Blockchain Gaming Could Soon Overtake DeFi - Report

Blockchain gaming has kicked off 2025 with staggering momentum, recording over 7 million unique active wallets (UAW) daily—a 386% surge compared to January 2024, according to a new DappRadar report. The data signals that Web3 gaming is not only surviving but thriving, despite broader market fluctuations.

Industry analysts attribute this growth to layer-2 advancements, AAA collaborations, and evolving token economies, setting the stage for a transformative year in blockchain gaming. 

Let’s dive into the key trends shaping this space.

Web3 Gaming Gains Traction as the Industry Matures

For years, blockchain gaming has faced skepticism, often dismissed as a niche sector driven by speculation rather than genuine player engagement. However, the latest numbers tell a different story.

According to DappRadar analyst Sara Gherghelas, blockchain gaming is now entering a phase of maturation, driven by:

• Scalable Layer-2 solutions reducing transaction fees and improving in-game performance.

• Mainstream gaming studios embracing Web3, such as Gunzilla Games’ Off The Grid.

• Refined token economies, offering sustainable in-game rewards beyond speculation.

While January 2025 saw a slight 10% dip in activity compared to December 2024, this was expected after the holiday season. The long-term trend reportedly remains overwhelmingly bullish, with on-chain gaming activity tripling year-over-year.

Blockchain Gaming Nears DeFi in Market Dominance

Traditionally, Decentralized Finance (DeFi) has been the dominant sector in blockchain activity. However, the gap between gaming and DeFi is now just 1%, and experts predict gaming could soon overtake DeFi as the leading blockchain use case.

This shift is being fueled by AI-powered gaming innovations, allowing for smarter NPCs, dynamic gameplay experiences, and improved user engagement. Some examples are:

• Parallel Colony—a strategy game integrating AI-driven non-player characters.

• Nifty Island—a user-generated content platform integrating AI agents.

• Blocklords & ChronoForge—MMO and fantasy games leveraging AI to enhance gameplay.

Top-Performing Blockchains in Web3 Gaming

The blockchain gaming boom isn’t limited to one network. Several Layer-1 and Layer-2 blockchains have emerged as leaders in on-chain gaming activity, with notable growth in:

1. opBNB

Leading projects:

• World of Dypians—A metaverse game combining RPG elements with DeFi staking mechanics.

• Seraph in the Darkness—A fantasy RPG gaining significant traction.

2. Matchain

Key contributor:

• LOL Gamification Platform, fueling engagement through innovative reward structures.

3. Aptos

A rising force in blockchain gaming, with notable projects including:

• KGeN—A gamified engagement platform.

• Slime Revolution—A social NFT game with play-to-earn mechanics.

4. Polygon

Polygon rebounded strongly in January 2025, doubling its on-chain gaming activity due to:

• QORPO WORLD—A dynamic Web3 metaverse.

• Planet IX—A strategic land-based NFT game.

5. SEI, ImmutableX, and Nebula (on SKALE)

These ecosystems maintained stable engagement, proving their sustainability in the Web3 gaming space.

Meanwhile, emerging gaming networks like ZetaChain, Oasys, Kroma, and Mantle Network are also gaining traction, further diversifying the blockchain gaming landscape.

The Biggest Web3 Games Leading the Charge

1. World of Dypians

• Unveiled a 2025 roadmap, featuring AI-driven gameplay improvements, NFT character generation, and a Crypto Museum launch.
• Plans for PvP, loot boxes, and in-game trading in Q4 2025.

2. Age of Dino

• Integrated into Xterio Ecosystem, offering new in-game rewards and alliance warfare mechanics.
• Now available on Google Play, increasing mainstream accessibility.

3. SERAPH: In The Darkness

• Conducted a successful Token Generation Event (TGE) in January 2025.
• Launched NFT staking events with a 2M SERAPH token prize pool.

4. Pixudi

• A rising blockchain board game blending NFT ownership with competitive mechanics.
• Upgraded its backend API for future board generation and game expansion.

5. Off The Grid

• Introduced Battle Pass tiers with exclusive items like the Influencer Shotgun.
• Partnered with Discord for a quest-based reward system.

6. KGeN

• Launched Proof of Gamer (POG) NFTs, allowing users to own and monetize their gaming identity.
• Announced rKGEN, a non-transferable reward token for future staking.

Investment in Web3 Gaming: A Slow Start to 2025

Despite record user growth, investment in blockchain gaming slowed in January 2025, with only $16 million raised—a sharp decline from December’s $222 million. However, experts suggest this isn’t a sign of weakness but rather a shift toward deploying previously raised capital into existing projects.

Notable investments include:

• Pixion secured $4.9 million to develop Fableborne, a mobile-first RPG.

• BeraTone raised $2 million to expand its Web3 farming and life simulation game.

• ZKcandy, a ZKsync-powered Layer-2 blockchain, raised $4 million to support blockchain gaming.

• Hyve Labs raised $2.75 million to develop a gaming rollup integrating with social platforms like Telegram and Discord.

2025: The Year Blockchain Gaming Goes Mainstream?

With 7 million daily active wallets, blockchain gaming now accounts for 26-29% of all blockchain activity, fluctuating alongside the rise of DeFi. Bitcoin’s all-time high of $103,847 has also contributed to increased liquidity, fueling new interest in blockchain-powered games.

Meanwhile, DappRadar’s 2024 Blockchain Gaming Report highlighted several key trends:

• Web3 gaming hit 7.4 million daily active wallets in 2024, marking 421% growth YoY.

• ImmutableX outperformed Ethereum in NFT trading volume, with $330 million in transactions.

• 1,600+ new blockchain games launched in 2024, signaling continued innovation.

According to the experts, with AAA partnerships, AI integration, and expanding Layer-2 adoption, 2025 could be the year Web3 gaming truly goes mainstream.