In April 2025, user activity in blockchain games fell for the first time to 5 million wallets per day, a significant decline. As for the daily decline, it was as much as 10% per day. For 2025, this level of engagement is the lowest level ever. 

Meanwhile, the share of Web3 games in the decentralized app industry has also been significantly reduced. Decentralized finance’s share flattened out at 21%, while artificial intelligence projects’ share soared to 16%.

DappRadar blockchain analyst Sarah Gergelas spoke about another trend: the significant decline in blockchain game funding. In April, it dropped to $21 million, meaning the decline was about 70%. However, some large ecosystem funds continue to show activity. For example, Arbitrum Gaming Ventures placed its first $10 million of a $200 million fund, backing projects such as Wildcard, XAI Network, and Proof of Play.

However, despite such trends, many developers continue developing and integrating their games with Web3. A similar situation is observed in iGaming, which is the fastest to adapt to market changes. For example, one of the largest developers, Spribe, continues to support the Aviator game. Despite the situation in the crypto industry, the game has only grown in popularity: all this is due to the high speed of rounds and the simplicity of the rules. There are even dedicated information sites, such as aviatorapps.in, that offer a selection of online venues with this game. 

Looking directly at blockchain projects, investors now pay attention not just to the hype around tokens but also to how projects optimize sustainable models, online marketing, player engagement, and actual player retention. In this way, weak projects are weeded out, while developers who are laying the groundwork for the next generation of blockchain games, on the other hand, can safely count on funding.

As for the big companies, Sega dropped an NFT game called KAI: Battle of Three Kingdoms, and Square Enix dropped Symbiogenesis after it flopped. Ubisoft is still in the game, having teamed up with Immutable for a blockchain-based card game called Might & Magic, which is due out later this year. The situation is thus ambiguous.

The investment space is changing. Noisy token models are getting less attention, and big publishers are succeeding when they team up with Web3 native teams. Projects are now valued for robust gameplay, real user retention, and compatibility. They can then count on funding.

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