Web3 Gaming: Struggles, Setbacks, and a Promising Future in 2025
By Shikha Singh
In 2024, Web3 gaming showed both progress and setbacks. While some blockchain games like Axie Infinity and The Sandbox made strides in building user bases, the broader industry struggled to maintain momentum.
The Blockchain Gaming Alliance reports that Web3 gaming saw around 2.5 million daily active users in 2024, but bot-driven networks and resistance from traditional gamers, particularly in Western markets, still plagued the ecosystem. Despite this, Asian markets remained enthusiastic, with countries like South Korea and Japan leading the way.
ChainPlay reported that a staggering 93% of announced blockchain game projects have failed, with GameFi projects losing 95% of their value on average from their all-time highs. These projects typically last only four months, and 58% of VCs invested in GameFi have seen losses ranging from 2.5% to 99%. Despite 316 new projects launching annually, 262 disappear within a short period, illustrating the difficulty many projects face in sustaining themselves. Additionally, 88% of these projects have experienced a token price drop of over 90% from their ATH.
However, Yat Siu anticipates a significant shift in 2025. He predicts that Web3 gaming will see exponential growth, with an estimated 5-7 million daily active users by year-end, fueled by the convergence of Web2 and Web3 audiences.
The maturation of decentralized identities and reputation systems will encourage genuine engagement, pushing real players to the forefront and eliminating bot-driven ecosystems.
By 2026, Siu envisions Web3 game companies launching IPOs with a valuation surge of 30 to 40% as investor confidence grows.
He believes that on-chain activity will hit record highs, with Web3 gaming contributing to over 10% of total blockchain transactions.
Siu also predicts that decentralized finance (DeFi) will begin to outpace centralized exchanges in 2025, significantly boosting Web3 gaming’s infrastructure and adoption.
With upcoming projects like Mocaverse, Anichess, and continued investments in blockchain ecosystems like TON, he foresees hundreds of millions of new players joining Web3 games, propelling the industry forward.
There’s still hope for gaming. While challenges remain, the Web3 gaming space is on the cusp of a major breakthrough. The next evolution is already underway, and soon, players will be not just participants but true owners of the ecosystems they inhabit. The future appears promising and will soon fully unfold.
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