Article reprinted from: Felix
Author: Dappradar
Compiled by: Felix, PANews (This article has been edited)
In April, the development of blockchain games showed mixed results. User activity declined, funding slowed, and market attention shifted toward AI and real-world assets. However, beneath the surface, real progress is happening: new infrastructure is coming online, major publishers are increasing investments, and high-quality games are also nearing release.
This report will explore the current trends shaping the development of blockchain gaming, the quietly achieved results, the evolving narratives, and what all this means for the future.
Key Points:
In April, user activity declined by 10%, with the daily unique active wallets (dUAW) dropping to 4.8 million, the lowest point of 2025 so far.
The dominance of games in the dapp industry has also declined, currently at parity with DeFi at 21%, while AI is on the rise, now holding a market share of 16%.
Key games still hold a high level of dominance at the blockchain layer: Pixudi occupies 99% of Calypso, Off The Grid accounts for 100% on GUNZ, and World of Dypians holds 76% on Nebula.
Despite a poor market environment, the blockchain gaming sector still raised $21 million, down 69% from March.
Arbitrum Gaming Ventures allocated the first $10 million from its $200 million fund to support projects like Wildcard, XAI, and Proof of Play.
1. Overview
It is safe to say that blockchain gaming will continue to develop. It remains one of the most promising areas for bringing Web3 into the mainstream. However, it is clear that user attention is shifting from games to real-world assets and AI-driven projects.
Data also confirms this. In April, the number of daily active unique wallets (dUAW) in blockchain games was 4.8 million, down 10% from the previous month. The dominance of games in the dapp industry is also declining. While it was once the leading category, DeFi has regained focus due to the memecoin craze. Today, AI is rapidly catching up, commanding 16% of the market, while games and DeFi each hold 21%.
But development has not slowed; the team is still building, and funds continue to flow into this area. It is no longer as reliant on speculative 'play-to-earn' mechanisms, but is more driven by users interested in gameplay, asset ownership, and community.
Familiar names dominate the top gaming chain rankings, with opBNB once again at the top. To delve deeper, the activity of game-type DApps on each chain was analyzed, revealing some patterns.
(World of Dypians) holds 52% of activity on opBNB and as high as 76% on Nebula (SKALE).
On Ronin, although (Axie Infinity) is the top-ranking game, its activity accounts for only 33%, indicating that Ronin is actively shedding its identity as the 'Axie Chain'.
(Off The Grid) holds 100% of activity on its dedicated GUNZ testnet, similarly, (Age of Dino) also holds 100% of activity on Xterio.
These data reveal a deeper issue: some chains are clearly built around flagship games, while chains like Ronin are evolving into ecosystems for multiple games. As competition intensifies, it is worth noting which chains can successfully develop into broader integrated gaming hubs, and which chains remain limited to a single IP.
2. April Game Leaders
Each month focuses on the top ten games ranked by activity, and April's situation was not surprising, with only some of the most active projects continuing to make progress.
(Off the Grid) - GUNZ mainnet is now live
(Off the Grid) (OTG) is a cyberpunk-style battle royale game launched by Gunzilla Games that made significant progress in April. Around April 17, the team activated its custom GUNZ blockchain on Avalanche and launched the mainnet nodes, building the core infrastructure for the in-game economy.
OTG is still in early testing, but its mainnet launch indicates that a full release is getting closer. Notably, this is the first Web3 game playable on PS5 and Xbox One Series. Gunzilla's ecosystem model includes node rewards and revenue buybacks through the GUN token, with increasing speculation about its full release in the coming months.
(Axie Infinity) - Season ongoing
(Axie Infinity) attracted player participation in April through multiple competitions on the Ronin network:
(Axie Classic) Season Nine (running until the end of May) - Total prize pool of 35,000 AXS
(Origins) Season Thirteen preliminaries began on April 22
The playoffs for Season Twelve have also concluded
Sky Mavis is shifting resources to the upcoming MMORPG (Atia's Legacy). As part of this transition, the experimental center 'Project T' has been closed. Players seem very interested in this Axie MMO game, with pre-registration users reaching 2.5 million by mid-March.
(Seraph) - Third season officially launched
The dark fantasy action RPG (Seraph) launched its third season on April 27, bringing new dungeons, gear, and a free season pass. This update also introduces:
Booth licenses (player-operated shops)
On-chain asset yield system that converts in-game achievements into token rewards
The focus remains on sustainable P2E mechanisms that reward players for their efforts and time, rather than just token trading
Comprehensive game updates
(Star Atlas) has launched two new PvP modes:
Shooting Game - A deathmatch mode with killable and upgradeable weapons
Territory Control - Team-based map control gameplay
The Sandbox continues the features of Alpha Season Five, launching new UGC games (like SABOTAJ) and brand experiences like 'Jurassic World'. This season will continue until May 12, offering a prize pool of $1 million, including SAND, NFT, and LAND rewards.
Cambria has postponed the launch of the second season (The Paymasters), originally scheduled for April 7. This MMORPG inspired by (RuneScape) runs on Blast and Ronin, and its 'risk-reward' model requires players to stake assets for high-reward dungeon challenges. The developers have promised to notify 24 hours before the new season starts.
(Gods Unchained) announced a major backend migration: moving from Immutable X to zkEVM to support smart contracts and achieve broader interoperability. The token bridge is expected to open at the end of May, at which point players will automatically complete the migration.
3. Ecosystem Development and Collaboration
April witnessed a series of developments and collaborations in the ecosystem, reflecting that Web3 gaming has entered a more mature phase. From large publishers testing new models to the opening of chain infrastructure, the field continues to evolve strategically.
Traditional Publishers in Web3
Mainstream gaming companies are still experimenting with blockchain technology - some of these companies have achieved greater success.
