Blockchain Gaming 2025: 7M Players, AI-Powered Games, and the Race to Overtake DeFi

The blockchain gaming sector is entering 2025 with a surge that few could have predicted just a year ago. According to a new DappRadar report, the industry now records over 7 million unique active wallets (UAW) daily, reflecting a staggering 386% increase from January 2024. As Web3 gaming continues its exponential growth, analysts are increasingly considering the possibility that it may soon overtake decentralized finance (DeFi) as the dominant use case in blockchain technology.

This shift is driven by several key factors, including advancements in Layer-2 scalability, strategic collaborations between traditional gaming giants and Web3 projects, and the development of sustainable token economies. While blockchain gaming has long been viewed as a speculative niche, the latest data suggests that the sector is maturing rapidly. Let’s explore the driving forces behind this transformation and assess whether blockchain gaming is on the brink of becoming the primary blockchain use case.

Main Industry Trends

For years, blockchain gaming was met with skepticism, often dismissed as a fleeting trend fueled by speculation rather than real player engagement. However, as 2025 begins, the landscape has changed significantly. The emergence of robust Layer-2 scaling solutions has addressed longstanding issues such as high transaction fees and slow processing times, making on-chain gaming more accessible and seamless.

According to DappRadar analyst Sara Gherghelas, blockchain gaming is experiencing a period of accelerated maturation due to three core developments:

1. Layer-2 Advancements – Innovations in Layer-2 scaling solutions, such as Polygon and ImmutableX, have significantly reduced costs and improved gameplay fluidity.
2. AAA Studio Collaborations – Established gaming studios are increasingly integrating blockchain elements into their games, with titles like Off The Grid by Gunzilla Games demonstrating the potential of Web3-powered gaming.
3. Sustainable Token Economies – Developers are shifting away from unsustainable play-to-earn models, opting for refined tokenomics that prioritize long-term in-game utility over speculative trading.

Although January 2025 saw a minor 10% dip in gaming activity compared to December 2024, analysts attribute this to seasonal fluctuations rather than a downturn. The broader trend remains overwhelmingly bullish, with on-chain gaming activity tripling year-over-year.

Changing Balance of Power with DeFi

Historically, DeFi has dominated blockchain adoption, serving as the primary driver of decentralized applications. However, as gaming wallets now account for nearly 29% of all blockchain activity—just 1% shy of DeFi’s share—the balance is shifting. Experts suggest that Web3 gaming could soon surpass DeFi as the leading blockchain sector.

Source: DappRadar

This shift is being fueled by AI-driven gaming innovations, which enhance gameplay with more intelligent NPCs, adaptive storytelling, and immersive experiences. Some of the top AI-integrated gaming projects leading the charge include:

• Parallel Colony – A strategy game utilizing AI-powered non-player characters to create dynamic interactions.
• Nifty Island – A user-generated content platform where AI agents assist players in designing in-game assets.
• Blocklords & ChronoForge – Web3 MMORPGs leveraging AI for enhanced realism and character development.

Top-Performing Gaming Blockchains in 2025

The rapid growth of blockchain gaming is not limited to a single network. Several Layer-1 and Layer-2 blockchains are emerging as dominant forces in Web3 gaming, each supporting a unique set of high-performing projects:

Read Also: Top 10 Play-to-Earn Tokens to Buy in Prep for 2025

1. opBNB

• World of Dypians – A metaverse RPG integrating DeFi staking mechanics.
• Seraph in the Darkness – A fantasy RPG gaining momentum.

2. Matchain

• LOL Gamification Platform – Driving engagement through innovative reward structures.

3. Aptos

• KGeN – A gamified engagement ecosystem.
• Slime Revolution – A social NFT-based play-to-earn game.

4. Polygon

• QORPO WORLD – A metaverse project fueling the network’s gaming resurgence.
• Planet IX – A strategic land-based NFT game.

5. SEI, ImmutableX, and Nebula (on SKALE)

These networks continue to sustain high engagement levels, demonstrating their stability in the Web3 gaming ecosystem. Meanwhile, newer networks like ZetaChain, Oasys, Kroma, and Mantle Network are rapidly gaining traction.

The Biggest Web3 Games in 2025

Several blockchain games are capturing significant user engagement and investment, helping drive the sector’s momentum. Here are some of the top-performing titles:

• World of Dypians – Introducing AI-powered gameplay and new NFT integrations.
• Age of Dino – Part of the Xterio ecosystem, now expanding through Google Play.
• SERAPH: In The Darkness – Recently held a successful Token Generation Event (TGE) and launched NFT staking incentives.
• Pixudi – A blockchain board game blending NFT ownership with competitive mechanics.
• Off The Grid – Implementing a battle pass system and a Discord-based quest feature.
• KGeN – Launching Proof of Gamer (POG) NFTs, allowing players to monetize their in-game achievements.

Investment Trends in Blockchain Gaming 2025

Despite record-breaking user growth, investment in Web3 gaming saw a slow start to 2025, with only $16 million raised in January, down from $222 million in December 2024. However, analysts suggest this is not indicative of a decline in confidence but rather a strategic deployment of capital into previously funded projects.

Read Also: Top Mobile NFT Games in 2025

Notable recent investments include:

• Pixion – Securing $4.9 million for its mobile-first RPG Fableborne.
• BeraTone – Raising $2 million for its farming and life simulation game.
• ZKcandy – A ZKsync-based Layer-2 project raising $4 million for blockchain gaming support.
• Hyve Labs – Raising $2.75 million to integrate gaming rollups with Telegram and Discord.

Will Blockchain Gaming Go Mainstream?

With 7 million daily active wallets, blockchain gaming is no longer a niche experiment—it has become a fundamental pillar of the blockchain ecosystem. The recent surge in Bitcoin’s price to an all-time high of $103,847 has further fueled liquidity inflows into Web3 gaming, attracting new players and investors alike.

According to DappRadar’s 2024 Gaming Report, key industry trends include:

• Web3 gaming reaching 7.4 million daily active wallets in 2024—a 421% year-over-year increase.
• ImmutableX surpassing Ethereum in NFT trading volume, recording $330 million in transactions.
• Over 1,600 new blockchain games launching in 2024, indicating sustained innovation.

With AAA partnerships, AI integration, and the widespread adoption of Layer-2 networks, 2025 could mark the definitive moment when blockchain gaming overtakes DeFi, solidifying itself as the dominant force in Web3. The question is no longer whether blockchain gaming will go mainstream, it’s how soon it will happen.