Web3 Gaming sees ecosystem growth despite April activity slump: DappRadar

While blockchain gaming saw a decline in user activity and funding in April, the sector continues to evolve beneath the surface, according to DappRadar’s April 2025 Games Report.

Per the report, blockchain gaming recorded 4.8m daily Unique Active Wallets (dUAW) in April, a 10% drop and the lowest figure for 2025 so far. 

The sector’s share of decentralized app activity also decreased, now matching DeFi at 21%. Meanwhile, investment slowed, falling 69% month-over-month to $21m (~£15.8m).

Despite the slowdown, DappRadar analyst Sara Gherghelas emphasised that development hasn’t waned.

“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,” she observed.

Several developments within the Web3 Gaming ecosystem were recorded in April. 

Gunzilla Games launched mainnet nodes for its custom GUNZ blockchain on Avalanche for the cyberpunk battle royale, Off the Grid (OTG). This sets the foundation for its in-game economy.

On the Ronin Network, Axie Infinity sustained player engagement through its Axie Classic Season 9 competition, offering a 35,000 AXS prize pool.

The month also saw an increase in major IPs embracing Web3. 

Sega officially launched KAI: Battle of Three Kingdoms with NFT integration, while Ubisoft partnered with Immutable to bring its Might & Magic franchise on-chain.

Netmarble, via its Web3 arm Marblex, revealed plans to launch seven blockchain games on Immutable throughout 2025.

The positive trend continued into May. Earlier this week, Nexon’s MapleStory N went live on Avalanche’s Henesys subnet, which already registered over 1m wallets during its beta phase.