NFTs and DeFi are not the only industries that VCs invested into in 2021 and 2022
Both the DeFi and NFT industries took a massive hit in the first half of 2022, losing the major part of the capitalization and trading volume. But while the crypto industry was going crazy about monkey pictures and 20% APY, the GameFi industry felt good while the digital asset market blossomed and fell.
In Q1 of this year, venture capitalists invested more than $1.2 billion in the industry. A total of 128 companies received funding from institutional investors despite the crash of the cryptocurrency market.
VCs have been funding GameFi more than any other crypto investment subsegment.
A total of 128 companies received $1.2 billion in Q1 of this year alone. pic.twitter.com/0IaxGrTEID
— Messari (@MessariCrypto) July 10, 2022
As Messari suggests, no crypto investment subsegment received such a large inflow during the bearmarket as GameFi did. The main reason could be its nature as distinct from the cryptocurrency market, as it is not tied to the performance of assets like Ethereum or Bitcoin.
The target audience of GameFi sector is not necessarily similar to groups of people who use decentralized finance applications, or even NFTs. The majority of GameFi users are users who play mobile and browser games.
One of the most outstanding representatives of the industry known for most crypto traders and investors is Axie Infinity, which recently got hacked for $625 million because of the Ronin Network exploit.
The company successfully started a recovery of users’ funds and returned a large part of stolen funds, keeping up its image on the market.