The Speculative Frenzy is Cooling, Yet Developers Persist
April witnessed a complex landscape for blockchain gaming, characterized by dwindling user engagement and a slowdown in funding as the market increasingly turns its focus toward artificial intelligence and tangible assets. Despite these challenges, significant advancements are taking place behind the scenes. New infrastructure is being established, major publishers are ramping up their investments, and high-caliber games are set to launch soon. This report delves into the contemporary trends influencing blockchain gaming, the subtle advancements being made, changing narratives, and their implications for the future.
Current Trends and Market Dynamics
Blockchain gaming is proving its longevity as a sector vital to the advancement of Web3. However, it’s evident that user interest is shifting toward AI and real-world assets. Recent data indicates that the daily unique active wallets (dUAW) for blockchain games dropped to 4.8 million in April, marking a 10% decline from March. The once-dominant gaming segment in the decentralized application (dapp) ecosystem is now on equal footing with decentralized finance (DeFi), each holding a 21% market share, while AI is rapidly increasing its presence at 16%. Notably, the development scene remains vibrant, with teams actively creating and investments continuing to flow in. The focus is shifting from speculative “play-to-earn” models to genuine gameplay, asset ownership, and community involvement. Leading gaming platforms like opBNB are still at the forefront, with titles like World of Dypians showing significant activity across various chains.
Leading Games in April
In our monthly analysis of the top ten games by user activity, April brought little surprise, with some projects continuing to demonstrate notable progress. One standout is Off the Grid (OTG), a cyberpunk-inspired battle royale from Gunzilla Games, which made strides by activating its GUNZ blockchain on Avalanche and launching a mainnet node around mid-April. Although still in early testing, OTG is notable for being the first Web3 game available on PlayStation 5 and Xbox One Series. Speculation is rife about its imminent full release, given its innovative ecosystem model.
Axie Infinity maintained player engagement by hosting several competitions on the Ronin network, such as Axie Classic Season 9 and AXS Origins Season 13. Meanwhile, Sky Mavis is redirecting resources toward their upcoming MMORPG, Atia’s Legacy. Player anticipation for the Axie MMO remains high, with 2.5 million pre-registrations noted as of mid-March.
The action role-playing game Seraph launched its third season on April 27, bringing fresh content including new dungeons and a free season pass. Updates also introduced player-run shops and an on-chain asset income system, emphasizing sustainable play-to-earn models. Star Atlas rolled out new PvP modes, while The Sandbox continued its Alpha Season 5 with various new user-generated content games. In contrast, Cambria postponed the launch of its RuneScape-inspired MMORPG, The Paymasters, promising advance notice for the new season’s start. Gods Unchained is migrating its backend to zkEVM to enhance smart contract support and interoperability.
Developments in the Ecosystem
April marked a significant period of growth and partnerships within the blockchain gaming ecosystem, indicating a maturation of Web3 gaming. Traditional gaming companies are increasingly exploring blockchain applications, with Sega launching “KAI: Battle of Three Kingdoms,” integrating NFTs and play-to-earn mechanics into its established intellectual property. Conversely, Square Enix’s NFT initiative, Symbiogenesis, faced disappointing performance and will be winding down by July 2025. This contrast highlights the importance of creating native Web3 experiences rather than merely incorporating NFTs into existing frameworks.
Ubisoft announced a collaboration with Immutable to launch a collectible card game based on the “Might & Magic” franchise, expected to debut later this year. In another significant move, South Korean giant Netmarble announced plans to release seven blockchain games on the Immutable platform by 2025, including Tokyo Beast, which merges esports with NFTs.
Ronin, traditionally associated with Axie Infinity, is now welcoming third-party developers, expanding its ecosystem. Games like Avarik Saga are migrating to Ronin, and new applications are emerging. However, the transition has not been without challenges, as seen when developers of Ragnarok: Monster World shifted to a different chain, allegedly violating their contract.
Investment Trends and Future Outlook
Investment activity within blockchain gaming and the metaverse saw a dramatic reduction in April, with total funding reaching only $21 million—a staggering 69% drop from March. The broader economic climate continues to create uncertainty, impacting investor confidence. Nevertheless, established ecosystem funds are starting to yield results. Arbitrum’s $200 million ARB Gaming Fund, now rebranded as Arbitrum Gaming Ventures, has announced its initial investments, allocating $10 million to five promising projects.
This strategic focus on established studios rather than new independent teams signifies an evolution in investment priorities, with 66% of funds directed toward infrastructure development. This shift reflects a growing maturity among investors, who are now placing greater emphasis on sustainable models, user engagement, and real retention, instead of mere token speculation. This reset in the market presents opportunities as weaker projects are filtered out and resources are directed toward those laying a solid foundation for the future of blockchain gaming.
Anticipated Developments in May
May is expected to bring significant updates, alpha releases, and new content that could reshape the Web3 gaming landscape. Nexon’s MapleStory N, built on Avalanche’s “Henesys” subnet, is set to launch on May 15, showing promising early metrics with a million registered wallets during testing. Other titles, such as Treeverse and Illuvium, are also set to enhance player engagement through new features and updates.
Conclusion
While April did not set any records for blockchain gaming, it is a time of recalibration for the industry. As the speculative excitement wanes, developers remain active, with new games on the horizon and an expanding ecosystem. The decline in user activity and investment reflects the current market dynamics, yet initiatives like Arbitrum’s fund deployment and partnerships with established studios signal foundational progress. The industry is shifting away from unsustainable token models toward a focus on gameplay, interoperability, and genuine user retention, setting the stage for a more resilient future in Web3 gaming.
