The Web3 gaming sector is encountering tighter investment conditions, with investors now favoring projects that exhibit sustainability over those centered on hype. Sky Mavis co-founder Jeffrey Zirlin noted that while investment in this space has not entirely ceased, investors are now discerning, no longer inundating the market with funds for projects labeled ‘Axie killers’ that underperform. This is echoed by Gunzilla Games’ Theodore Agranat, who described the capital flow as a ‘game of musical chairs’ with no new money entering the space. Despite prevailing uncertainties, noteworthy exceptions exist, such as Fableborne, which saw significant oversubscription. Overall, the shift has led to a focus on traditional gaming metrics, stressing the importance of engaging content, user retention, and robust in-game economies. Experts agree that while the hype-fueled phase of rapid fundraising may be diminishing, capital is still available for projects that successfully integrate Web3 features to enhance player experiences rather than solely focusing on financial gain.

Source 🔗