The blockchain gaming sector reached 7.4 million daily Unique Active Wallets (dUAW) in 2024, marking 421% growth from a year ago, according to analytics platform DappRadar.
And DappRadar said gaming accounted for 26% to 29% of the blockchain industry’s activity, fluctuating throughout the year as decentralized finance (DeFi) gained momentum during the first quarter and the fourth quarter. It helps that Bitcoin has reached all-time highs of $103,847 (for a market valuation of $1.9 trillion).
DappRadar released its 2024 Blockchain Gaming Yearly Report, in collaboration with the Blockchain Gaming Alliance.
DappRadar said, “2024 was a transformative year for blockchain gaming, marking a shift toward mainstream adoption. The year saw remarkable user growth, the launch of ground breaking technologies, and significant strides in engaging non-Web3 users. Despite a challenging macroeconomic environment, the gaming sector remained resilient, showcasing its potential to redefine digital entertainment.”
The report said Immutable outperformed Ethereum with $330 million in non-fungible token (NFT) trading volume, underscoring its growing influence in blockchain gaming.
Meahwhile, blockchain gaming investments fell to $1.8 billion, representing a 38% decline compared to 2023, marking the lowest point since 2020. This mirrors the decline in VC investments in games that peaked in 2021 and then declined ever since. That has left a lot of companies that secured funding during the boom unable to get follow-on rounds for expansion.
The 7.4 million daily Unique Active Wallets (dUAW) represented a new record for Web3 players, with over 5.7 billion on-chain gaming transactions. The addition of more than 1,600 new games on DappRadar
2024 concluded on a high note for the blockchain gaming industry, marking another year of growth, innovation, and adaptation.
However, DappRadar said 2024 was not without its challenges. The sector witnessed both groundbreaking achievements and notable setbacks, all of which shaped its evolution and highlighted its resilience. The metaverse sector experienced a sharp 80% decline in trading volume compared to 2023, with sales counts dropping 71% over the same period.
Top-performing games of the year based on on-chain metrics included Pixels, which transitioned to the Ronin Network and launched Pixel Dungeon, and World of Dypians, which expanded its metaverse and introduced personalized user features.
Gaming NFT trading volumes were dominated by Guild of Guardians, which topped the charts in 2024 following its global launch in May.
The metaverse sector experienced a sharp 80% decline in trading volume compared to 2023, with sales counts dropping 71% over the same period.
Blockchain gaming investments dropped 38% year-over-year, reaching a total of $1.8 billion,marking the lowest point since 2020.
Yearly gaming leaders
By unique active wallets, here are the top 10 games that dominated the rankings.
Pixels retained its top position throughout the year. In 2024, the game transitioned from Polygon to the Ronin Network, significantly improving scalability.
Key milestones included the expansion of the Farm Land NFT collection, enabling players to customize and manage virtual plots. Additionally, December saw the launch of Pixel Dungeon, a collaborative effort with Crack and Stack, introducing fast-paced Web3 gameplay to its ecosystem.
Among new releases, Off The Grid had a big release. On October 8, Gunzilla Games launched Off The Grid in early access for PlayStation 5 and PC via the Epic Games Store. Influencers such as Ninja helped the game get attention out of the gate, but traffic fell after the influencers moved on to other games.
World of Dypians continued its rise, particularly following a major patch release on Epic Games in May. This update, developed in collaboration with Core DAO, Viction, and MultiversX, added new areas within the downtown section of its metaverse, enhancing exploration and gameplay. In December, the introduction of .wod domain names via SPACE ID Protocol allowed players to personalize their identities and foster community engagement.
Seraph: In The Darkness gained traction with its dedicated fanbase, concluding a third round of alpha testing in January. By December, the game’s official Steam page debuted, featuring detailed information, media assets, and wishlist functionality—cementing its reputation as a compelling Web3 title.
Despite the waning hype around move-to-earn mechanics, Sweat Economy remained robust. The platform introduced Magic Keys to bolster security within its Sweat Wallet app and launched multi-chain integration, starting with BNB Chain, for seamless cross-chain transactions.
StarryNift stood out with innovative features like the build-to-earn citizenship system and decentralized identity (DID) card protocol. Enhancements included customizable bot tools, third-party integrations, and AI-driven NPC interactions via an advanced SDK infrastructure, elevating user experiences within the virtual world.
Apeiron’s AGW Invitational Tournament in June attracted widespread attention, with top guilds competing in a double-elimination format. The game’s S3 release introduced revamped PvE dungeon modes, a mission system, and an immersive storyline, enriching its gameplay ecosystem.
Another new release was RavenQuest, a free-to-play fantasy MMORPG, honored as the “Best Adventure Game” at the 2024 GAM3 Awards. The game captivated over 1.7 million Twitch viewers during its early access phases and hosted a sold-out Phase 3 land sale in December.
