Key points:
- Blockchain gaming daily active users dropped 10% in April 2025 to 4.8M — hitting yearly low.
- Web3 gaming now shares equal market share with decentralized finance (DeFi), with 21%, while AI dApps are gaining traction (16%).
- Funding fell sharply to $21M in April (down 69% MoM)
Blockchain gaming is facing its most challenging month in 2025, as daily active wallets dipped below the 5 million mark for the first time this year. According to DappRadar, April saw a 10% drop in unique active wallets, falling to 4.8 million, a yearly low for the sector.
Web3 gaming’s market share has also declined, now sitting at 21%, equal to decentralized finance (DeFi), while artificial intelligence dApps gained ground, climbing to a 16% share as shown below.
Investor sentiment mirrored the slowdown. Funding for blockchain gaming and metaverse projects dropped nearly 70% in April, totaling just $21 million. This sharp decline follows $69 million raised in March. Still, some ecosystem players remain active. Arbitrum Gaming Ventures deployed its first $10 million from a $200 million fund into titles like Wildcard and XAI Network.
Despite the slump, analysts remain cautiously optimistic. “Capital is harder to secure, but that’s not necessarily a bad thing,” said DappRadar’s Sara Gherghelas. “Weak projects are falling away, and funds are flowing into builders who are quietly laying the groundwork for the next generation of blockchain games.”
Big-name gaming publishers continue to experiment. Ubisoft is teaming up with Immutable for a Might & Magic blockchain card game, while Square Enix and Sega have seen mixed results with their NFT ventures. As the market resets, sustainable models and native Web3 teams appear best positioned to lead the next phase of blockchain gaming.