Sega officially launched (KAI: Battle of Three Kingdoms), incorporating NFTs and a 'play-to-earn' mechanism into well-known IPs.
Meanwhile, Square Enix announced that it will close the Symbiogenesis project in July 2025 due to poor performance (NFT trading volume was only about 125 ETH, and the floor price was nearly zero in April).
Square Enix will remain in the Web3 space, but this outcome suggests that merely transplanting NFTs into games is not enough. Sega's collaboration-driven strategy stands in stark contrast to Square Enix's solitary approach, highlighting a key lesson: native Web3 experiences are essential.
In April of this year, Ubisoft announced a partnership with Immutable. The two will jointly launch a trading card game (Might & Magic franchise) that brings the (Might and Magic) series into the blockchain space. The game is planned for release by the end of this year.
Netmarble x Immutable
Netmarble announced a major ecosystem announcement through its Web3 division Marblex. The South Korean giant plans to launch seven blockchain games on the Immutable platform in 2025, including a game that integrates esports and NFT mechanics (Tokyo Beast).
Immutable's zkEVM will support these games, and both parties seem confident that this collaboration can bring blockchain gaming to a wider audience. Marblex has also replaced its mascot with 'Goby' and the slogan 'Fun First', marking its deeper foray into Web3.
Ronin opened up to third-party developers
Ronin was once the single-player game chain for Axie Infinity, but it has now officially opened up to third-party developers. April brought fruitful results:
Initially on Arbitrum, Avarik Saga has expanded to Ronin to benefit from lower fees and a game-prioritized ecosystem
Realms of Alurya abandoned the Treasure ecosystem, migrating to Ronin
Community Gaming launched the prediction market dapp (FORKAST) on Ronin
As more games join, Ronin is transforming from an Axie-only chain into a broader ecosystem. However, this has also caused some troubles, as the developers of (Ragnarok: Monster World) have moved their game to another chain and are suspected of defaulting.
Arbitrum with dedicated chains
Through its Orbit program, Arbitrum is enabling custom gaming subnets. One example that gained attention in April is Studio Chain - constructed in collaboration with Karrat and the Arbitrum Foundation.
The flagship project of the chain is (My Pet Hooligan), a battle royale game with in-game asset trading volume exceeding $78 million. Currently, the game is migrating its token (KARRAT) and gameplay fully to Studio Chain. This indicates a broader trend: developers are turning to dedicated chains to customize game performance and in-game economy.
4. Investment declined by 69%, but 'smart' capital is flowing into infrastructure
Investment activity in blockchain games and the metaverse was almost stagnant in April, but there are still some reasons for cautious optimism. The total amount of funds raised this month was only $21 million, down 69% from March. The macroeconomic environment is also unfavorable, with ongoing uncertainty affecting investor sentiment.
However, despite the overall lower numbers, previously announced ecosystem funds have begun to yield results. The most prominent of these is Arbitrum's $200 million ARB gaming fund, which has officially been renamed Arbitrum Gaming Ventures. After completing backend work in April, the first investments were announced in early May.
The initial $10 million in funding was allocated to five projects:
Wildcard: A Web2 card game from Steam that has now transitioned to Arbitrum;
Proof of Play: Blockchain services provided by the developers of Pirate Nation;
XAI Network: One of the leading gaming Layer-3 chains built on Arbitrum;
Hyve Labs: A multi-platform game distribution platform;
T-Rex: Game application chain;
Arbitrum is not investing in entirely new independent teams but is betting on mature studios and experienced founders to ensure the growth of the ecosystem.
Notably, as of now, 66% of all funds for 2025 have been allocated to infrastructure development. This indicates that with the continued entry of traditional gaming companies and significant investments in the ecosystem, confidence in the long-term prospects of Web3 games has not diminished; rather, it has matured further.
Investors are now paying more attention to sustainable models, player engagement, and actual retention rates, rather than just token speculation. This indicates that the market is clearly in a reset mode. Funding is harder to come by, but this may not be a bad thing. Some weaker projects are being eliminated, and funds are flowing towards developers laying the groundwork for the next generation of blockchain games.
5. May Outlook
May will bring major updates, the release of the Alpha test version, and content updates, all of which could shake the Web3 gaming space.
(MapleStory N)
Nexon's (MapleStory N) officially launched on May 15, built on Avalanche's 'Henesys' subnet. This is a blockchain game from a well-known traditional IP, with strong early data performance:
The number of registered wallets during the testing phase reached 1 million
Over 31.5 million transactions have been processed
(Treeverse)
(Treeverse) Season 1 rewards are underway, including daily tasks and leaderboards, as well as in-game/NFT rewards.
(Gigaverse)
(Gigaverse) has launched two features aimed at enhancing player retention and growth:
(Illuvium)
In May, Illuvium: Zero may officially launch. The ILV token is performing strongly, and the team is fully pushing for the official release, with more news expected soon.
6. Summary
April was not a record-breaking month for blockchain gaming, but that’s okay; the industry is readjusting. The speculative frenzy is cooling, but developers have not stopped their progress. Games continue to launch. The ecosystem is expanding, and the infrastructure is becoming increasingly mature.
The decline in user activity (dUAW down 10%) and lower investment amounts (only $21 million raised) reflects the current risk appetite of the market. However, it has also witnessed the first deployments of the $200 million Arbitrum fund, new studios joining Immutable, and Ronin opening up to external developers. This is not explosive growth, but foundational work.
Large publishers are still emerging, but real progress is being made by those publishers collaborating with Web3 native teams. Additionally, there has been a clear shift in priorities, moving from unsustainable token models to gameplay, interoperability, and actual user retention.
Related Reading: Ten Web3 Games to Watch in May
