Investments in the crypto gaming sector surged to $297 million in July, a significant increase from June’s $68 million, according to a report by DappRadar and the Blockchain Game Alliance. The report reveals that 63% of July’s investment went into infrastructure development, indicating the industry is still in its early stages. This surge suggests renewed interest and confidence in the crypto gaming space after a dip in June, which some speculate was due to regulatory uncertainties involving exchanges like Binance and Coinbase.

Notable investments in July include Animoca Brands investing $30 million in the crypto “super app” Hi, and Inworld AI raising over $50 million for AI-driven in-game characters. Despite the increase in crypto gaming investments, the report also highlighted a decline in metaverse NFT sales and trading volume. VR-based games with extensive open worlds (virtual reality) experienced a year-low of just $5.6 million in monthly traded volume with less than 11,000 sales in July. This in sharp contrast to the massive hype of the 2021 metaverse craze.

The report emphasizes that while short-term fluctuations in investment and NFT trading volume can occur, the long-term outlook for the crypto gaming industry remains positive, given its alignment with blockchain technology’s potential and the growing interest in virtual experiences. So all in all there is definitely innovative things on the horizon for crypto gaming that gamers should keep an eye on.