A new report released by DappRadar has outlined that the web3 gaming industry has had a strong start in 2023, with $156 million raised across ten investments in January.

Among the notable developments, TreasureDAO emerged as a platform for building metaverse projects, Square Enix launched its first NFT game, and Courtside Ventures invested $100 million for its third venture capital fund focused on sports, collectibles, wellness, and gaming. The total value of investments in web3 games and metaverse projects totaled $156M.

The crypto gaming sector has also seen a rise in on-chain activity, with daily active wallet (dUAW) increasing by 1.31% to 858,621 and making up 48% of dApp activity in January. On average, the market cap for top gaming tokens has risen by 122%, with GALA leading the charge at 218%.

Additionally, trading volume for virtual worlds (experiential metaverse) experienced significant growth in January 2023, reaching $44.5 million, a 114% increase from December 2022. The success of metaverse dApps, such as The Sandbox and Decentraland, has contributed to the significant growth in trading volume for virtual worlds, according to the report.