Key Insights

As the early, speculation-driven P2E/GameFi bubble bursts, the industry is undergoing a 'reset'—projects must prioritise gameplay before integrating on-chain assets5 12.
Investment and user figures are rebounding: In 2024-2025, blockchain games' daily active wallets are projected to approach 5 million, with the market size expected to grow at a CAGR of 18-20%19 29 36.
Three key drivers of mass adoption: infrastructure that masks blockchain complexity (e.g., Ronin, Immutable, B3, etc.)6 10 22; the entry of traditional mobile/console IPs (MapleStory N, Yuga Labs, etc.)1 15; and an 'entertainment-first' content strategy that combines both casual and AAA experiences26 32 36.

I. From Collapse to Revival: The Current Landscape

90% of early projects collapsed, but survivors like Open Loot and Big Time have proven the viability of a 'game-first' model5.

Ronin has shed the Axie inflation baggage, with on-chain activity regaining momentum, marking it as a leading example of the 'second wave' of popular public chains6.

Community discussions reveal a shift in player sentiment: whereas the term 'scam' was prevalent in 2022, current conversations on Reddit and Twitter focus on balancing 'gameplay and rewards'7 11.

II. Driving Factors: Technology and Content

Infrastructure
- Dedicated L2/L3 solutions (such as Ronin and B3) have slashed Gas fees to around $0.001, supporting millions of concurrent users6 22.
- Platforms like Immutable and Sui offer comprehensive SDKs and fiat on-boarding, lowering the barriers for Web2 developers9 10.
Content Paradigm
- Casual: Low-barrier mini-games like Telegram Eggdrop, Notcoin, and Tapswap have significantly boosted new wallet numbers26 33.
- AAA: Titles such as Off The Grid and Rumble Kong League blend console-level quality with on-chain economics to attract core gamers33.
Economic Model
- A shift from high-inflation 'mint-and-sell' approaches towards NFT scarcity, skill-based and competitive rewards, and cross-game asset interoperability4 18 24.

III. Market and Capital Trends

In July 2024 alone, $60 million was raised, with funds primarily directed towards 'entertainment-first' and multi-game ecosystems36.

The market size was approximately $26.3 billion in 2023, with forecasts predicting it will exceed $130 billion by 2032, growing at around 19% CAGR29.

Investors are increasingly favouring projects backed by robust IP or established teams, leaving smaller studios vulnerable36 4.

IV. Challenges and Paths Forward

Barriers to Entry: Complex wallets and high GAS fees are being countered by solutions like account abstraction, gasless NFTs, and integrated fiat payment systems5 9.

Volatility Risks: Token price fluctuations and regulatory uncertainties are prompting a shift towards stablecoin settlements and an 'optional on-chain' approach12 31.

User Retention: To combat the attrition typical of P2E models, there is a focus on strengthening social guilds, fostering user-generated content, and enabling cross-game asset interoperability22 34.

V. Looking Ahead to 2025-2026

Daily active wallets could surpass 8 million, driven primarily by the mobile ecosystem and platforms like Telegram19 33.
Traditional publishers (such as EA, SEGA, etc.) and native Web3 studios are set for a clash as IP competition intensifies19 15.
Interoperability at the infrastructure level (such as Game Chains and cross-chain NFTs) might emerge as the next explosive driver of valuation22 29.

Conclusion

The resurgence of Web3 gaming is underway, but true mass adoption will depend on whether a seamless on-chain experience paired with high-quality content can continually attract and retain non-crypto-native players.

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72 days ago