Web2.5 as the Next Growth Frontier in Gaming

The blockchain gaming sector is undergoing a profound transformation. After years of speculative hype and volatile token models, the industry is pivoting toward sustainable, gameplay-first approaches. This shift has given rise to Web2.5, a hybrid model where blockchain operates as backend infrastructure rather than a front-facing financial tool. Studios like Wemade, Fumb Games, and Mythical Games are leading this evolution, leveraging blockchain to enhance monetization, reduce friction, and improve user engagement-all while avoiding the pitfalls of token speculation.

The Decline of GameFi and the Rise of Web2.5

According to a report by Delphi Digital, funding for GameFi projects collapsed by over 55% in 2025, driven by failed token models, poor user retention, and unrealistic expectations. This collapse marked a turning point, forcing developers to rethink their strategies. Unlike traditional Web3 gaming, which centered on speculative incentives like NFTs and governance tokens, Web2.5 prioritizes seamless user experiences. Blockchain here functions as a tool for ownership, payment rails, and global reward systems-often invisible to the end user.

This transition is not a rejection of blockchain but a refinement of its role. Stablecoins, for instance, have emerged as a critical enabler, facilitating low-cost microtransactions and predictable payment systems that mitigate volatility. As Delphi Digital notes, the sector is now focused on "infrastructure-driven innovation" rather than speculative gains.

Wemade: Flexible Servers and Strategic Partnerships

Wemade, a pioneer in blockchain-enabled gaming, has adapted to this new paradigm by introducing flexible server models for its flagship title, Legend of Ymir. Players can now choose from Mini, Lite, and Origin servers, priced between $20,000 and $30,000, allowing for tailored engagement without compromising monetization. This approach caters to both casual and hardcore gamers, broadening the game's appeal.

The company has also expanded its reach through partnerships, such as a collaboration with Razer to promote Legend of Ymir according to industry reports. These strategic moves highlight Wemade's ability to integrate blockchain infrastructure while maintaining a familiar, Web2-like experience for users.

Fumb Games: Scaling User Acquisition and DAU Growth

Fumb Games has demonstrated the power of Web2.5 through its casual, Bitcoin-themed titles like Bitcoin Miner. In 2025, the company achieved a 116% increase in daily active users (DAU) by leveraging a custom user acquisition (UA) strategy with MAF's MyChips advertising platform. This growth was further supported by $12 million in UA funding from PvX Partners, enabling expansion into new markets like Japan, Australia, and Canada.

Fumb's success lies in its hybrid monetization model, combining in-app purchases and advertising. Data from 2025 shows that ad revenue in mobile gaming grew twice as fast as in-app purchases, with developers adopting flexible 50/50 to 80/20 ratios to optimize revenue. Fumb's ROAS (return on ad spend) exceeded 100%, proving the viability of blockchain-based UA in a non-speculative context.

Mythical Games: Diversifying Beyond Gaming

Mythical Games, another Web2.5 leader, reported $59.5 million in revenue in September 2025, reflecting its shift from pure play-to-earn models to diversified blockchain applications. The company has expanded into digital finance and AI, launching an ecosystem fund to support broader development. This diversification reduces reliance on gaming alone, creating new revenue streams through blockchain's backend capabilities.

Mythical's focus on ownership systems and global reward mechanisms aligns with Web2.5's core principles. By using blockchain to streamline monetization and reduce platform fees, the company has maintained a 250-person workforce while scaling its operations according to financial reports.

The Investment Case for Web2.5

The decline of GameFi has created a vacuum that Web2.5 is filling with sustainable, user-centric models. Key trends include:
- Hybrid monetization: Combining ads, subscriptions, and in-app purchases to maximize revenue according to market analysis.
- AI-driven personalization: Enhancing user retention through tailored experiences as reported by industry analysts.
- Stablecoin adoption: Enabling frictionless microtransactions and global payments according to monetization trends.

Investors should focus on companies that integrate blockchain as infrastructure rather than a speculative tool. Wemade, Fumb Games, and Mythical Games exemplify this approach, demonstrating that blockchain can drive real value without relying on token hype.

Conclusion

Web2.5 represents the next phase of blockchain gaming-a space where technology enhances, rather than distracts from, gameplay. As Delphi Digital highlights, the sector is resetting, prioritizing user experience and sustainable monetization. For investors, the opportunity lies in supporting studios that leverage blockchain's backend strengths while avoiding the pitfalls of speculation. The future of gaming is not in tokens but in infrastructure-and the winners will be those who build it.