State of Crypto Gaming in 2025

Crypto gaming has once again been declared "dead" by parts of the community, echoing similar sentiments from previous market downturns. In a recent detailed analysis of the space from GamingChronicles, several key developments were identified that explain why this perception has returned in 2025.

From funding challenges to underwhelming token performance and player engagement issues, the current state of crypto gaming reveals deep structural hurdles. Still, some signs point to a potential reset that could provide long-term benefits.

State of Crypto Gaming in 2025

Declining Sentiment and Funding Issues

One of the most visible indicators of the current downturn is the widespread negative sentiment across Crypto Twitter (CT). Public enthusiasm for crypto gaming projects has reached one of its lowest points in recent years.

This decline in sentiment is mirrored in the behavior of venture capital firms, where interest in funding web3 gaming initiatives has largely dried up compared to previous years. As investor appetite fades, many gaming studios have faced budget shortfalls, resulting in project cancellations and team reductions across the board. The relationship between players and the economic structures of crypto games is also under scrutiny.

Many projects continue to rely on utility tokens, which are often expected to align incentives between users, developers, and investors. However, these tokens frequently result in conflicting interests, particularly between retail players and venture capital backers. This misalignment has contributed to the erosion of trust and engagement in many play-to-earn ecosystems.

Uphill Battle of Launching a Gaming Token

State of Crypto Gaming in 2025

Ongoing Product and Audience Challenges

A central issue in the crypto gaming space lies in the gap between product quality and audience expectations. On one hand, the broader web3 gaming audience often consumes games for speculative purposes rather than gameplay itself. On the other, the games being built often fail to meet the standards expected by traditional gamers, lacking polish, depth, and replayability. This mismatch has contributed to low retention rates and skepticism from both crypto-native and mainstream gaming communities.

Additionally, the performance of new token generation events throughout 2025 has largely underwhelmed. Compared to other sectors within the Ethereum ecosystem, gaming-related assets have shown weaker returns and lower levels of sustained engagement. Ethereum remains a foundational layer for much of the crypto gaming activity, but the sector continues to lag behind others in terms of growth and user acquisition.

State of Crypto Gaming in 2025

Gaming NFTs and Mints

Recent data on gaming NFTs from June through early August provides a mixed picture. Over the past one and a half months, 87 gaming NFT mints have been tracked, up from 71 in the previous analysis. Of these, approximately 80 percent were paid mints, slightly down from 81 percent in June. Despite an uptick in the number of tracked projects, the majority of paid NFTs remain below their mint price, reflecting ongoing market pressure.

Ronin and Abstract remain the most active blockchains for minting gaming NFTs, though activity on both chains has recently slowed. A few projects have stood out in terms of performance. NFTs such as Sabong Saga Genesis, Gigaverse ROMs, and Breath of Estova Legacy Egg have shown notable increases in floor price compared to their mint prices. On the other hand, most free mints have failed to maintain value over time, with only Anichess Genesis showing sustained secondary market interest.

The overall sentiment for gaming NFTs has improved slightly since June, moving from slightly negative to neutral. Collections tied to ongoing product development, updates, or specific utility features tend to hold value better. In contrast, NFTs lacking an underlying product or clear use case continue to see diminished demand and price depreciation.

State of Crypto Gaming in 2025

What Needs to Change in Crypto Gaming

For web3 gaming to move forward, several structural changes are being considered within the community. Introducing tokens later in a game's lifecycle, rather than at launch, may help avoid speculative cycles that often undermine early product development. Some also advocate for the use of application-specific tokens or stablecoins to reduce volatility and improve user trust.

A broader vision for crypto gaming is also needed - one that resonates with a retail audience and extends beyond short-term financial incentives. Concepts such as digital asset ownership, player-driven economies, new game genres enabled by smart contracts, and efficient payment systems remain valid use cases. However, translating these into compelling, sustainable experiences will require both technical innovation and product design that focuses on gameplay first.

State of Crypto Gaming in 2025

A Year of Reset and Reassessment

The events of 2025 can be seen as a year of cleansing for the crypto gaming industry. Studios have shut down, token values have declined, and funding has become harder to secure. While these developments highlight the volatility of the space, they may also represent an important reset. The reduction in hype and the exit of less committed players and builders could open the door for a more grounded and thoughtful phase of development.

The fundamental use case for crypto in gaming remains. The challenge ahead lies in execution - building games that are enjoyable and sustainable, designing economic models that align interests effectively, and creating a vision for web3 gaming that appeals to a broader audience. As the market begins to recalibrate, the coming years may provide an opportunity for the sector to rebuild on more solid foundations. Here are all the games mentioned in the article: