Inside GameFi: $1.1B poured into blockchain gaming in Q1 |

One of the biggest events in Q1 was undoubtedly GameFi, a $50M blockchain-powered gaming startup that raised its ICO on January 20th. With games like CryptoKitties and Magic: The Gathering doing so well last year, investors are hoping to ride this wave all the way through 2019. Though not without competition – there’s no shortage of new projects looking to make their mark in the space!

The “gamefi blockchain” is a decentralized gaming platform that has seen $1.1B poured into the market in Q1. The company’s recent success has been attributed to its focus on providing a fair and level playing field for gamers.

Every day, over a million users actively engage in the GameFi market, playing the thousands of games that are now available and generating demand for dozens of new ones that are released virtually every week.

The sheer number of players and overall number of games available on the market demonstrates that interest in this relatively young but rapidly developing section of the crypto business is rising.

However, there is another statistic we can look at to evaluate how GameFi is seen by the institutional crypto industry: financing.

In this series of papers, we examine one of the crypto industry’s fastest-growing areas and the money it got in Q1 2022.

Taking a look at GameFi’s financing

The GameFi got $1.13 billion in financing during the first quarter of 2022, according to a joint analysis by Footprint Analytics and DeGame. This investment reflects an increase of 194.19 percent year over year, and an increase of 18 percent above the quarterly average funding level of $954 million in 2021.

Last quarter, GameFi experienced a higher number of investment rounds than in prior quarters. The 103 financing rounds it witnessed in the first three months of the year reflect an increase of 139.54 percent above the quarterly average of 43 raised in 2021.

However, the $1.1 billion was a 40.78 percent drop from the sector’s total financing in the fourth quarter of 2021, when it reached its greatest level ever – $1.9 billion.

Inside GameFi: $1.1B poured into blockchain gaming in Q1 |Volume of GameFi investment and fundraising rounds from Q1’21 to Q1’22 (Source: Footprint Analytics)

In terms of the types of projects that received the most financing, gaming platforms topped the way with $551 million in Q1. This is barely under half of the money obtained by the GameFi sector last quarter, when independent games got $287 million, or 25.5 percent of total funding.

Inside GameFi: $1.1B poured into blockchain gaming in Q1 |GameFi funds projects based on their kind (Source: Footprint Analytics)

Independent games, on the other hand, took the lead in terms of total fundraising rounds. GameFi saw a total of 103 fundraising rounds last quarter, with 63 of them being investments in independent games. Gaming platforms, on the other hand, garnered slightly over 26% of the total number of financing rounds, while the metaverse received 4.85%.

Inside GameFi: $1.1B poured into blockchain gaming in Q1 |GameFi’s financing rounds are organized by project category (Source: Footprint Analytics)

Despite this, gaming platforms got an average of $20.4 million each financing round, compared to $4.55 million for independent titles. The number of financing rounds and the total amount of investment received by metaverse, guild, and e-sports ventures were all in the single digits last quarter.

The majority of the GameFi market’s fundraising rounds were seed rounds, however strategic rounds garnered more money overall. Seed rounds accounted for 57.3 percent of all investment rounds, or 59 in total, according to Footprint Analytics’ research.

Inside GameFi: $1.1B poured into blockchain gaming in Q1 |Total rounds of fundraising by category (Source: Footprint Analytics)

Seed rounds, on the other hand, accounted for just 20.76 percent of the total amount of investment in the industry, with an average seed round funding of just under $5 million per project. Strategic rounds, on the other hand, accounted for 52.4 percent of overall fundraising.

Inside GameFi: $1.1B poured into blockchain gaming in Q1 |Total amount of money raised by kind (Image courtesy of Footprint Analytics)

Polygon was the most successful in terms of both the number of fundraising rounds it received and the overall amount of money it earned. In Q1, the chain garnered $71.4 million in investments, followed by Solana’s $43.6 million and Ethereum’s $34.5 million.

Polygon is tied for top place with Ethereum in terms of the number of financing rounds it has received, with both chains getting money in 11 different rounds. Last quarter, Solana came in second with nine financing rounds, followed by Binance Smart Chain and GameFi, all of which got seven rounds.

The average investment for blockchain games announced on Polygon was $6.49 million per project.

Inside GameFi: $1.1B poured into blockchain gaming in Q1 |The distribution of funds by chain (Image courtesy of Footprint Analytics)

The $1.1 billion in investments are distributed in an unbalanced manner. While only nine projects received over $15 million in funding last quarter, half of the entire funding amount was distributed to just two projects—Animoca Brands and Immutable. Animoca Brands, a project platform, raised $358 million in Q1, making it the biggest fundraising round in the GameFi sector. Immutable secured $200 million in funding, while another project platform, Loco, came in third with $42 million.

Only three of the nine initiatives are independent games, with Fan Controlled Football (FCF) receiving the most financing at $40 million. Both games, Crypto Unicorns and MetalCore, secured investment of $26 million and $15 million, respectively.

Inside GameFi: $1.1B poured into blockchain gaming in Q1 |The following are the top nine GameFi projects in terms of money received (Source: Footprint Analytics)

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