Blockchain Gaming Hits 2025 Low as User Activity Declines

Blockchain gaming faced a significant downturn in April 2025, with daily active wallets dropping below 5 million for the first time this year. User engagement plummeted by 10%, reaching just 4.8 million unique active wallets—the lowest level recorded in 2025.

DappRadar data reveals a shrinking footprint for web3 gaming within the decentralized app industry, now tied with decentralized finance at 21% market share each. Meanwhile, artificial intelligence projects surged ahead, capturing 16% of the sector.

Investment flows mirrored the decline. Blockchain gaming funding cratered nearly 70% month-over-month to $21 million in April, according to DappRadar analyst Sara Gherghelas. Despite the contraction, major ecosystem funds like Arbitrum Gaming remain active participants.