Blockchain gaming experienced a significant decline in April 2025, as daily active wallet users dropped 10% to 4.8 million—the lowest point of the year—according to reports from DappRadar. This reduction reflects a broader shift in user interest from speculative token-based gaming models toward applications utilizing artificial intelligence and infrastructure projects. AI dApps saw a 26% increase in users, contrasting with the faltering blockchain gaming sector.
Investment in blockchain gaming also declined sharply, with funding falling nearly 69% month-over-month to $21 million in April. Despite this downturn, select ecosystem funds, such as Arbitrum Gaming Ventures, continue supporting promising projects like Wildcard, XAI Network, and Proof of Play. Investors are prioritizing sustainable models emphasizing player engagement and retention rather than token hype.
Major gaming companies remain cautiously involved. Sega launched an NFT game titled KAI: Battle of Three Kingdoms, while Square Enix withdrew from a failed blockchain project. Ubisoft maintains involvement with a strategic partnership with Immutable to deliver a Might & Magic blockchain card game later in the year.
Innovation persists despite lower user numbers. Examples include Mogul, a blockchain game on the Sui blockchain that gamifies movie box office predictions, already attracting over 400,000 registrants. New niche-focused projects like India’s upcoming PlayPe, a cricket-based skill game, and South Korean Nexon’s Web3 version of MapleStory N launched on May 15, highlight a trend towards integrating gameplay with real-world themes and enhancing user experience through features like NFT lending.