January 2025 Web3 Game Market Analysis: Decrease in Activity, Intensified Platform Competition

Despite the overall strong performance of the cryptocurrency market, the gaming sector's market capitalization has decreased by 19.3% to $22.3 billion. This month's market focus has been on social platforms, with a blockchain project obtaining exclusive authorization for the blockchain infrastructure of a certain instant messaging application, while another social platform has launched a small decentralized application ecosystem.

Macroeconomic Market Review

The price of Bitcoin rose from $94,577 to $102,180, an increase of 8.0%. Meanwhile, Ethereum performed poorly, falling from $3,353 to $3,292, a decrease of 1.8%, with the ETH/BTC ratio hitting a new low since September 2024.

Several important policy developments have significantly impacted the trends in the crypto market. The executive order on cryptocurrency regulation issued by the U.S. government provides clear guidance for the industry, emphasizing the protection of self-custody rights and supporting the development of stablecoins. However, remarks at the end of the month regarding international trade tariffs have raised concerns about global economic growth, leading to a cooling of market sentiment.

A certain political figure's family launched a token on a certain public blockchain, which triggered significant volatility in the Memecoin sector. This wave of speculation significantly diverted market attention and funds from other cryptocurrency sectors, including the blockchain gaming field.

Breakthrough advancements in the field of artificial intelligence have also influenced market dynamics. This progress has accelerated the focus on decentralized AI infrastructure within the cryptocurrency ecosystem, with AI-related tokens experiencing an increase this month.

Overview of the Blockchain Gaming Market

In January, despite the overall cryptocurrency market remaining strong, the Web3 gaming sector faced resistance. The market capitalization of blockchain gaming tokens dropped from $27.6 billion to $22.3 billion, a decline of 19.3%.

On-chain activity metrics also showed weakness, with monthly transaction count declining by 7.2% to 550 million transactions, and trading volume decreasing by 12.4% to $230 million.

A certain blockchain project announced that it has obtained exclusive authorization for the blockchain infrastructure of a certain instant messaging application, marking an important turning point for the ecosystem. This exclusive collaboration requires all projects based on the application to migrate to the designated blockchain within 30 days, putting pressure on projects built on other chains. Although incentives will be provided for early adopters, it indeed poses substantial technical and community challenges for the affected gaming projects.

The day after the above announcement, another social platform launched a small decentralized application and application portal, reflecting the emerging competitive landscape in the social platform gaming sector. The first batch plans to launch 32 small decentralized applications, showcasing a more controllable, ecosystem-oriented approach compared to the relatively open development environment of the former.

These platform-level changes, combined with the decline in market indicators, suggest that the Web3 gaming sector is entering a consolidation phase, where platform integration and user experience may take precedence over token economics. The different approaches of social platforms could significantly impact how blockchain gaming projects handle user acquisition and retention strategies in 2025.

Overview of Blockchain Game Public Chains

In January 2025, the number of active blockchain games reached 1,697, a slight increase of 1.4% compared to December. Traditional market leaders maintained their position in game distribution: certain chain (24.2%), certain polygon network (15.6%), and Ethereum (13.1%). However, this stability in game distribution sharply contrasts with the significant changes in on-chain activity.

Transaction activities show a clear concentration trend, with three chains dominating. One chain leads with 180 million transactions, accounting for 32.4% of all gaming activities. Another chain ranks second with 87.2 million transactions, holding a 15.9% share, while a third chain recorded 37.5 million transactions, accounting for a 16.8% share. Together, these three chains accounted for over 55% of all gaming transaction volumes in January.

In terms of trading volume, a certain chain ranks first with a transaction amount of $51.9 million, holding a share of 22.1%, followed closely by another chain with a transaction amount of $49.5 million and a share of 21.1%. Another chain ranks third with a transaction amount of $19 million, holding a share of 18.1%.

Competition among various chains to attract developers is intensifying, with many launching aggressive incentive programs. Multiple funds are targeting the intersection of Web3 gaming and AI, reflecting the growing market interest in AI-enhanced gaming experiences. Meanwhile, a certain network's $10 million grant program extends beyond the gaming sector to consumer applications and DeFi protocols, aiming to create a more comprehensive ecosystem.

Blockchain Game Investment and Financing Situation

In January 2025, investment activities in Web3 games continued to decline, with 6 financing events raising a total of $31.2 million. The decrease in financing activities reflects broader market dynamics. The surge in speculative activities has significantly diverted market attention and funds from other crypto sectors, including the blockchain gaming sector.

A certain gaming company is leading this month's financing activities, raising $4 million in a strategic round of financing, with several well-known investment institutions participating. The studio's flagship game combines ARPG mechanics with strategic base-building elements. The success of this game on a certain blockchain is particularly noteworthy. Other notable game financing events include several emerging projects.

Infrastructure development remains a key focus for investors, with two significant financings: one project raised $4 million for its game-specific chain based on a certain Layer 2 chain after successfully completing the open testnet phase. Additionally, another project raised $2.75 million for the development of its core infrastructure, such as launching the testnet chain, the first game, and other on-chain assets.