The blockchain gaming sector experienced mixed performance in the first quarter of 2025. Daily unique active wallets in the industry fell to 5.8 million during this period, marking a 6% decline.
Overall, Web3 activity dropped to 24.6 million wallets, a modest 3% decrease from the previous quarter. Despite this slowdown, the sector still recorded a notable increase in deal volume, signaling deeper investor interest in new projects.
Blockchain Gaming Q1 2025 Sees Deal Volume Rise
The DappRadar report shows that while total funding dropped sharply, investors remain active in early-stage infrastructure plays. Investor sentiment appears cautious, yet confidence in long-term growth holds firm.
New narratives emerging include AI and social dapps that diversify the Web3 ecosystem. The report suggests a narrowing gap between decentralized finance and blockchain gaming as the industry matures.
Top Web3 Games in Q1 2025
Several top games continued to drive engagement in the blockchain gaming space. World of Dypians unveiled its 2025 roadmap in January, promising new quests and AI-enhanced gameplay mechanics.
Pixudi gained recognition after winning Season One in a showcase hosted by Supra. Age of Dino made headlines with its move to the BNB Chain for improved scalability and smoother gameplay.
Pixels boosted user identity verification through a campaign with Mocaverse early in the year. Guild of Guardians and Gods Unchained maintained strong positions as sought-after NFT game platforms.
These games and collections continue to roll out updates, form partnerships, and expand their ecosystems. Their activities have helped sustain player engagement despite a broader market slowdown.
Also Read: Sony’s Soneium And LINE Join Forces To Bring Web3 Gaming To Millions
Metaverse Performance
The metaverse segment faced a downturn in activity during the first quarter. NFT trading volume in the metaverse dropped by 28% compared to the previous quarter.
Sales numbers in this area also fell, with a decline of 37% in total transaction count. Mocaverse remained a standout project by forging strategic partnerships with leading cultural brands.
These updates included alliances with Anime Foundation, MyAnimeList, and One Football, aiming to attract millions of active users. A collaboration with the TON Foundation targeted Telegram users for casual gaming and sports.
Meanwhile, the Sandbox continued to launch virtual experiences through new artist and brand partnerships. The evolving definition of the metaverse now blends AI, VR, and connectivity innovations.
Investments Overview
Investments in Web3 gaming reached $91 million in the first quarter of 2025. This figure represents a seventy-one percent decrease from the previous quarter and a sixty-eight percent decline year-over-year.
While the funding volume fell, the number of deals increased by thirty-five percent. The rise in deal count indicates that investors are writing smaller checks but remain interested in early-stage projects.
Major funding rounds included a $20 million investment in MARBLEX from Netmarble’s gaming division. Beamable raised $13.5 million to develop decentralized backend infrastructure for online games.
The Game Company, based in Dubai, secured $10 million by combining equity and token sales for cloud gaming innovations. Strong infrastructure remains a top priority for project developers aiming to deliver scalable, high-quality gaming experiences.
The first quarter of 2025 brought both promising opportunities and distinct challenges for blockchain gaming. Even with a noticeable funding drop and decreased wallet activity, increased deal volume and ongoing investment in infrastructure signal long-term potential.
Top game titles continue to drive engagement with innovative updates and new partnerships that strengthen the ecosystem. Metaverse activities are evolving, linking closely with emerging technologies to shape future digital experiences.