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 <p class="is-style-lead">Analysts at DappRadar say the decline in funding is due to the distinct market dynamics of 2023.</p>
 <p>Web3 gaming projects <a rel="noopener noreferrer nofollow" title="raised" href="https://thebittimes.com/tag/raised.html">raised</a> $600 million in Q3 2023, which is 50% lower than in Q3 2022, according to data provided by DappRadar. Although the number of deals in the third quarter was not specified, the analysts say that web3 gaming <a rel="noopener noreferrer nofollow" title="raised" href="https://thebittimes.com/tag/raised.html">raised</a> $2.3 billion since the beginning of 2023.</p>
 <p>However, as noted by DappRadar, venture capitalists (VCs) such as Andreessen Horowitz (a16z) were not interested in gaming projects only as the significant allocation (nearly 44% of all funds) was towards investment firms this time.</p>
 <figure class="wp-block-image size-full"><picture decoding="async" class="wp-image-14203951">
   <source type="image/webp" srcset="https://cdn.thebittimes.com/images/2023/10/13/da5d4fe857aa9b2376a72295b5dcf850.webp.webp">
   <img decoding="async" width="1002" height="560" src="https://cdn.thebittimes.com/images/2023/10/13/da5d4fe857aa9b2376a72295b5dcf850.webp" alt="Web3 games raised $600m in Q3, 50% less than in 2022 - 1"> 
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  <figcaption class="wp-element-caption">
   Web3 investment cashflow breakdown | Source: DappRadar
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 <p>Despite this investment sentiment shift, DappRadar says that investors’ strategy “underscores the confidence and commitment VCs hold for the future of this domain.”</p>
 <div class="cn-block-related-link">
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 <p>This shift also coincides with other sectors, such as social decentralized applications gaining traction, which may pose challenges for web3 gaming startups struggling to find a silver bullet to gain more users and evolve business models, according to analysts.</p>
 <figure class="wp-block-image size-full"><picture decoding="async" class="wp-image-14203966">
   <source type="image/webp" srcset="https://cdn.thebittimes.com/images/2023/10/13/34246ce0ae32c944915b8441d13e6296.webp.webp">
   <img decoding="async" width="1233" height="737" src="https://cdn.thebittimes.com/images/2023/10/13/34246ce0ae32c944915b8441d13e6296.webp" alt="Web3 games raised $600m in Q3, 50% less than in 2022 - 2"> 
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  <figcaption class="wp-element-caption">
   On-chain activity between different sectors by their category | Source: DappRadar
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 <p>On the on-chain level, the activity around gaming projects has been falling steadily for the last four quarters, as in Q3 2023, gaming projects generated only 35% of all activity across various blockchain networks.</p>
 <p>Although this figure is considerably higher than what non-fungible tokens (NFTs) or social applications could generate, it is a far cry from Q4 2022, when gaming projects witnessed a 50% dominance in unique active wallets.</p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/web3-games-raised-600m-in-q3-50-less-than-in-2022-tbt66256.html">https://thebittimes.com/web3-games-raised-600m-in-q3-50-less-than-in-2022-tbt66256.html</a></p>

Web3 games raised $600m in Q3, 50% less than in 2022

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