In April 2025, blockchain gaming experienced a significant drop in user activity, falling below 5 million daily active wallets for the first time that year. The number of daily active users declined by 10%, reaching 4. 8 million unique active wallets, marking the lowest level of engagement in the sector so far in 2025. Data from DappRadar indicates that the share of web3 gaming within the decentralized app industry also slipped, now tied with decentralized finance at 21% each, while artificial intelligence projects surged to capture a 16% market share. Sara Gherghelas, a blockchain analyst at DappRadar, highlighted a steep fall in funding for blockchain gaming, which dropped nearly 70% from March to just $21 million in April. Nevertheless, some major ecosystem funds remain active—Arbitrum Gaming Ventures, for example, deployed $10 million from its $200 million fund, supporting projects like Wildcard, XAI Network, and Proof of Play. “Investment activity in blockchain gaming and the metaverse in April 2025 nearly came to a halt, with total capital raised at only $21 million—a 69% decrease compared to March, ” Gherghelas stated. She further explained that investors are now “optimizing for sustainable models, player engagement, and actual retention, not just token hype, ” describing this phase as a market “reset mode. ” “Although capital is more difficult to secure, this isn’t necessarily negative, ” Gherghelas added. “We are seeing weak projects drop out, while funds are being directed to builders who are quietly laying the foundation for the next generation of blockchain games. ” Despite declining metrics, prominent gaming companies are still exploring blockchain.

The results are mixed: Sega launched an NFT game called KAI: Battle of Three Kingdoms, whereas Square Enix abandoned Symbiogenesis after its failure. Meanwhile, Ubisoft continues its involvement by partnering with Immutable for a Might & Magic blockchain card game expected later this year. Gherghelas notes that leading publishers remain interested, especially those collaborating with web3-native teams. She also points out a shift in the industry’s priorities—from hype-driven token models toward strong gameplay, interoperability, and genuine user retention.