January 2025 began with a notable rise in blockchain gaming activity, reflecting a threefold increase in daily on-chain engagement compared to the same period in 2024. According to the latest DappRadar Games Report, powered by the Blockchain Game Alliance, the sector recorded 7.3 million daily Unique Active Wallets (UAW), representing a 386% year-over-year growth. While there was a slight decline of 10% from December 2024, this decrease is attributed to a natural cooldown following the peak gaming activity during the holiday season.

Overall, the decentralized application (dapp) industry remained highly active, with 26.7 million daily UAW across various sectors. Blockchain gaming continued to play a key role in this ecosystem, with DeFi maintaining a slight lead in user engagement. However, the gap between these two sectors has now narrowed to just 1%, reinforcing expectations that gaming could soon surpass DeFi as the dominant use case in blockchain technology.

Industry UAW

Key Developments

The growing integration of artificial intelligence into blockchain gaming was a significant trend in January. AI-powered features are being incorporated into several projects, enhancing gameplay mechanics and user experiences. Games such as Parallel Colony, Nifty Island, and Blocklords are implementing AI-driven non-player characters and automated gameplay elements. Meanwhile, other games, including ChronoForge and Sipher Odyssey, are also exploring AI-based features, signaling an industry-wide shift toward more interactive and adaptive gaming environments.

Industry Dominance (%) by UAW

Leading Blockchain Networks in Gaming

Among the top-performing gaming blockchains, opBNB maintained its leading position, driven by the ongoing success of games like World of Dypians and Seraph in the Darkness. Matchain secured the second spot, benefiting from the strong performance of LOL, a gamification platform. Aptos continued its upward trajectory, with gamified engagement platform KGeN playing a significant role in its adoption. Other notable projects on Aptos include STAN, a companion app for web3 content creators, and Slime Revolution, a social NFT game.

Polygon demonstrated a strong recovery in January, doubling its on-chain gaming activity, largely fueled by the growing popularity of QORPO WORLD and Planet IX. SEI, ImmutableX, and Nebula on SKALE maintained steady engagement, indicating a stable and healthy gaming ecosystem. Several emerging gaming networks gained traction during the month, highlighting the increasing demand for efficient and cost-effective blockchain gaming infrastructure.

TCG Verse on Oasys saw growth driven by the success of OasChoice, while ZetaChain experienced rising adoption with the introduction of Token Tails. Calypso on SKALE gained momentum through TomTalk, and Kroma continued expanding via KGen. Mantle Network also strengthened its gaming presence through Community Gaming. While these newer platforms may not yet meet traditional AAA gaming standards, they demonstrate innovation and technical advancements that are shaping the future of blockchain-based gaming.

Top Gaming Blockchains

Notable Gaming Performances in January

Several blockchain games made a significant impact in January by introducing new features, expansions, and player engagement initiatives. World of Dypians outlined its roadmap for 2025, introducing new quests, AI-driven gameplay improvements, and NFT character customization. The game plans to roll out major updates throughout the year, including multiplayer PvE and PvP modes, staking pools, and marketplace enhancements.

Age of Dino climbed the rankings with the introduction of a new reward system within the Xterio Ecosystem Points framework. The game, now available on Google Play, enables players to own and manage dinosaurs, engage in alliance warfare, and earn in-game rewards. SERAPH: In The Darkness marked a key milestone with its Token Generation Event (TGE) on January 6, launching the SERAPH token alongside Genesis Season 1. The season was followed by an exclusive NFT equipment staking event featuring a 2 million SERAPH prize pool.

Pixudi, a blockchain-based race board game on SKALE, gained attention with an upgrade to its backend API, setting the stage for enhanced board generation mechanics and upcoming testing phases. KGeN introduced Proof of Gamer (POG) NFTs, offering players unique AI-driven avatars, enhanced rewards, and non-transferable rewards tokens. Off The Grid continued to engage players with new esports collaborations and exclusive in-game items, while ERAGON launched its “Meme Land” feature, hosting a contest that rewarded participants with tokens and exclusive in-game assets.

Top Web3 Games

Investment Trends in Web3 Gaming

Investment in blockchain gaming saw a slower start in January, totaling $16 million, a significant drop from December’s $222 million. However, much of December’s funding came from Accolade Partners' investment fund, which was allocated for future gaming initiatives rather than direct project financing. Despite the lower funding total, several noteworthy investments were made, reflecting confidence in the long-term potential of blockchain gaming.

Pixion, a mobile-first web3 game developer, raised $4.9 million to further develop its isometric RPG and base-building game, Fableborne. BeraTone, a farming and life simulation game, secured $2 million in seed funding, with backing from Animoca Brands. ZKcandy, a layer-2 blockchain for gaming built on ZKsync, received $4 million in private funding. Meanwhile, Coliseum, a French esports platform, announced a $2 million investment fund aimed at supporting web3 gaming projects, addressing industry challenges such as funding gaps and audience acquisition.

Hyve Labs, a blockchain gaming infrastructure company, raised $2.75 million in pre-seed funding to develop a gaming rollup that integrates with popular social platforms like Telegram and Discord. While January’s total investment figures may appear modest, the focus has shifted toward foundational innovation rather than speculative funding. The emergence of gaming rollups, layer-2 solutions, and web3-native ecosystems is expected to drive the next wave of growth in blockchain gaming.

Investments in Web3 Gaming Projects

Outlook for 2025

January 2025 set the stage for an eventful year in blockchain gaming, with strong on-chain engagement, continued technological advancements, and evolving investment trends. While funding levels started on a conservative note, key investments in gaming infrastructure and development indicate sustained confidence in the sector’s future.

With 7.3 million daily Unique Active Wallets recorded in January, blockchain gaming remains a vital segment within the dapp industry, despite minor fluctuations in activity. New gaming ecosystems are emerging, AI-driven features are being integrated, and top-performing games are refining their mechanics and reward structures. As the industry progresses, the focus will increasingly shift toward player retention, scalability, and sustainable economic models.

The next few months could mark a pivotal moment for blockchain gaming as interoperability solutions, infrastructure improvements, and mainstream adoption initiatives take shape. With continued innovation and strategic development, the sector is well-positioned for further expansion throughout 2025.

Source: DappRadar