The Block Research discovered that funding for NFTs, gaming companies, and other entities rose 66% to $842million in August, up from $507 million the month before. Although overall venture funding fell for the fourth consecutive month, an increase in gaming and NFT funding suggest that it could be one of the first to recover from the crypto bear markets.
The Block Research reports that funding for NFT and gaming-related ventures increased 66% in August compared to the previous month.
August funding was $842 million, compared with July’s $507 million. Although overall venture funding fell for the fourth consecutive month, NFT and gaming funding increased.
This suggests that it could be one of the first to recover from the crypto bear markets.
John Dantoni, a The Block Research analyst, stated that increased interest in NFT and gaming deals is “logical” and continues previous trends like with DeFi.
Many investors were trying to catch up to the latest trend, but either didn’t have any exposure to it or wanted to increase their exposure from an on-chain perspective and regulatory perspectives.
He said that NFT marketplaces are less likely to be regulated than non-decentralized financial institutions.
Dantoni stated that blockchain-based gaming is more likely because of technological advances, infrastructure, and throughputs for L1s, L2s, and the potential for success.
Huge funding went into gaming and nfts in august
There were notable venture deals worth at least $50 million in August, including the acquisition of mobile gaming company Limit Break by Verizon Wireless for $200 million; and the Proof Collective funding NFT group with $50 million and Ready Player Me metaverse avatar creation business with $56 million respectively.
The 53 NFT and Gaming deals accounted for 38% of all crypto funding deals and the majority of pre-Series A deals in crypto venture capital funding over the last year.