Is blockchain gaming losing momentum — or finally growing up? April 2025 gave us a mixed picture. User activity dipped, funding slowed, and attention shifted towards AI and real-world assets. But under the surface, real progress is happening: new infrastructure went live, major publishers doubled down, and high-quality games edged closer to launch.
In this report, we explore the trends shaping blockchain gaming right now, the quiet wins, the shifting narratives, and what it all means for the road ahead.
Key Takeaways
- User activity dropped 10% in April, with blockchain gaming reaching 4.8 million daily Unique Active Wallets (dUAW), its lowest point in 2025 so far.
- Gaming dominance over the dapp industry also fell, now tied with DeFi at 21%, while AI is on the rise with a 16% market share.
- Chain-level dominance remains high for key titles: Pixudi owns 99% of Calypso (SKALE), Off The Grid has 100% on GUNZ, and World of Dypians controls 76% of Nebula (SKALE).
- Despite market headwinds, $21 million was raised across blockchain gaming, a 69% drop from March.
- Arbitrum Gaming Ventures deployed its first $10 million from the $200 million fund, backing projects like Wildcard, XAI, and Proof of Play.
Table of Contents
- Blockchain gaming overview
- April’s gaming leaders
- Ecosystem moves and partnerships
- Funding drops 69%, but smart capital flows into infrastructure
- What’s coming in May 2025
- Closing words
1. Blockchain gaming overview
We can safely say that blockchain gaming is here to stay. It remains one of the most promising sectors for bringing Web3 into the mainstream. But it’s also clear that user attention is shifting, moving away from gaming towards real-world assets and AI-driven projects.
The data backs this up. In April 2025, blockchain gaming recorded 4.8 million daily Unique Active Wallets (dUAW) — down 10% from the previous month. Gaming’s dominance over the dapp industry has also slipped. While it used to be the leading category, DeFi surged back into the spotlight thanks to the memecoin wave. Now, AI is catching up fast, claiming 16% dominance, while gaming and DeFi both sit at 21%.
Still, as the next chapters show, development hasn’t slowed. Teams are building, and capital continues to flow into the space. What we might be seeing is a healthier ecosystem — one driven less by speculative play-to-earn mechanics and more by users who have a genuine interest in gameplay, asset ownership, and community.
Let’s zoom in on the chains powering this space.
Unsurprisingly, familiar names dominate the top gaming chains list, with opBNB holding the top spot once again. To dig deeper, we looked at how much gaming dapps dominate activity on each chain, and some patterns stand out.
- World of Dypians commands 52% of activity on opBNB and 76% on Nebula (SKALE)
- On Ronin, Axie Infinity has just 33% dominance — despite being the top game, this shows Ronin is actively evolving beyond the “Axie Chain” identity (more on that later)
- Off The Grid has 100% dominance on GUNZ Testnet, which was built specifically for it. Same with Age of Dino, owning 100% of Xterio
These stats reveal something deeper: some chains are clearly built around flagship games, while others, like Ronin, are evolving into multi-title ecosystems. As competition intensifies, it’ll be worth watching which chains succeed in becoming broader gaming hubs — and which remain tied to a single IP.
2. April’s gaming leaders
Each month we check in on the top 10 games by activity, and April didn’t bring many surprises, just continued progress from some of the space’s most active projects.
Off the Grid – GUNZ Mainnet now live
Off the Grid (OTG), the cyberpunk battle royale from Gunzilla Games, took a big step forward in April. Around April 17, the team activated its custom GUNZ blockchain on Avalanche and launched mainnet nodes, setting up the core infrastructure for its in-game economy.
OTG continues in early access, but its mainnet launch signals it’s getting closer to a full release. Notably, this is the first Web3 game playable on PS5 and Xbox One Series, a milestone reached in late 2024. Gunzilla’s ecosystem model includes node rewards and revenue buybacks via the GUN token, and speculation is growing around a possible full launch in the coming months.
More details in our OTG article → https://dappradar.com/blog/off-the-grid-brings-battle-royale-on-the-chain-with-gunz-mainnet
Axie Infinity – Seasons continue
Axie Infinity kept players engaged on the Ronin Network with multiple seasonal competitions in April:
- Axie Classic Season 9 (live through late May) – 35,000 AXS prize pool
- Origins Season 13 preseason began April 22
- A postseason tournament also wrapped up for Season 12
Behind the scenes, Sky Mavis is shifting resources toward Axie’s upcoming MMORPG, codenamed Atia’s Legacy. As part of this pivot, the experimental hub “Project T” has been shut down. Interest seems strong, by mid-March, the Axie MMO had already 2.5 million pre-registrations.
