Ongoing Challenges in Web3 Gaming

According to DappRadar’s Q2 2025 report, blockchain gaming has seen a significant decline:

• User activity has decreased by 17%, indicating fewer daily unique active wallets.
• Funding has plummeted by 93% year-over-year, totaling just $73 million – the lowest figure in two years.

These trends have led to over 300 web3 games being shut down due to unsustainable tokenomics and poor user retention.

Key Points:

• Investment is now shifting towards infrastructure projects, focusing on essential technologies like real-time game engines and distribution systems.
• Despite the downturn, larger titles and established studios continue to gain traction as players migrate to well-known platforms.

The gaming market appears to be consolidating rather than retreating, with prevailing users seeking depth and sustainability in gameplay rather than speculative hype.