GuShiio.com In January 2025, while the overall encryption market performed strongly, the Web3 game sector faced significant pressure.
Author: Stella L (stela@footprint.network)
Data source: Footprint Analytics blockchain game Research page
Although the overall crypto market remained strong, the market value of the games sector fell 19.3% to US$22.3 billion. The main hot spots in the market this month are social platforms. TON received exclusive authorization for Telegram’s blockchain infrastructure, while LINE launched the Mini Dapps ecosystem through Kaia.
Macro Market Review
Bitcoin rose from $94,577 to $102,180, an increase of 8.0%. Ethereum’s performance was weak, falling from US$3,353 to US$3,292, a decrease of 1.8%, and the ETH/BTC ratio hit a new low since September 2024.
A number of important policy developments have significantly affected the trend of the encryption market. The executive order issued by the Trump administration on cryptocurrency regulation provides unprecedented clear guidance to the industry, with special emphasis on protecting self-custody rights and supporting the development of stablecoins. However, at the end of the month, Trump’s remarks on international trade tariffs raised concerns about global economic growth, and market sentiment cooled.
The $TRUMP and $MELANIA tokens launched by the Trump family on Solana triggered violent fluctuations in the Memecoin sector. This wave of speculation has significantly distracted the market’s attention and funds from other crypto sectors, including the blockchain game space.
DeepSeek’s breakthrough progress in the field of artificial intelligence has also affected market dynamics. This development has accelerated the focus on decentralized AI infrastructure in the crypto ecosystem, with AI-related tokens rising this month.
Overview of the blockchain game market
In January, although the overall crypto market remained strong, the Web3 games sector faced resistance. The market value of blockchain game tokens dropped from US$27.6 billion to US$22.3 billion, a drop of 19.3%.
Indicators of on-chain activity also showed weakness, with monthly transactions falling 7.2% to 550 million, and transaction volume falling 12.4% to US$230 million.
The TON Foundation announced on January 21 that it had received exclusive authorization for Telegram’s blockchain infrastructure, marking an important turning point for the ecosystem. The exclusive partnership requires all Telegram-based applications to migrate to TON within 30 days, putting pressure on projects built on other chains. Although the TON Foundation will provide incentives to early adopters who completed blockchain migration before February 21, it does pose substantial technical and community challenges to the affected game projects.
Just the day after the above announcement, LINE launched Mini Dapps and Dapp Portal through LINE NEXT, reflecting the emerging competitive trend in the field of social platform games. Kaia Wave plans to launch the first 32 Mini Dapps, demonstrating a more controllable, ecosystem-oriented approach than Telegram’s relatively open development environment.
These platform-level changes, coupled with declining market indicators, indicate that the Web3 games sector is entering a consolidation period, and platform docking and user experience may take precedence over token economics. Telegram and LINE’s approach may significantly affect how blockchain game projects handle user acquisition and retention strategies in 2025.
Overview of blockchain game public chain
In January 2025, there were 1,697 active blockchain games, a slight increase of 1.4% from December. Traditional market leaders maintain their position in game distribution: BNB Chain (24.2%), Polygon (15.6%) and Ethereum (13.1%). However, the stability of this game distribution contrasts sharply with the significant changes in activity on the chain.
Trading activities show a clear trend of concentration, with three chains occupying a dominant position. WAX leads the way with 180 million transactions, accounting for 32.4% of all game activity. OpBNB ranked second with 87.2 million transactions (15.9% share), while Aptos recorded 37.5 million transactions (6.8% share). These three chains together accounted for more than 55% of all game transactions in January.
In terms of trading volume, Aptos topped the list with US$51.9 million (22.1% share), followed by Ronin with US$49.5 million (21.1% share). Immutable X ranked third with a turnover of US$19 million (8.1% share).
Competition among various chains for developers has intensified, and aggressive incentive plans have been launched. Sonic SVM and Galaxy Interactive’s multimillion-dollar funds target the intersection of Web3 games and AI, reflecting the market’s growing focus on AI-enhanced gaming experiences. At the same time, Ronin Network’s $10 million subsidy plan, in addition to gaming, also extends to consumer applications and DeFi protocols to create a more comprehensive ecosystem.
Investment and financing of blockchain games
In January 2025, Web3 game investment activity continued its downward trend, raising a total of US$31.2 million in six financing events. The decline in financing activity reflects broader market dynamics. The surge in speculative activity has significantly distracted the market’s attention and funds from other crypto sectors, including the blockchain gaming space.
Pixion Games led this month’s financing campaign, raising US$4 million in a strategic round led by Delphi Ventures, with Spartan Capital, Sky Mavis and Animoca Brands participating. The studio’s flagship game, Fableborne, combines ARPG mechanisms with strategic base building elements. The game’s success on Ronin was particularly eye-catching. Other noteworthy game financing events include Drift Zone, BeraTone and Nakamoto Games.
Infrastructure development remains the focus of investors, with two important financings: ZKcandy raised $4 million for its ZKsync-based game-specific Layer 2 chain after successfully completing the open testnet phase. In addition, Hyve Labs raised $2.75 million to develop its core infrastructure, such as launching a test chain, first games and other on-chain assets.