Seraph – Season 3 launches
Dark fantasy ARPG Seraph kicked off Season 3 on April 27 with new dungeons, gear, and a free Season Pass. The update also introduced:
- Stall Permits (player-run shops)
- An on-chain asset revenue system, converting in-game success into token rewards
The focus remains on sustainable P2E mechanics that reward player effort and time, not just token flipping.
More game updates across the board
Star Atlas rolled out two new PvP modes:
- Gun Game – a deathmatch where kills upgrade weapons
- Zones – team-based map control gameplay
It also introduced a high-speed ship (Busan Pulse) and the Project Galia mining prototype.
The Sandbox continued Alpha Season 5 with new UGC titles (e.g., SABOTAJ) and branded experiences like Jurassic World. The season runs through May 12 and offers a $1M prize pool with SAND, NFTs, and LAND bonuses.
Cambria delayed its Season 2: The Paymasters, which was set to launch April 7. This RuneScape-inspired MMORPG runs on Blast and Ronin, and its “risk-to-earn” model requires players to stake assets for high-reward dungeon runs. Devs promise a 24h notice before the new season begins.
Gods Unchained announced a major backend migration: moving from Immutable X to zkEVM, enabling smart contracts and broader interoperability. Token bridges are expected to open by late May, and the transition will be automatic for players.
3. Ecosystem moves and partnerships
April 2025 featured a wave of ecosystem developments and partnerships, reflecting a more mature phase of Web3 gaming. From AAA publishers testing new models to chain infrastructure opening up, the space continues to evolve in strategic ways.
Traditional publishers in Web3
Mainstream game companies are still experimenting with blockchain — some with more success than others.
Sega officially launched KAI: Battle of Three Kingdoms, adding NFTs and play-to-earn mechanics to a known IP.
Meanwhile, Square Enix announced it will sunset Symbiogenesis by July 2025 due to underwhelming performance (only ~125 ETH in NFT volume and a near-zero floor price in April).
Square Enix is staying in Web3, but this outcome shows that grafting NFTs onto gameplay isn’t enough. The contrast between Sega’s partnership-driven approach and Square Enix’s solo push highlights a key lesson: Web3-native experience matters.
This April, Ubisoft announced a partnership with Immutable. They will bring the Might & Magic franchise to the blockchain space with the release of the trading card game Might & Magic: Fates. The game is scheduled to launch towards the end of this year.
Netmarble x Immutable
One of the biggest ecosystem announcements came from Netmarble, via its Web3 division Marblex. The South Korean giant plans to launch 7 blockchain games on Immutable in 2025 — including Tokyo Beast, a title blending esports with NFT mechanics.
Immutable’s zkEVM will power these games, and both sides seem bullish that this partnership can bring blockchain games to a broader audience. Marblex also rebranded with a new mascot (“Goby”) and slogan (“fun comes first”), signaling a deeper push into Web3.
Ronin goes permissionless
Ronin, once a single-game chain for Axie Infinity, officially opened up to third-party developers. April saw the results:
- Avarik Saga, originally on Arbitrum, expanded to Ronin to benefit from lower fees and a gaming-first ecosystem.
- Realms of Alurya left the Treasure ecosystem behind, and migrated to Ronin.
- The launch was supported by a Ronin Creator Program, offering RON rewards and referral perks.
- Also, Community Gaming launched a prediction market dapp (FORKAST) on Ronin.
With more titles onboarding, Ronin is shifting from an Axie-exclusive chain to a broader ecosystem built for scale. However, this also came with some troubles, because the developers of Ragnarok Monster World moved their game to another blockchain, and therefore allegedly breached a contract.
Arbitrum and custom gaming chains
Through its Orbit program, Arbitrum is enabling custom gaming subnets. One example gaining traction in April is Studio Chain — built in collaboration with Karrat and the Arbitrum Foundation.
The chain’s flagship title is My Pet Hooligan, a battle royale game with over $78 million in trading volume for its in-game assets. The game is now migrating its token (KARRAT) and gameplay fully onto Studio Chain, signaling a broader trend: devs are moving toward app-specific chains to tailor performance and in-game economics.
These milestones support the “invisible blockchain” thesis — where gameplay takes the front seat, and wallets/crypto stay behind the scenes.
