Solana Ventures, Lightspeed Venture Partners, and FTX have announced the formation of a $100 million gaming fund.

For gamers, the convergence of blockchain technology, cryptocurrencies, and gaming is bringing about a new world. Some of the most well-known blockchain venture capital firms have launched GameFi, a new investment fund focused to Web 3 gaming, which may pave the way for a profitable business in which cryptocurrency and blockchain merge with traditional gaming.

Solana Ventures, Lightspeed Venture Partners, and FTX, a derivatives exchange, launched a $100 million GameFi ecosystem fund on Friday. According to the firms, the cash would be used to invest in game studios, technology companies, and other initiatives "at the nexus of blockchain and gaming."

Amy Wu, a partner at Lightspeed Venture Partners, highlighted gaming as a huge potential to "bring the next billion people to Web 3," a broad term for a more decentralized internet. Epic Games, Wintermute, FTX, and Offchain Labs are among the late-stage gaming and cryptocurrency firms in which Lightspeed has invested over $300 million.

According to gaming statistics company Newzoo, the worldwide gaming sector generates well over $100 billion in yearly revenue – a figure that is predicted to surpass $200 billion in the next two years. Blockchain and cryptocurrencies are quickly blending with the game industry, resulting in new user experiences and revenue streams. GameFi is a wide word that defines the financialization of gaming using DeFi and nonfungible tokens as a result of this junction.

GameFi is also gaining steam as a notion in the "metaverse," a future form of the internet that combines virtual reality, social networking, and commerce. Sanctor Cash, which recently raised $20 million, and Huobi Group, which just announced a $10 million fund, are two investment funds that have devoted capital to this burgeoning industry.

"The metaverse is a hypothetical digital environment that individuals develop identity, reputation, make friends, play, and transact in," Amy Wu asked about the metaverse's long-term value proposition. She went on to say:

"It will be extremely helpful if it becomes even a tenth as significant as our offline lives. As a result, both Web 2 and native Web 3 firms are attempting to implement this. People spend hours every day playing games like Fornite and Roblox, thus I believe the metaverse will emerge from one of them."

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