Merely looking at the data, one may think that gaming is in a downward spiral. However, despite dwindling numbers gaming came on top as the leading product category in Web3. In this State of Blockchain Games Q3 2025 report we look at the light at the end of the tunnel, the trends and developments that will push blockchain gaming into the mainstream. But, we’re not there yet.
It’s difficult to be optimistic about the blockchain gaming market when token prices keep dropping, projects shut down, and social media messages are all doom and gloom. However, within this Q3 2025 report in association with the Blockchain Game Alliance, you will find a shimmer of hope. Some projects thrive while the market conditions aren’t optimal, others have development teams that have managed their funds properly to overcome the hurdles of a bear market.
In State of Blockchain Gaming Q3 2025 we look at the general market conditions for gaming. After that we take a look at the blockchains that attract the most wallets, and of course we look at the dapps that attract those users. Moreover, the user intention behind the onchain engagements matters, because gaming can only thrive when true gamers participate in a Web3 economy.
Key Takeaways
- Blockchain gaming saw a 4.4% decrease in active wallets, attracting a total of more than 4.66 million daily unique active wallets.
- Throughout Q3 2025 opBNB is still the leading gaming chain with 1.05 million active wallets, but Kaia recorded the biggest growth with a 229% boost.
- Despite the lack of new gaming products, WAX is still a leader in terms of onchain activity, recording 687 million transactions.
- Gaming NFTs generated $135 million in trading volume, and among the top collections Gods Unchained and Sorare stand out.
- Investments in gaming and metaverse projects reached its highest level of this calendar year with $129 million during the quarter.
Table of Contents
1. Blockchain gaming overview
2. Gaming chains: Sei and Kaia making a splash
3. Most popular games in Q3 2025: Lumiterra stands out
4. Top Gaming NFT Collections: Sorare and Gods Unchained
5. Metaverse: Trading volumes are up among top projects
6. Gaming investments: Q3 2025 best quarter of a weak year
7. Closing words
1. Blockchain gaming overview
The third quarter of 2025 didn’t break the downward trend that we’ve been experiencing for most of the year. In the first quarter gaming attracted 5.8 million active wallets per day, and that number has been dropping ever since. In Q3 2025 blockchain gaming recorded a 4.4% decrease in active wallets, attracting a total of 4.66 million wallets per day.
Looking at the trend year over year, we see a small increase. During Q3 2024 gaming attracted 4.44 million active wallets, suggesting that the gaming industry has been stagnant. However, gaming activity dropped hard in January and February, and since then its performance has been quite consistent. In April the number dropped below 5 million active wallets per day, and since then it only dropped 10-15%.
Thanks to this resilience, gaming has once again come out on top as the most dominant product category in Web3. 25% of all active wallets engage with a gaming platform, up from 20.1% in Q2 2025.
Despite the dominance of gaming in Web3, the blockchain gaming industry still has difficulty attracting a mainstream audience. Many publishers and development studios are looking to onboard millions of gaming enthusiasts, but none of them succeeded. However, during Q3 2025 we did see some reputable projects launching their games, creating a shimmer of hope for an industry longing for mainstream acceptance.
Nonetheless, when it comes to onchain engagements, also for gaming the number of active wallets kept dropping. The various industry segments were very close to each other in May and June, but since then AI and Social dapps lost lots of traction, while gaming’s activity remained pretty stable. With an average of 4.66 million active wallets per day, gaming is leading the Web3 industry.
2. Gaming chains: Sei and Kaia making a splash
While there’s a decline in the number of wallets, within the gaming ecosystem there are plenty of new initiatives. During Q3 2025 we’ve seen Kaia and Sei Network rise to the occasion. While opBNB is still the market leader thanks to the success of World of Dypians and Seraph: In the Darkness, Sei Network has become the number two with 802,000 active wallets per day. The network managed to gain 86% thanks to the launch of a series of blockchain-powered games, surpassing Nebula from Skale Network.
Kaia managed to grow its audience 229%, attracting an average of 462,000 active wallets per day. Where the Sei Network utilized a wide variety of smaller game dapps to attract its audience, Kaia relies on the numbers brought in by gaming engagement platform KGeN.
Different is the story for Ronin Network, which grew its audience by 55% to 419,000 active wallets per day. The gaming chain has various games that attract hundreds of thousands of players per month, including tactical battle game Axie Infinity, the shooter The Machines Arena and of course the MMORPGs Lumiterra and Pixels.