4. Funding drops 69%, but smart capital flows into infrastructure
April 2025’s investment activity in blockchain gaming and the metaverse almost fell flat, but there’s a reason to be cautiously optimistic. This month the total capital raised reached only $21 million, marking a 69% decrease from March. The macroeconomic landscape isn’t helping either, with ongoing uncertainty weighing on investor sentiment.
Still, despite the low headline numbers, we’re starting to see results from previously announced ecosystem funds. One standout: Arbitrum’s $200 million ARB Gaming fund, which officially rebranded to Arbitrum Gaming Ventures, revealed its first wave of investments in early May following backend work done throughout April.
The initial $10M allocation was distributed to five projects:
- Wildcard – a Web2 card battler from Steam, now pivoting to Arbitrum
- Proof of Play – blockchain services from the developers behind Pirate Nation
- XAI Network – one of the leading gaming Layer-3 chain, built on top of Arbitrum
- Hyve Labs – multi-platform game distribution
- T-Rex – a gaming app-chain
Rather than backing brand-new indie teams, Arbitrum is betting on established studios and proven founders to ensure ecosystem growth.
It’s also worth noting that 66% of all funding in 2025 so far has gone to infrastructure. Between that, the continued entry of traditional gaming companies, and major ecosystem commitments, it’s clear that the long-term belief in Web3 gaming hasn’t diminished, but instead it matured.
Investors are now optimizing for sustainable models, player engagement, and actual retention, not just token hype. This shows that the market’s clearly in reset mode. Capital is harder to secure, but that’s not necessarily a bad thing. Weak projects are falling away, and funds are flowing into the builders who are quietly laying the groundwork for the next generation of blockchain games.
5. What’s coming in May 2025
May 2025 is packed with major updates, alpha launches, and content drops that could shake up the Web3 gaming space.
MapleStory N launches May 15
Nexon’s MapleStory N officially goes live on May 15, built on Avalanche’s “Henesys” subnet. It’s another blockchain title from a major traditional IP, and early data is strong:
- 1M wallets registered during beta
- 31.5M+ transactions processed
With item ownership baked into gameplay and a new “Reward Experience 2.0,” this could become a breakout title bringing Web2 gamers into crypto.
Treeverse Season 1
Treeverse is running its Season 1 reward campaign, featuring daily quests and leaderboards with in-game/NFT rewards. It’s a good entry point for players eyeing an MMORPG with strong art direction and community mechanics.
Gigaverse adds viral loops
Dungeon crawler Gigaverse rolled out two features aimed at retention and growth:
- Giga Juice: New energy mechanic for dungeon runs
- ReferFi: On-chain referral program rewarding 10% of referred user spend
It’s a clear signal that games are optimizing for stickiness and player-driven growth.
Illuvium expansions coming
May could bring the public launch of Illuvium: Zero and updates to the overworld beta. The ILV token is showing strength, and the team is pushing toward full release, more news is likely imminent.
Yuga Labs on standby
Nothing is confirmed, but whispers of Otherside updates are surfacing. Whether it’s another “Second Trip” or movement in Legends of the Mara, Yuga Labs often announces updates with little warning, so BAYC holders should stay alert.
Alphas and Launches to track
May could also see a new wave of titles entering the scene:
- Realms of Alurya (Ronin): A fantasy MMO with growing community hype and a potential playtest coming this month.
- The Lost Glitches (XAI Games): A cyberpunk card game with RPG elements; Binance flagged it as one to watch.
- Engines of Fury (BNB Smart Chain): A top-down extraction shooter that’s ramping up activity; a token event or update will likely happen soon.
- Pirate Nation (Arbitrum): Ongoing updates and teased new mechanics like token sinks could make May an active month on the high seas.
6. Closing words
April 2025 wasn’t a record-breaking month for blockchain gaming, and that’s okay. What we’re seeing is a space recalibrating. Speculative hype is cooling down, but the builders haven’t stopped. Games are launching. Ecosystems are expanding. Infrastructure is maturing.
The drop in user activity (-10% dUAW) and low investment numbers ($21M raised) reflect the market’s current risk appetite. But at the same time, we saw the first deployments from Arbitrum’s $200M fund, new studios joining Immutable, and Ronin opening its doors to outside developers. It’s not explosive growth, it’s foundational work.
Big publishers are still showing up (Sega, Netmarble), but the ones making progress are those who collaborate with Web3-native teams. We’re also seeing a clear shift in priorities, away from unsustainable token models and toward gameplay, interoperability, and actual user retention.
The blockchain gaming industry isn’t dead — it’s evolving. It’s moving from noise to signal. And the ones still here? They’re building what comes next.
