The blockchain gaming sector experienced a noticeable dip in activity last April, yet experts suggest the overall ecosystem is growing stronger and evolving into a more sustainable space. According to DappRadar, a leading analytics platform in the blockchain world, while user engagement and investment in crypto gaming slowed down, the industry is far from fading away — it’s simply transforming.
Sara Gherghelas, an analyst at DappRadar, shared insights in their April Games Report that daily active users in blockchain gaming dropped by 10%, hitting a new low for 2025 with approximately 4.8 million unique active wallets. Gaming’s dominance within decentralized applications has also shifted, now standing on equal footing with decentralized finance (DeFi), each claiming around 21% of the market share.
Despite these numbers, Gherghelas emphasized that the narrative of a dying blockchain gaming industry is misleading. “It’s not dead — it’s evolving. The sector is moving from noise to signal,” she said, pointing to significant infrastructure developments, commitment from major publishers, and the emergence of high-quality games nearing launch. This signals a transition from speculative hype to a foundation built on genuine player engagement, asset ownership, and community building.
One of the key takeaways from the report is that investment activity in blockchain gaming dropped sharply in April, down 69% compared to March, totaling $21 million. This contraction is attributed to multiple factors, including a broader shift among investors and users toward real-world assets and artificial intelligence projects. Additionally, ongoing economic uncertainty has made it tougher for startups in the space to secure funding.
Gherghelas noted that this reduction in funding isn’t necessarily negative. Instead, it reflects a healthy market correction where weaker projects are exiting the scene, and investment is focusing on builders who are laying down the groundwork for next-generation blockchain games. “Investors are optimizing for sustainability, player engagement, and retention — not just token-driven hype,” she explained. This realignment demonstrates the market’s reset and maturation phase.
Further highlighting this shift, Gherghelas pointed out that 66% of all blockchain game funding in 2025 so far has been directed toward infrastructure development. This trend underscores that the sector is building a more solid foundation rather than chasing quick, speculative gains.
Big-name gaming companies remain active in exploring blockchain’s potential. Ubisoft, for example, continues its partnership with Immutable, while Sega has integrated NFTs and play-to-earn features into its title KAI: Battle of Three Kingdoms. These moves by mainstream players suggest confidence in the long-term promise of blockchain technology in gaming.
Gherghelas concluded by stressing that April 2025’s subdued numbers aren’t a cause for alarm. Instead, the industry is recalibrating — speculative frenzy is cooling off, but the core creators and innovators remain committed. “Games are launching, ecosystems are expanding, and the infrastructure is maturing,” she said. This signals a blockchain gaming world shifting toward lasting value and deeper user engagement, setting the stage for a more robust future.