Telegram-based gaming boom
Telegram emerged as a hotspot for casual blockchain games. Notably, Hamster Kombat, launched in March, amassed over 300 million players by mid-year. This game’s humorous Web3 elements encouraged viral sharing and user engagement.
The Open Network (TON), associated with Telegram, became a leading platform for on-chain gaming, averaging around 108,000 daily Unique Active Wallets (dUAW) throughout the year. Top gaming dapps on TON included Catizen and Lingo. Additionally, other networks, such as Mantle, explored integration with Telegram, expanding the ecosystem’s versatility.
Web2 gaming goes Web3
Web2 companies continued to move into the Web3 space, little by little.
Ubisoft: The French video game giant continued exploring blockchain with Captain Laserhawk: The G.A.M.E. This top-down multiplayer shooter introduced Web3 elements like NFTs, featuring characters such as Rayman. Players needed a Niji Warrior NFT to participate.
Champions Tactics: Grimoria Chronicles: Despite offering engaging strategy gameplay, the game’s reliance on NFTs, priced between $7 and $63,000, sparked community debates.
Sony and Soneium: Sony made strides in Web3 by launching its dedicated blockchain division, Soneium, emphasizing innovative gaming solutions in the decentralized space.
Sega’s move: Sega partnered with Line and introduced Kaia, signaling its entry into blockchain-powered experiences, merging classic franchises with decentralized technology.
CCP Games’ EVE Frontier: CCP Games expanded its EVE Online universe with EVE Frontier, integrating blockchain mechanics to enhance player-driven economies and interactions.
Square Enix’s expansions: Square Enix developed Symbiogenesis, a blockchain-based narrative adventure, and invested in Soccerverse and Hyperplay, cementing its role as a Web3 innovator.
NFTs in Gaming
DappRadar also revealed the top gaming NFT collections, evaluating them through trading volume and sales count metrics.
Leading the pack is Guild of Guardians, the most traded gaming NFT collection by volume in 2024. Officially launched globally on May 15, 2024, this title is available on iOS and Google Play, making it widely accessible. Players assemble teams of heroes, known as “Guardians,” to explore dungeons, battle enemies, and collect resources, blending immersive gameplay with NFT utility.
Gods Unchained maintains a strong presence on platforms like the Epic Games Store, its official website, and Google Play for Android users. This multi-platform availability ensures broad accessibility and enhances the user experience, solidifying its position as a key player in the NFT gaming market.
Despite years in the market, Axie Infinity continues to hold its community, maintaining high engagement and commercial viability for its in-game NFTs. The game’s resilience and adaptability underline its sustained popularity.
Pixelmon’s first-generation collection of 10,005 unique NFTs saw the highest volume increase in 2024. These NFTs offer exclusive perks such as token airdrops, enhanced in-game earnings, early access to alpha releases, and limited-edition items. In May 2024, Pixelmon introduced Warriors of Nova Thera, a dungeon crawler in closed testing.
With the second-highest increase in trading volume, Mavia Land represents the virtual plots within the Web3 multiplayer strategy game Heroes of Mavia by Skrice Studios. It launched the Heroes of Mavia mobile game on iOS and Android in January 2024.
When examining collections by sales count, the top titles mirror those ranked by trading volume, underscoring their widespread popularity and influence within the gaming NFT space.
The gaming NFT market continues to thrive, driven by innovation, accessibility, and the sustained popularity of key titles. These collections represent the heartbeat of the ecosystem, bridging gameplay and blockchain utility for millions of players worldwide.
In 2024, the metaverse saw a significant decline in both public interest and corporate investment.
Once envisioned as the future of digital interaction, the concept struggled to meet its ambitious promises. Trading volume and sales counts for metaverse NFT projects reached their lowest levels since 2020, marking an 80% decrease in volumes and a 71% drop in sales compared to the previous year. This downward trend reflects the challenges facing the sector, DappRadar said.
Sales counts have remained relatively steady, averaging around 23,000 per month. However, trading volumes were heavily impacted by token prices, particularly Ethereum’s fluctuations. The first quarter of 2024 performed better than later quarters, with a total trading volume of $60 million compared to only $21 million in Q4.
Despite the overall decline, two new projects made a strong impact: Mocaverse and Pixels, DappRadar said.
Launched by Animoca Brands, Mocaverse has emerged as a key player in the Web3 space. The project introduced the MOCA token and Moca ID, an on-chain decentralized identifier with over 1.79 million registrations and integration with 160+ Web3 applications.
Mocaverse secured $20 million in funding to expand its ecosystem and launched the Realm Network, promoting interoperability across gaming, music, and education to realize its vision of a decentralized cultural economy.
Originally launched in 2022, Pixels is a browser-based farming MMO that gained significant traction in 2024, surpassing a million daily active users. The project transitioned from Polygon to the Ronin Network, enhancing scalability and integrating its Farm Land NFTs into the Mavis Marketplace. With customizable plots and interactive gameplay, Pixels strengthened its Web3 ecosystem.
