Despite the crypto collapse, VCs are still investing billions in blockchain gaming – Bitcoin (BTC/USD), game – Benzinga

Crypto and blockchain-based assets have had an incredibly turbulent year. Bitcoin BTC/USD is down 74% in price from its all-time highs, and OpenSea daily non-fungible token (NFT) volume is down 97% from its previous records. Nonetheless, this hasn’t stopped venture capitalists (VCs) from investing billions in the blockchain-based gaming market. In 2022, VCs and angel investors invested over $3.4 billion in the blockchain gaming (GameFi) space, including $534 million in October and November alone. This is surprising given the overall decline in not only the crypto and stock markets, but also a sharp drop in VC investments overall. Why It Matters: Investments from venture capitalists can often be a strong indicator of future trends, which can provide insights into good industries to invest in as they gain momentum. For example, startup Gameflip collects on StartEngine — meaning anyone can invest — and has raised over $10 million from Silicon Valley VCs to facilitate its gaming and blockchain-based asset marketplace. This could be due to the increasing trend of mainstream adoption of NFTs in gaming. Most notably, GameStop Corp.’s gaming and collectibles store GME NFT. has been slowly gaining momentum with a volume of over US$2 million in the past month alone. The gaming marketplace also showcases 20 blockchain-based games. To keep up with the latest on top startup investing, subscribe to Benzingas Startup Investing & Equity Crowdfunding NewsletterWhile VCs are still pouring money into the space, it’s certainly not immune to volatility. For example, top mainstream titles like Axie Infinity and The Sandbox, which once dominated the market and the news cycle, are no longer even among the top 10 most active games on the market, according to a study by CoinMarketCap. Not only are game-fi investments generally staying strong, but they are also outperforming investments within the blockchain industry. For example, in 2021, GameFi and the Metaverse accounted for about 11.54% of all funds going to blockchain-based companies. In 2022, that figure is 17.64%, which means they are the top investment-based trends for 2023. Some other growing trends are gaming marketplaces and infrastructure like Gameflip and GameStop, rising from around 3.18% to 9.23%. Learn more about Benzinga’s startup investments.

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