Web3 Gaming Lull Signals Market Maturation as Infrastructure Gains Traction
The blockchain gaming sector is undergoing a quiet transformation. Daily active wallets in Web3 games plunged to 4.8 million in April—a 2025 low—while investment cratered 69% monthly to $21 million. Gaming now shares equal footing with DeFi at 21% of decentralized app usage, ending its long dominance of the space.
This cooling period reflects a healthy market correction rather than collapse, according to DappRadar analyst Sara Gherghelas. The speculative frenzy around play-to-earn models is giving way to sustainable development. Infrastructure projects are quietly absorbing capital, with two-thirds of this year’s blockchain gaming investments flowing toward foundational technologies rather than flashy tokenomics.