Investment funds for NFT projects, especially blockchain/metaverse games are continuing to increase despite the crypto crash. As reported by DappRadar, investors and VC funds poured more than $2.5 billion into NFTs just in the first quarter of 2022. The number of people interested in NFTs keeps growing even though the crypto market is facing many difficulties.
In may, Dapper Labs, the company behind the popular basketball NFT game NBA Top Shot, unveiled $725 million ecosystem fund for Flow blockchain. The leading venture capital firm a16z recently unveiled a $4.5 billion fund to support Web3 startups, projects, and developers. Along with a $600 million fund previously raised for blockchain games, a16z has now grown to $7.6 billion making it one of the biggest blockchain-focused funds in the industry.
Earlier this month, NGC Ventures also announced a plan to allocate $100 million to startups working in DeFi, NFT, metaverse, and blockchain game sectors. Many blockchain companies and crypto exchanges have started to raise their own funds. A few weeks ago, Binance Labs, the venture capital subsidiary of crypto exchange Binance, raised a $500 million fund to invest in Web3 startups. This fund was backed by many VC firms such as Breyer Capital, DST Global Partners, and other partners.
KuCoin Ventures, the leading investment arm of KuCoin Exchange and KuCoin NFT Marketplace Windvane, also launched a $100 million fund to support early-stage NFT projects and promote the development of Web3.
Mr. Victor Young, Chief Architect at Analog explains the attraction of NFTs that NFTs are still in a flourishing phase because unlike other cryptocurrencies, NFTs are not affected much by the stock market and the global economy in general. Besides, the boom of GameFi projects is also the reason why investment funds for NFTs increase sharply. As more new projects are launched providing more opportunities to earn profits, more users are interested in GameFi and NFTs. As a result, a large amount of venture capital has poured into these projects.
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