Web3 studio Gameplay Galaxy has secured an additional $11 million in an extended seed round, as venture capital funding for blockchain-based gaming is expected to return in 2024. 

Blockchain Capital and Merit Circle backed the additional funding, bringing the total raised in the round to $24 million. According to an Aug. 27 announcement, the funds will support the development of the studio’s flagship title, Trial Xtreme. 

Gameplay Galaxy claims to have over 300 million downloads tied to the Trial Xtreme franchise, a mobile game featuring motocross-style racing and sports. One of the series’ popular games, Trial Xtreme Freedom, is set to introduce blockchain-based ownership tracking of in-game assets in tournaments. 

“Players will also be able to craft, upgrade, own their bikes and earn tokens through their in-game experiences,” said the company. 

Venture capitalists are showing renewed interest in Web3 gaming following a long bear market. According to DappRadar, investments in Web3 gaming surged to $1.1 billion in the second quarter of 2024, making it the best quarter since 2022. Blockchain gaming continued to lead the Web3 sector, driving 28% of all decentralized app activity and attracting 2.8 million active wallets daily. 

Source: DappRadar

“We believe that Web3 represents the natural evolution of the Free-to-Play model, paving the way for the most significant transition in gaming history,” Doron Kagan, founder and CEO of Gameplay Galaxy, said in a statement.

Games leading the Web3 landscape include Pixels, with 48 million unique wallets in the second quarter, as per DappRadar. Another gaming title gathering millions of users is the Telegram-based clicker Hamster Kombat. The game reached 239 million users in just 81 days since its launch, drawing venture capitalists’ interest in the product. Hamster Kombat’s developers, however, have declined external funding to focus on the community’s needs.

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