In April, the development of blockchain games was a mixed bag. User activity declined, funding slowed down, and market attention shifted towards AI and real-world assets. However, beneath the surface, real progress is being made: new infrastructure is going live, major publishers are increasing their investments, and high-quality games are nearing release.

This report will explore the current trends shaping the development of blockchain games, the quiet achievements, the shifting narratives, and what all of this means for the future.

Key Points:

• User activity declined by 10% in April, with the number of daily unique active wallets (dUAW) dropping to 4.8 million, the lowest point so far in 2025.

• The dominance of games in the dapp industry has also decreased, now on par with DeFi at 21%, while AI is on the rise with a 16% market share.

• Key games still hold significant dominance at the blockchain level: Pixudi occupies 99% of Calypso, Off The Grid holds 100% of GUNZ, and World of Dypians accounts for 76% of Nebula.

• Despite the unfavorable market environment, the blockchain gaming sector still raised $21 million, a 69% drop from March.

• Arbitrum Gaming Ventures allocated its first $10 million from its $200 million fund to support projects such as Wildcard, XAI, and Proof of Play.

1. Overview

It can be said with certainty that blockchain gaming will continue to evolve. It remains one of the most promising areas for bringing Web3 into the mainstream. However, it is clear that user attention is shifting away from games towards real-world assets and AI-driven projects.

Data confirms this. In April, the number of daily active unique wallets (dUAW) in blockchain games dropped to 4.8 million, a 10% decline from the previous month. The dominance of games in the dapp industry is also slipping. Although it used to be the leading category, DeFi regained focus due to the memecoin wave. Now, AI is rapidly catching up, capturing a 16% share, while games and DeFi each hold 21%.

Despite the unfavorable market environment, development has not slowed down. Teams are still building, and funds continue to flow into this area. The sector is becoming less reliant on speculative "play-to-earn" mechanisms and more driven by users interested in gameplay, asset ownership, and community.

Familiar names dominate the top game chain list, with opBNB once again at the top. To dig deeper, the activity of game dapps on each chain was analyzed, and some patterns emerged.

World of Dypians accounts for 52% of activity on opBNB and a staggering 76% on Nebula (SKALE).

On Ronin, although Axie Infinity is the top-ranked game, its activity share is only 33%, indicating that Ronin is actively moving away from its identity as the "Axie Chain."

Off The Grid holds 100% of the activity on its custom GUNZ testnet, and similarly, Age of Dino occupies 100% on Xterio.

These figures reveal a deeper issue: some chains are clearly built around flagship games, while others like Ronin are evolving into ecosystems for multiple games. As competition intensifies, it will be interesting to see which chains successfully develop into broader, comprehensive gaming hubs and which remain limited to a single IP.

2. April's Leading Games

Every month, attention is given to the top ten games ranked by activity, and April was no different, with some of the most active projects continuing to make progress.

Off The Grid — GUNZ Mainnet Now Live

Off The Grid (OTG), a cyberpunk-style battle royale game by Gunzilla Games, made significant strides in April. Around April 17, the team activated its custom GUNZ blockchain on Avalanche and launched the mainnet nodes, building the core infrastructure for the game's economy.

OTG is still in the early testing phase, but the launch of its mainnet indicates that a full release is drawing closer. Notably, this is the first Web3 game playable on PS5 and Xbox One Series. Gunzilla's ecosystem model includes node rewards and profit buybacks through the GUN token, and speculation is growing about a potential full release in the coming months.

Axie Infinity — Seasons Continue

In April, Axie Infinity attracted players through multiple competitions on the Ronin network:

• Axie Classic Season 9 (running until the end of May) — with a total prize pool of 35,000 AXS

• Origins Season 13 preliminaries began on April 22

• The playoffs for Season 12 have also concluded

Sky Mavis is shifting resources towards the upcoming massively multiplayer online role-playing game (MMORPG) Atia's Legacy. As part of this transition, the experimental hub "Project T" has been closed. Interest in this Axie MMORPG seems high, with 2.5 million pre-registrations by mid-March.

Seraph — Season 3 Officially Launched

The dark fantasy action role-playing game Seraph kicked off its third season on April 27, bringing new dungeons, equipment, and a free season pass. This update also introduced:

• Stall licenses (player-operated shops)

• An on-chain asset profit system, converting in-game achievements into token rewards

The focus remains on a sustainable play-to-earn mechanism, rewarding players for their effort and time, not just token trading.

Comprehensive Game Updates

Star Atlas launched two new PvP modes:

• Gunfight — a deathmatch mode with killable, upgradable weapons

• Zone Control — a team-based map control gameplay

The Sandbox continued the features of Alpha Season 5, introducing new UGC games (such as SABOTAJ) and branded experiences like "Jurassic World." This season will run until May 12, offering a $1 million prize pool, including SAND, NFT, and LAND rewards.

Cambria postponed the launch of its second season, The Paymasters, originally scheduled for April 7. This RuneScape-inspired MMORPG runs on Blast and Ronin, with a "risk-reward" model requiring players to stake assets for high-return dungeon challenges. Developers promised to notify 24 hours before the new season begins.

Gods Unchained announced a significant backend migration: from Immutable X to zkEVM, supporting smart contracts and achieving broader interoperability. The token bridge is expected to open by the end of May, with players automatically migrating.

3. Ecosystem Development and Partnerships

April witnessed a series of developments and partnerships in the ecosystem, reflecting that Web3 gaming has entered a more mature stage. From major publishers testing new models to the opening of chain infrastructure, the field continues to evolve strategically.

