The intersection of gaming and crypto has always been a focal point for investors, especially with crypto markets entering a bull run. The partnership between Avalanche and Terra Luna Foundation Guard (LFG), alongside insights from DappRadar’s reports, offers a compelling narrative on the trajectory of gaming tokens this cycle.

I truly believe in crypto gaming.
Onchain player ownership + player owned economy.
Interoperability. Muti chain. Transparency.
No need of black markets.
No violations of game policies.
We are so early.
— yellowpanther 💎 (@yellowpantherx) February 14, 2025

In the 2021 bull run, gaming tokens were among the most dynamic segments of the crypto market. Projects like Axie Infinity (AXS) exploded onto the scene, offering players the ability to earn through gameplay, known as “play-to-earn” (P2E).

This model attracted gamers and investors. During this period, Axie Infinity’s price soared, and gaming tokens became prominent players in crypto.

Avalanche once became a favored platform for developers creating decentralized applications (DApps), including games. The AVAX token saw significant growth, with increased adoption in blockchain games built on this chain.

By late 2021, AVAX reached all-time highs, driven by the general market euphoria and specific developments in its gaming expansions.

Following, a partnership formed between Avalanche and LFG with LFG purchasing $100 million worth of AVAX. Originally, this was intended to boost Terra’s ecosystem by diversifying its reserve assets. However, the subsequent collapse of Terra in May 2022 led to market anxiety.

Despite this, Avalanche’s decision to buy back 1.97 million AVAX tokens from LFG for $53 million in November 2024 was a strategic move to reclaim control over its token supply. This prevented potential market manipulation and also shows confidence in AVAX’s long-term value with upcoming developments in the gaming sector.

Moving into 2025, dAppRadar reports have highlighted a revival in blockchain gaming activity. January 2025 alone saw over 7 million daily unique active wallets, a 386% increase from January 2024.

This shows that the crypto gaming sector keeps developing amidst the meme coin craze. Games like “Off The Grid” on Avalanche and “Pixels” on Ronin Network are setting new standards for daily active users, proving that the gaming sector is still growing silently.

Ronin Network specializes in mobile gaming
And a new MMORPG title is coming tomorrow. Introducing @PixelHeroesMMO.
• Free to Play
• Launching on Android/iOS
• Pixel Art and Epic Boss Battles
• Play to Airdrop Campaign 🪂
Are you ready for the next Ronin adventure?👇 pic.twitter.com/eRwgA6j5tW
— StarPlatinum (@StarPlatinumSOL) October 29, 2024

This year’s bull run, catalyzed by events like Donald Trump’s re-election, has brought renewed attention to gaming tokens. Unlike previous cycles, where many gaming tokens were unproven, the sector now shows maturation in tokenomics.

Games now focus on sustainable economies where tokens have clear utility, from governance to in-game purchases.

dAppRadar notes that mainstream gaming companies’ involvement in crypto indicates a shift towards more refined, AAA games in the Web3 space, crucial for mainstream adoption.

RELATED: Is Gaming The Secret Catalyst This Bull Run?

The sentiment around gaming tokens during this bull run is very optimistic. Investors are now more discerning, looking for games with solid fundamentals, not just their speculative value.

The rise in gaming activity and the introduction of prediction markets for gaming outcomes provide new avenues for investment and engagement.

⚡️ Artyfact AI Technologies: AI Data Analysis! ⚡️
👾 Our AI-powered data analysis ensures a dynamic and engaging experience by optimizing gameplay based on player behavior. Artyfact continues evolving to deliver the best gaming adventures! #artyfact $ARTY #GameFi #Web3 #Crypto… pic.twitter.com/95dbmAwwWY
— Artyfact ⚡️ (@artyfact_game) February 18, 2025

For gamers, owning in-game assets, earning through gameplay, and playing in a decentralized environment continue to drive adoption. Gaming tokens that provide real utility, like governance rights or the ability to trade assets across games, are appealing.

Much like AI tokens, the gaming industry during the last crypto bull run in 2021 became oversaturated. The last cycle of “play-to-earn” games flooded the market, with many projects lacking depth or sustainable economies, leading to a bubble focused more on speculation than gameplay.

The crypto bull run and Web3 gaming offer opportunities for portfolio diversification. Gaming tokens are not just about the thrill of new tech but also about building ecosystems that every participant can benefit from as the user base grows.

Blockchain gaming is expected to see 50 million monthly active users in 2025, positioning gaming tokens as a strategic investment as the focus on engaging games with meaningful economic models evolves, along with blockchain’s promise of true asset ownership.

EXPLORE: Crypto Trends For Bullrun – January 2025
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Key Takeaways

• Silent effort makes the noise of success: Gaming Tokens are Coming Back.
• Blockchain Gaming Whispers Where AI Screaming Noise: what We Learn Last Cycle.