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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
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.
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.
Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.
Disclaimer: Any financial and market information given on U.Today is written for informational purpose only. Conduct your own research by contacting financial experts before making any investment decisions.