The blockchain gaming sector experienced a notable slowdown in April 2025, with user activity and funding hitting new lows for the year. However, according to the latest report from DappRadar, the ecosystem is not in decline but instead undergoing a period of healthy maturation and strategic realignment.
Daily unique active wallets (UAWs) in blockchain games fell by 10% last month, reaching a low of 4.8 million, marking the weakest user engagement since the start of the year. Gaming’s dominance within the broader decentralized app (dApp) landscape also slipped, now sharing equal footing with decentralized finance (DeFi) at 21%.
🎮 Is blockchain gaming losing momentum?
April saw a 10% drop in daily UAW as focus shifted to AI. But under the surface, progress is real – new infra, key launches & big games incoming.
Read the full April Games Report or explore key highlights below 👇https://t.co/9Gc13XWPbh
— DappRadar (@DappRadar) May 15, 2025
Despite the dip in numbers, DappRadar analyst Sara Gherghelas says the sector is evolving beyond its play-to-earn roots.
“The blockchain gaming industry isn’t dead — it’s evolving. It’s moving from noise to signal,”
she remarked in the April Games Report. According to Gherghelas, the current trend reflects a transition from hype-driven growth to a focus on meaningful user engagement, gameplay quality, and sustainable infrastructure.
Investment in blockchain gaming also dropped sharply, with April’s funding plunging 69% from March to just $21 million. Analysts attribute this drop to waning interest in speculative models and shifting investor focus toward emerging sectors like artificial intelligence and real-world asset tokenization.
“The market is clearly in reset mode,” said Gherghelas, noting that capital is now flowing into projects with long-term viability rather than quick gains. She highlighted that 66% of all blockchain gaming funding in 2025 has been allocated to infrastructure—a sign of the industry’s move toward scalability and user-centric design.
While some weaker projects are phasing out, major publishers and developers are pushing forward. Ubisoft recently partnered with Immutable, and Sega integrated NFTs and play-to-earn features into its title KAI: Battle of Three Kingdoms, underscoring continued mainstream interest.
Meanwhile, a different report indicated that DApps are rapidly gaining ground in the Web3 ecosystem. Soon to challenge the dominance of Gaming and DeFi.
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