Blockchain gaming projects have struggled to attract funding this year compared to 2024, but analysts argue there’s a sliver of hope as studios release new games aimed at tapping into the mainstream gaming audience. In Q3, the blockchain gaming industry saw $129 million of venture capital flow in, its strongest quarter this year, bringing the total for the year so far to $293 million. However, the total is only a fraction compared to last year. In 2024, DappRadar recorded over $1.8 billion flowing into the blockchain gaming industry, and 2025 is so far on track to only attract 25% of the previous year’s total. DappRadar’s head of content, Robert Hoogendoorn, said the recent Q3 uptick was also likely influenced by a surge in the wider crypto market. Investments in blockchain gaming saw a bump in Q3 compared to previous quarters this year. Source: DappRadar “That shimmer of success can’t be seen separate from the general crypto market. The past few months have been a period of growth, mainly for Bitcoin,” he said in the State of Blockchain Gaming Q3 report released on Thursday. Investors are more discerning Hoogendoorn said this “means that development teams can no longer rely on half-assed products to acquire funding.” “Instead, they need to show a working product and create actual demand. Venture capital still flows, but not every shiny new idea gets the chance to flourish.” In March, Sky Mavis co-founder Jeffrey Zirlin shared a similar opinion, telling Cointelegraph that crypto gaming investors are no longer blindly throwing funds into “Axie killers” that fail to deliver. The three biggest funding rounds for the quarter saw developer E-PAL attract $30 million for its gaming platform, while first-person shooter Shrapnel got $19.5 million, and India-based studio SuperGaming scored $15 million to expand its battle royale game and develop its own L3 network on top of Base. Related: Crypto gaming has mixed Q1 as deals jump, investment totals dip: DappRadar “Some projects thrive while the market conditions aren’t optimal, others have development teams that have managed their funds properly to overcome the hurdles of a bear market,” Hoogendoorn added. Mainstream adoption provides a shimmer of hope Mainstream adoption could provide some new blood for the industry, said Hoogendoorn, but at the moment, there has been some “difficulty attracting a mainstream audience,” and studios hoping to onboard millions of gaming enthusiasts are having limited success. “However, during Q3 2025, we did see some reputable projects launching their games, creating a shimmer of hope for an industry longing for mainstream acceptance,” Hoogendoorn said. “As we close Q3 2025, blockchain gaming stands at a crossroads: resilient amid contraction, yet hungry for mainstream breakthroughs.” Online data platform Statista estimates that there are over 2.7 billion active gamers globally, representing a massive market for blockchain-based games. Magazine: Hong Kong isn’t the loophole Chinese crypto firms think it is