allow traders to exchange their earned game points for cryptocurrency and use them for versatile use.

What comes next?

Chances are, we haven’t seen the completion of the large-scale funding rounds that have taken place in the Web3 gaming industry in recent months.

The hype cycle around Web 3 gaming has finally come to an end and the market is currently in the “build” period. This time, investors are looking for companies that have a more long-term perspective on their operations.

This shift in emphasis, coupled with the massive shifts that have taken place in the blockchain technology industry as a whole, will bring new dynamics and opportunities for developers in the P2E market in the year 2023.

To separate the wheat from the chaff, the expectations of both players and financiers will have to be raised.

When determining priorities after 2023, the quality of the work will outweigh the quantity. Those who are able to develop the most outstanding games will emerge victorious in the end. The real game has just begun NOW.

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