Onchain activity for gaming chains
With the rise of cheaper alternatives, most gaming activity doesn’t happen on Ethereum anymore. Gaming projects decide to launch on much cheaper networks that facilitate fast and cheap transactions, think about dedicated L1 network or L2 networks built on top of another network.
When we look at the dapp transactions tracked by DappRadar, WAX stands out as the clear leader with 687 million transactions. WAX is still home to a variety of gaming dapps, but one stands out above the rest; Alien Worlds. In one month, each of the 420,000 wallets engaging with the gaming dapp are responsible for 599 transactions each on average. This places Alien Worlds among the games with the most transactions per wallet.
Gunz testnet, which is still seeing 90% of the activity of mainnet, sits in second place with 151 million transactions. Again, here one game plays a pivotal role: Off the Grid. The praised battle royale shooter is available in early access, and can be played for free. Players extract game items, and can then trade these assets on a marketplace.
The third chain we need to talk about is Sei Network. As mentioned, a variety of games has brought lots of activity to the blockchain. Most gaming dapps on Sei Network have an average of 2 to 5 transactions per wallet. However, the number of active wallets for these gaming dapps is going through the roof. Sei Network has 5 dapps that attracted over 1 million wallets in the past 30 days, including Sugar Senpei, Empire of SEI and Archer Hunter.
At the same time, smaller dapps like SunnySide Acres attract merely 20,000 active wallets. However, the wallets pushed 1.37 million transactions in the past 30 days. That’s 69 transactions per wallet. With the launch of a wide range of games, Sei Network managed to push itself up the charts.
3. Most popular games in Q3 2025: Lumiterra stands out
Looking at the number of active wallets engaging with a game, World of Dypians managed to attract the most. The MMO game has seen 135 million wallets engage with its smart contracts during Q3 2025, making it market leader by a far stretch. Pixudi follows with 25.6 million wallets, while the battle royale shooter Off the Grid completes the top three.
In the list of Top Web3 Games for Q3 2025, a few games stand out. The MMORPG Lumiterra launched on Ronin Network and attracted a total of 18.6 million wallets. That’s a huge increase of 9,451%. At the same time Token Tails grew its audience 169% to 6.85 million, while Kawaii Puzzle (built on Sei Network) closes the top 10 with 6.79 million active wallets during Q3 2025.
The games listed as the Top Web3 Games from Q3 2025 do have a diverse range of onchain mechanics. Some only use daily logins and NFT trading, while others may have entire game systems built on the blockchain. As a result, the average number of transactions per wallet heavily depends on those details.
Measured over the past 30 days, the average wallet engages with gaming dapps through a certain amount of transactions. Below we have listed the Top Web3 Games from Q2 2025 by their average number of transactions per wallet.
Alien Worlds – 598.7 txs/wallet
Off the Grid – 124.3 txs/wallet
Axie Infinity – 22 txs/wallet
Lumiterra – 15.1 txs/wallet
World of Dypians – 12.8 txs/wallet
PlayEmber – 6.9 txs/wallet
Seraph: In the Darkness – 5.3 txs/wallet
Token Tails – 5.1 txs/wallet
Pixudi – 4.8 txs/wallet
Kawaii Puzzle – 3.4 txs/wallet
Here we can clearly see that most gaming dapps require a small amount of transactions from its users. This means that those wallets only do simple tasks, such as logging in, claiming rewards or trading an NFT. Alien Worlds and Off the Grid stand out from the crowd, because these games allow users to mint or craft items, or utilize a cryptocurrency inside the game. From a Web3 perspective, the more onchain actions happen within a gaming dapp, the better.
4. Top Gaming NFT Collections: Gods Unchained and Sorare
When it comes to NFT trading, the gaming industry didn’t bring anything new to the table in Q3 2025. The top collections are still the same, but we’ve seen Gods Unchained thrive after fully migrating all its assets from Immutable X to Immutable zkEVM. As a result, the trading card game saw its NFT trading volume on Immutable zkEVM increase by 507% to $27.2 million.
With Guild of Guardians, Axie Infinity and Sorare, the top gaming NFT collections feature the usual suspects. Activity surrounding Axie Infinity could get a boost in the months to come, as the team is looking to launch Atia’s Legacy, an MMORPG within the Axie universe.
At the same time Sorare will migrate from StarkEx to Solana, which could bring additional liquidity to the already thriving fantasy sports platform. The launch of the new football season in Europe has reignited the passion for fantasy sports, bringing in new cards, new users, and 347% more trading volume. It’s these types of success stories that prove that there’s a market for blockchain-powered gaming, despite the troubling market conditions.
