MAY 2025 WEB3 GAMING REPORT

Have you ever wondered why Web3 gaming dominates headlines, even when the hype around crypto cools down? In May 2025, Web3 games still attracted nearly 4.9 million daily users, making them the most active category in the blockchain world. But here’s the twist: its market share dropped from 21% to 19.4%, as attention shifted toward sectors like AI and DeFi.

So, what’s going on behind the scenes?

Pull up a chair and let's dive in!

User Activity & Market Share Dynamics

Web3 gaming maintained its top spot in the dApp ecosystem in May 2025, attracting around 4.9 million daily unique active wallets (dUAW)—a slight increase from April. This rise signals steady engagement from the gaming community, showing that interest in blockchain-based games remains strong.

However, despite this growth, Web3 gaming’s overall market share plummeted from 21% to 19.4%. The reason? Emerging sectors like AI-driven applications and SocialFi platforms have begun capturing more user attention, pushing the total share of gaming down relative to the entire ecosystem.

But this isn’t a warning sign—it’s a shift. Gaming’s core audience is holding steady while the broader Web3 space diversifies. Rather than losing relevance, gaming is becoming one solid pillar among many. This stabilisation reflects a healthy, evolving space where Web3 users are spreading across multiple experiences while still valuing the interactive power of decentralised games.

Funding & Project Closures

In May, Web3 gaming experienced a sharp drop in funding, with just $9 million in funding—a steep decline from previous months. Among the few highlights were Oncade’s $4 million and Voya Games’ $5 million, both securing vital resources to continue their development journeys.

However, the month also witnessed some notable shutdowns. Titles like Nyan Heroes, Ember Sword, and Mystery Society closed their doors, underlining the fragility of some Web3 gaming ventures. These closures serve as a reminder that not every project can thrive in a challenging market.

This trend signals a broader need for Web3 game studios to build sustainable business models rather than relying solely on speculative hype. Strong fundamentals—like compelling gameplay, community engagement, and real-world utility—are becoming more critical than ever as the space matures.

Chain & Game Performance

In May 2025, we saw a noticeable shake-up across the Web3 gaming space, both in terms of blockchain activity and game popularity.

On the blockchain side, Sei led the charge with a 27% jump in user activity, thanks to exciting new games like Hot Spring and Archer Hunter. Aptos followed closely, rising by 22%, while Core posted a healthy 15% gain, fueled by increased developer interest and mobile-first gaming experiences.

But not all chains had a great month. opBNB slipped by 5%, and Ronin, once a major player in Web3 gaming, saw a sharp 25% decline. These drops hint at shifting user preferences and the growing demand for more versatile ecosystems.

In terms of games, newer ones like Pixudi, STAN, and Playzap are making waves. Their fun, fast-paced, and mobile-friendly experiences are drawing in players. Meanwhile, older games such as Alien Worlds and Axie Infinity are seeing their influence fade, with user numbers dropping steadily.

The big picture? Players are moving toward platforms and games that are quick, accessible, and built for today’s devices—especially smartphones. It’s a sign that agility and fresh ideas are now just as important as legacy status.

Top Performing Games of the Month

In May 2025, a few Web3 games stood out from the crowd. Here’s a look at the top performers and what made them click:

●      Pixudi – Rapid rise in daily users thanks to a new mini-game and social events. Its casual, competitive gameplay hit the sweet spot with mobile-friendly audiences.

●      STAN – Known for community-driven tournaments and regular in-game rewards, STAN’s active event calendar brought players back daily.

●      Playzap – A refresh with improved visuals and cross-chain asset support made Playzap shine, offering seamless gameplay across networks.

●      Hot Spring & Archer Hunter (on Sei) – These games led Sei’s surge (up 27%) with engaging content updates and referral campaigns that boosted both user growth and retention.

These games grabbed attention not just with flashy features but with consistent updates, player incentives, and easy-to-use design, perfect for Web3 newcomers.

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Emerging Competitors: AI & Social Dapps

Web3 gaming may still lead in activity, but it's no longer the only show in town. In May 2025, AI-powered dApps grew by an impressive 23%, attracting around 4.8 million daily wallets. Meanwhile, social dApps—platforms built around community and interaction—now make up about 17% of all Web3 activity.

What does this mean? Web3 is diversifying fast. While gaming still has the biggest slice of the pie, AI and social platforms are catching up quickly, offering new ways to engage users beyond just play-to-earn mechanics. The competition is real and healthy.

Looking Ahead: June & Future Catalysts

June could be a big month for Web3 gaming. Major releases like FIFA Rivals, The Bornless, Seraph Season 3, and a new Gods Unchained expansion are set to launch, possibly pulling more players back in.

But it’s not just about the hype—lasting engagement matters. Games need to be fun, not just profitable.

The good news? Big games like Sega, Ubisoft, and Sony (via Soneium) are entering the space. That’s a strong sign that Web3 gaming isn’t a passing trend—it’s building toward something much bigger.

Final words

Web3 gaming is still in the lead, but it’s facing more competition and tighter funding. While daily users remain steady, the industry is clearly shifting toward better games, smarter models, and long-term value.

With new titles launching and AI gaining traction, we might be seeing the start of a new chapter.

In this rebooting ecosystem, the next wave will be defined by games that endure—and communities that grow.