VCs – In the first half of 2022, the DeFi and NFT industries both suffered tremendous losses in terms of capitalization and trading volume.
But whereas the cryptocurrency sector was enthralled by monkey photos and 20 percent annual percentage yields, the GameFi sector was jubilant as the value of digital assets rose and collapsed.
Venture capitalists (VCs) made more than $1.2 billion in industrial investments in Q1 of this year
Despite the collapse of the bitcoin industry, institutional investors provided investment to 128 startups in total.
No crypto investment subsegment saw such a significant inflow during the bearmarket as GameFi did, as suggested by Messari. Its character as distinct from the cryptocurrency market—where it is unrelated to the success of assets like Ethereum or Bitcoin—could be the primary factor.
The target market for the GameFi sector may not be the same as those that utilize NFTs or even decentralized finance applications. Gamers that use mobile devices and web browsers make up the majority of GameFi users.
Axie Infinity, which was recently compromised for $625 million due to the Ronin Network vulnerability, is one of the most notable representations of the sector known to most crypto traders and investors.
In order to maintain its reputation in the market, the company successfully began a recovery of user cash and restored a substantial portion of the stolen monies.
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