The success of Sorare and Gods Unchained was not enough to give Q3 2025 a significant boost. The top 15 collections have generated $135 million in trading volume. That’s less than 10% of the total $1.6 billion in NFT trading volume registered across the entire Web3 industry during Q3 2025.
5. Metaverse: Trading volumes are up among top projects
As always, we also cover the metaverse in DappRadar’s BGA Games Report. The concept of the metaverse – a virtual world where social engagement, gaming entertainment and value exchange collide – still holds up. However, since the 2021 peak interest in the metaverse has been on a decline.
Purely looking at NFT trading volumes and the number of sold metaverse NFTs, paints a bleak picture. In Q3 2025 metaverse projects have seen users trade $17 million in NFTs. That’s 55% from the second quarter. However, individual projects in the Top Gaming NFT Collections generate more trading volume than all the metaverse projects combined. To make things worse, compared with Q4 2024 the number of sold assets has halved.
However, behind these worrying numbers there’s also some positive news to tell. Top projects like Otherside, Mocaverse and Decentraland have all seen their trading volume increase. During Q3 2025 it became clear that Yuga Labs will focus on Otherside, while ditching various other IPs, including Moonbirds and HV-MTL.
At the same time, The Sandbox announced a restructuring. About 50% of the staff was laid off, and Animoca Brands stepped in to take greater control. With this new focus for The Sandbox, the team will put emphasis on onboarding new gamers. To make this easier, credit card payments are now supported. In addition, the team is working on SANDchain to support the ecosystem and build more onchain mechanics.
The last one in the list would be Decentraland, one of the pioneering metaverse projects that’s also having difficulty attracting participants and citizens on a regular basis. The Decentraland Foundation launched a new tool for group-based experiences, funding builds by the community. For the community, virtual festivals such as Art Week 2025 bring people together. The team also announced the Music Festival 2025, which will take place in November. With 1,113 sold items and $416,000 in trading volume, Decentraland is still among the top metaverse projects in Web3.
6. Gaming investments: Q3 2025 best quarter of a weak year
Investments in blockchain-powered gaming has been dwindling for the past 18 to 24 months. In Q4 2024 we’ve seen a $314 million boost, but during the first three quarters of 2025 the combined number is even lower. In 2025, the blockchain gaming industry managed to get $293 million in funding. With $129 million, the biggest chunk was raised during Q3 2025.
That means that Q3 2025 is the most successful quarter of 2025 in terms of funding raised. That shimmer of success can’t be seen separate from the general crypto market. The past few months have been a period of growth, mainly for bitcoin. Nonetheless, these developments bring excitement to the crypto industry, and – more importantly – funding.
Blockchain gaming managed to attract $129 million during Q3 2025. However, not all of it goes directly to video games. Only 53% of the funding goes to gaming projects, while the remaining investment money goes to infrastructure.
The rise of L2 networks has now ignited a new wave of blockchain networks; app chains. For example, GUNZ is the network for Off the Grid and other products from game studio Gunzilla. At the same time The Sandbox – as mentioned above – announced their own SANDchain. The success of app-specific blockchains can also be seen in DeFi, where Hyperliquid is making waves with their own HyperEVM, and Uniswap has its own Unichain.
In 2024 we’ve recorded over $1.8 billion flowing into the blockchain gaming industry. For the current calendar year we’re still at $293 million. This trend makes it likely that 2025 will end up with only 25% of the investments seen in the year before. This means that development teams can no longer rely on half-assed products to acquire funding. Instead they need to show a working product and create actual demand. Venture capital still flows, but not every shiny new idea gets the chance to flourish.
Among the biggest funding rounds of Q3 2025 we find the following projects:
- E-PAL ($30 million) – Balance.fun, a gaming platform tapping into AI and blockchain technology
- Shrapnel ($19.5 million) – Online first-person shooter built on Galachain, moving into the Chinese market
- SuperGaming ($15 million) – To expand a battle royale game and develop their own L3 network on top of Base.
7. Closing words
As we close Q3 2025, blockchain gaming stands at a crossroads: resilient amid contraction, yet hungry for mainstream breakthroughs. From Kaia’s explosive growth and Lumiterra’s meteoric rise to surging interest in app chains like SANDchain, glimmers of innovation outshine the bearish fog. Projects like Sorare and Gods Unchained remind us that true player engagement is possible, and that’s what holds the key for onchain economies. As we approach the end of 2025, one can only wonder which team is building a virtual game world that’s worth inhabiting?
