The blockchain gaming sector experienced a significant influx of investment capital in April, securing $988 million in funding.

While the first quarter of 2024 saw a cautious approach with $288 million raised among blockchain gaming startups, the beginning of the second quarter signaled a new shift in investor sentiment.

According to data compiled by DappRadar, April witnessed an unprecedented influx of capital into the web3 gaming sector, reaching $988 million and setting a new record since January 2021. DappRadar blockchain analyst Sara Gherghelas noted that the investment surge in April “has already exceeded the entire second quarter of 2023, which was the best-performing period of that year with $973 million.”

This influx of capital comes at a critical time for the gaming industry, which has experienced considerable turbulence, including 20,000 layoffs over the past eighteen months.

Gherghelas pointed out that 89% of the funds were directed towards investment firms, 7% supported infrastructure, and 5% went to web3 games. A significant highlight of this investment wave was a $600 million games fund launched by Andreessen Horowitz as part of a larger $7.2 billion fundraising effort.

DappRadar emphasized that the latest fund continues a16z’s commitment to the gaming sector, totaling $1.2 billion dedicated solely to gaming ventures since their initial $600 million raised in May 2022.

In Q1, the sector secured $288 million in funding, marking a 57% decrease compared to Q4 2023. At the time, DappRadar said the focus of those investments was largely on web3 games and infrastructure, highlighting a period of “foundational building aimed at enriching the web3 gaming ecosystem.”

For more updates on the latest trends in blockchain gaming and other cryptocurrency news, keep exploring Global Crypto News.

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