While the initial hype around Yuga Labs‘ Otherside has waned, the project introduced “Project Dragon,” a series of monthly action-packed events for NFT holders. In August, “Otherside Poker” provided a unique metaverse poker experience, complete with a charity-focused VIP table. Otherside also rolled out the “Yuga ID,” allowing users to unify their accounts and NFTs.
Despite turbulent times, The Sandbox announced plans for a mobile version to increase accessibility, collaborated with over 800 brands (a 10% year-on-year increase), and successfully closed Alpha Season 4, showcasing consistent user engagement and platform growth.
Decentraland introduced a new desktop client, delivering enhanced performance and more immersive experiences. Advanced AI capabilities were integrated, enriching user interactions. The platform’s creator-first economy remained a standout feature, with creators retaining 97.5% of their sales and earning 2.5% royalties on secondary sales—the highest revenue share in the industry.
The absence of a “killer app” capable of driving mass adoption led to reduced media attention and a pivot in focus among companies that had heavily invested in virtual worlds. Meta, for example, shifted its priorities from metaverse development to artificial intelligence (AI) technologies as the year progressed, DappRadar said.
Despite the setbacks, the integration of blockchain technology within metaverses continued to evolve. Platforms combining virtual worlds with blockchain aim to deliver on their initial promises, DappRadar said. One of the notable lack of mentions in the report was Infinite Reality, which raised $3 billion this year.
The Web3 gaming investment landscape
The investment landscape for blockchain gaming in 2024 reached its lowest point since 2020, reflecting a shift in priorities within the industry. By year-end, a total of $1.8 billion was invested in blockchain gaming and metaverse projects, representing a 38% decrease compared to 2023.
The year saw a strong performance in Q2, matching levels last seen in Q3 2022 and marking one of the best quarters since. However, activity slowed significantly in Q3 and Q4, contributing to the overall decline. That happened despite a big run upward in Bitcoin’s valuation.
In 2024, the majority of investments were directed toward investment firms, which accounted for 58% of the total. Infrastructure received 23.5%, Web3 gaming titles secured 14.8%, and metaverse projects claimed only 3.6% of the funding.
Top Investments of 2024
A number of high-profile Web3 gaming investments highlighted the year’s activity:
March 2024: Gunzilla Games raised $30 million for its upcoming cyberpunk-themed battle royale shooter, Off The Grid.
March 2024: Parallel Studios raised $35 million to expand the Parallel TCG universe and develop additional blockchain-based projects, including Colony and Wayfinder.
April 2024: Andreessen Horowitz (a16z) raised $7.2 billion for various venture strategies, including $600 million dedicated to gaming investments.
April 2024: Bitkraft Ventures closed its third fund at $275 million, focusing on seed and Series A investments in gaming studios, platforms, and technologies.
May 2024: Baby Shark Universe completed its seed round, achieving a $34 million valuation for its metaverse project on the Binance Smart Chain.
June 2024: The Sandbox raised $20 million through convertible promissory notes, focusing on advancing its decentralized virtual world and introducing a mobile version in 2025.
October 2024: Accolade Partners launched its third blockchain-focused fund, raising $202 million for investments in DeFi, gaming, stablecoins, and supporting infrastructure.
October 2024: Azra Games secured $42.7 million in Series A funding to develop “Project Legends,” a mobile RPG aimed at delivering console-quality experiences.
The blockchain gaming industry has matured significantly over the past few years, DappRadar said. With the hype around play-to-earn (P2E) subsiding, investors have increasingly backed games with sustainable tokenomics and player-centric ecosystems.
In 2022, the Web3 game industry attracted $7.6 billion in investments, much of which went toward play-to-earn models that have proven to be unsustainable. However, some of these investments have begun to bear fruit, as seen in the beta launches of games like Illuvium (announced in 2020), Shrapnel (in development since 2021), and Guild of Guardians (announced in 2020).
Economic conditions in 2024 also played a role in the reduced investment activity. For 2025, DappRadar hopes that improved economic stability and the release of high-quality triple-A blockchain games will drive renewed interest and adoption, setting the stage for a rebound in investments.
2025 could be a pivotal year for blockchain gaming, particularly if the industry can attract new users and deliver on the promise of immersive, triple-A-quality titles, DappRadar said. This next phase of growth will be crucial for solidifying blockchain gaming’s role in the broader gaming ecosystem.
Closing words
DappRadar said the blockchain gaming sector has demonstrated resilience and adaptability amid challenges and evolving trends. From groundbreaking technological advancements to shifts in user engagement and investment landscapes, the industry has continued to redefine itself, paving the way for a promising future.
The successes and lessons of 2024 underscore the importance of innovation, sustainability, and user-centric designs. With high-quality games on the horizon and growing infrastructure capabilities, the coming years hold immense potential for blockchain gaming to expand its influence and bridge the gap between Web3 and traditional gaming audiences, DappRadar said.
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2025-01-21 21:05:00
