The gaming sector has often been regarded as the pinnacle of Web3, a space that is continuously evolving.
As the ecosystem matures and competition ramps up, even gaming’s long-standing reign is showing signs of strain. May 2025 has emerged as a pivotal month for blockchain gaming, shedding light on sustained engagement, fresh challenges, and the deterioration of several once-promising projects.
While gaming remains the frontrunner among decentralized applications, it does so by a narrow margin. The data reflects both resilience and vulnerability, creating a backdrop for an unpredictable summer ahead.
Gaming Remains on Top, But with Shrinking Margins
In May, Web3 gaming recorded 4.9 million daily unique active wallets—a slight increase from April. However, this doesn’t imply a growing dominance within the Web3 ecosystem. In fact, gaming’s declining market share—19.4% compared to 21% in April—suggests that its top position may be more fragile than it appears.
According to our May data, user numbers for DeFi, AI, and other emerging applications are nearly on par with gaming. Social applications captured 17.1% of total user share, and NFTs garnered 15.5%, both showing considerable growth. Interestingly, users seem increasingly interested in the interactivity offered by these new app categories, even more than when they first emerged.
Despite having the largest user base, gaming is witnessing a decline in user engagement. This increasingly competitive landscape indicates that other forms of digital entertainment are innovating and attracting users more effectively. For gaming to maintain its lead, it must adopt successful onboarding strategies similar to those seen in other entertainment sectors.
Shifting Chains: opBNB in the Lead but Facing Competition
opBNB continued its dominance as the leading gaming chain in May, although other chains are gaining momentum. Aptos experienced a substantial 22% growth, edging closer to opBNB. Notably, Sei saw an impressive 27% increase, fueled by robust activity across various gaming applications.
Core not only survived but also made its mark, entering the top 10 chains for gaming with a 15% growth—the only chain in the top 10 to achieve such an increase during this period. This underscores the dynamic and competitive nature of the sector.
Developers and players are eager to explore faster, cheaper, and more scalable ecosystems, leading to new venues, diverse interactions, and a broader adoption of crypto-native behaviors. For instance, metaverse racetracks and soccer fields are now being developed.
World of Dypians emerged as the leading Web3 game in May, attracting 3.83 million daily users. On Sei, both Hotspring and Archer Hunter showed significant growth, indicating a budding gaming community on that chain. Meanwhile, PlayZap Games continued its upward trajectory, solidifying its position among the mid-tier fast-growing titles.
With user experience and gaming-specific performance in focus, gaming-centric chains could prevent any single blockchain from maintaining dominance for too long. The upcoming months, particularly July and August, could see volatility driven partly by Bitcoin and Ethereum price movements, as well as the success or failure of major game launches on rival chains.
Challenges Faced by Web3 Gaming Projects
Despite lofty user numbers and enthusiasm, Web3 gaming is struggling to establish genuine sustainability. High-profile projects with substantial funding and hype are starting to falter, revealing the challenges of creating lasting engagement in this space.
Notable titles such as Nyan Heroes, Ember Sword, and The Mystery Society have either shut down or become inactive, showcasing the difficulty of not only developing but also maintaining economically viable and trusted games within their communities.
Yet, there’s still hope. June is packed with high-stakes gaming events that could potentially reignite momentum. The SERAPH Season 3 arrives with a $5 million prize pool, expected to draw competitive gamers and spectators alike. Additionally, card battler fans might find renewed interest as Gods Unchained releases its new expansion pack. And Tokyo Beast promises an exciting $1 million championship that should enhance visibility and entertainment.
Future Outlook: Can Gaming Retain Its Leading Position?
As demonstrated by the May data, Web3 gaming remains a vibrant sector. However, it faces significant pressures, including internal challenges that threaten the stability of its major projects. There’s also the looming possibility that leading Web3 gaming projects may not endure much longer in the space, with other sectors—such as social media, DeFi, and AI applications—eagerly vying for the same territory currently held by gaming.
As we move into June, the gaming realm is set to witness an unprecedented surge of activity around key industry events like the Game Developers Conference and the Electronic Entertainment Expo (E3). These occasions not only promise excitement but will also test the gaming industry’s ability to engage users, adapt its business models, and move away from outdated big tech infrastructure. The outcome of these efforts will determine whether the gaming sector retains its crown or cedes it to emerging competitors.