Traditional Publishers in Web3

Mainstream gaming companies are still experimenting with blockchain technology — with some achieving greater success.

Sega officially launched KAI: Battle of Three Kingdoms, integrating NFTs and a "play-to-earn" mechanism into a well-known IP.

Meanwhile, Square Enix announced that due to poor performance (NFT trading volume of only about 125 ETH, with a floor price nearing zero in April), it will close the Symbiogenesis project in July 2025.

Square Enix will remain in the Web3 space, but this outcome shows that simply transplanting NFTs into games is not enough. Sega's collaboration-driven strategy contrasts sharply with Square Enix's solo approach, highlighting a key lesson: native Web3 experiences are crucial.

In April, Ubisoft announced a partnership with Immutable. The two will jointly launch a collectible card game, Might & Magic franchise, bringing the Might and Magic series into the blockchain realm. The game is scheduled to go live by the end of this year.

Netmarble x Immutable

Netmarble, through its Web3 division Marblex, made a significant ecosystem announcement. The South Korean giant plans to launch seven blockchain games on the Immutable platform in 2025, including Tokyo Beast, which combines esports with NFT mechanisms.

Immutable's zkEVM will support these games, and both parties seem confident that this collaboration will bring blockchain gaming to a broader audience. Marblex also introduced a new mascot, "Goby," and the slogan "Fun First," signaling its deeper entry into Web3.

Ronin Opens to Third-Party Developers

Ronin, once the standalone chain for Axie Infinity, has officially opened to third-party developers. April saw fruitful results:

• Avarik Saga, initially on Arbitrum, expanded to Ronin to benefit from lower fees and a game-focused ecosystem

• Realms of Alurya left the Treasure ecosystem and migrated to Ronin

• Community Gaming launched a prediction market dapp (FORKAST) on Ronin

With more games joining, Ronin is transforming from an Axie-only chain to a broader ecosystem. However, this also brought some trouble, as the developers of Ragnarok: Monster World moved their game to another chain, allegedly in breach of contract.

Arbitrum and Custom Chains

Through its Orbit program, Arbitrum is enabling custom game subnets. One example that gained attention in April is Studio Chain — built in collaboration with Karrat and the Arbitrum Foundation.

The flagship game on this chain is My Pet Hooligan, a battle royale game with over $78 million in in-game asset trading volume. Currently, the game is fully migrating its token (KARRAT) and gameplay to Studio Chain. This signals a broader trend: developers are turning to application-specific chains to customize game performance and in-game economies.

4. Investment Declines by 69%, but "Smart" Capital Flows into Infrastructure

Investment activity in the blockchain gaming and metaverse sectors almost came to a standstill in April, but there are still some cautiously optimistic reasons. The total funding raised this month was only $21 million, a 69% drop from March. The macroeconomic situation is also unfavorable, with ongoing uncertainty affecting investor sentiment.

However, despite the lower overall figures, previously announced ecosystem funds have begun to bear fruit. The most prominent is Arbitrum's $200 million ARB gaming fund, which has been officially renamed Arbitrum Gaming Ventures. After completing backend work in April, it announced its first investments in early May.

The first $10 million allocation went to five projects:

• Wildcard: A Web2 card game from Steam that has now turned to Arbitrum

• Proof of Play: Blockchain services provided by the developers of Pirate Nation

• XAI Network: One of the leading game Layer-3 chains built on Arbitrum

• Hyve Labs: A multi-platform game publishing platform

• T-Rex: A game application chain

Arbitrum did not invest in entirely new independent teams but bet on established studios and experienced founders to ensure the growth of the ecosystem.

It is worth noting that, so far, 66% of all funding in 2025 has gone into infrastructure construction. This shows that with traditional gaming companies continuing to enter and significant investments in the ecosystem, confidence in Web3 gaming is not weakening but becoming more mature.

Investors are now focusing more on sustainable models, player engagement, and actual retention rates, rather than just token speculation. This indicates that the market is clearly in reset mode. Funding is harder to come by, but this is not necessarily a bad thing. Some weaker projects are being weeded out, and funds are flowing towards developers who are laying the groundwork for the next generation of blockchain games.

5. Outlook for May

May will see major updates, alpha test releases, and content updates that could shake up the Web3 gaming space.

MapleStory N

Nexon's MapleStory N officially launched on May 15, built on Avalanche's "Henesys" subnet. This blockchain game from a well-known traditional IP has shown strong early data:

• 1 million registered wallets during the test period

• Over 31.5 million transactions processed

Treeverse

The reward events for Season 1 of Treeverse are ongoing, featuring daily quests, leaderboards, and in-game/NFT rewards.

Gigaverse

Gigaverse has introduced two features aimed at improving player retention and growth:

Illuvium

In May, Illuvium: Zero may officially launch. The ILV token has shown strong performance, and the team is pushing hard for the official release, with more news likely to be announced soon.

6. Conclusion

April was not a record-breaking month for blockchain gaming, but that's okay; the industry is realigning. The speculative fever is cooling down, but developers haven't stopped their tracks. Games keep coming out. Ecosystems keep expanding, and infrastructure is maturing.

The decline in user activity (a 10% drop in dUAW) and lower investment amounts (only $21 million raised) reflect the market's current risk preferences. But at the same time, we've witnessed the first deployment of Arbitrum's $200 million fund, new studios joining Immutable, and Ronin opening up to external developers. This is not explosive growth but foundational work.

Major publishers are still emerging, but the real progress is being made by those who partner with Web3-native teams. Moreover, there is a clear shift in priorities from unsustainable token models to gameplay, interoperability, and actual user retention.