Blockchain Gaming dUAW Drops 10% in April, Industry Shifts to Infrastructure

In April, the blockchain gaming industry witnessed a significant decline in user activity, with daily Unique Active Wallets (dUAW) decreasing by 10% to reach 4.8 million, the lowest point of 2025 so far. This downturn was accompanied by a reduction in gaming's dominance within the decentralized app industry, which now stands at 21%, level with decentralized finance. Despite these challenges, analysts from DappRadar, a blockchain analytics platform, suggest that the overall ecosystem is maturing and becoming healthier.

According to DappRadar analyst Sara Gherghelas, the decline in user activity and funding does not signal the end of the blockchain gaming industry but rather a shift in its dynamics. She noted that while user attention is moving away from gaming, there is a concurrent development of new infrastructure, increased investment from major publishers, and the imminent launch of high-quality games. This evolution is characterized by a transition from speculative play-to-earn mechanics to a more genuine interest in gameplay, asset ownership, and community engagement.

Gherghelas highlighted that the drop in blockchain gaming investment activity, which fell by 69% from March to $21 million, is partly due to a shift in investor and user interest towards real-world assets and artificial intelligence. Additionally, the macroeconomic landscape, marked by ongoing market uncertainty, has made it more challenging for startups to secure capital. Gherghelas observed that weaker projects are being phased out, while funds are being redirected to projects that are laying the groundwork for the next generation of blockchain games. This shift indicates a market that is optimizing for sustainable models, player engagement, and actual retention, rather than being driven by token hype.

Gherghelas also pointed out that 66% of all blockchain game funding in 2025 has been allocated to infrastructure, signaling a more mature market. Mainstream gaming companies continue to experiment with blockchain-powered games, as evidenced by Ubisoft's partnership with Immutable and Sega's integration of non-fungible tokens and play-to-earn mechanics into its game, KAI: Battle of Three Kingdoms. Despite the challenges faced in April, the industry is recalibrating, with speculative hype cooling down but builders continuing to develop games, expand ecosystems, and mature infrastructure.