According to a new report from DappRadar, blockchain gaming has experienced a notable slowdown.
Daily Unique Active Wallets (dUAW) dropped to 4.8 million, a 10% fall from March, and the lowest level seen this year. This decline is more than a monthly wobble - it could be an early signal that the sector is facing deeper shifts.
So what’s really going on, and could crypto gambling be heading down a similar path?
Blockchain games are losing players fast
Once the top-performing dapp category, blockchain gaming now shares the same 21% dominance as DeFi. Meanwhile, AI dapps are gaining ground, climbing to a 16% market share. That’s a clear sign users may be changing their preferences.
Simply said, attention seems to be moving toward products with practical use cases and those offering new excitement, especially ones in AI and real-world asset tokenization.
What’s causing this slowdown?
There are several factors combined that lead to this slowdown, including investment and hype dying down.
Investment is drying up
The total capital raised in blockchain gaming during April was just $21 million, a sharp 69% drop from March. That’s a red flag for a sector that was once flush with speculative funding.
The hype around “Play-to-Earn” is fading
Many early blockchain games offered token rewards as their main draw. But players today want more than flashy things. They want actual gameplay, and that’s where some titles are falling short.
Players are shifting their attention
With the emerging interest in AI, real-world assets, and new use cases, blockchain gaming is no longer the most exciting aspect of Web3, and users are good at following trends.
Web3 gaming isn’t dead, it’s just growing up
Despite the headline dip, the report paints a more nuanced picture behind the scenes. Several high-profile companies are still actively expanding into Web3:
- Ubisoft is launching a new blockchain-based title - Might & Magic: Fates, which should release by the end of this year
- Netmarble is introducing 7 blockchain games on Immutable
- Sega and Nexon are pushing forward with NFT-integrated IPs
Also important: 66% of blockchain gaming funding this year has gone into infrastructure, not just front-facing games. That means smarter, more stable ecosystems could be on the way, even if users aren’t feeling the impact just yet.
So yes, activity is down. But this might be less of a collapse and more of a clean-up phase. Some regrouping is happening, and soon we will see the results of it.
Is the same about to happen with crypto gambling?
Here’s the big question: if blockchain gaming is slowing down, will crypto gambling slow down, too?
So far, all signs point to no, and in fact, the gambling side of Web3 is still seeing strong numbers:
- In 2024, crypto gambling generated $81 billion in revenue, up nearly 80% from about $45 billion in 2023, showing rapid market expansion year-over-year.
- $26 billion was wagered in just the first quarter of 2025, compared to approximately $18 billion in Q1 2024, marking a 44% increase in wagering volume within one year.
- Industry forecasts predict $55 billion+ annually by 2032, suggesting a compound annual growth rate (CAGR) around 20-25%, signaling long-term growth despite short-term volatility.
Unlike blockchain games, which often rely on speculative tokens, crypto gambling is all about usability. Players want fast deposits, anonymous play, and instant withdrawals, and crypto delivers on all fronts.
Of course, risks remain. If global regulation tightens or crypto markets turn bearish, activity could fall. But for now, crypto casinos are growing, not shrinking.
As long as they continue solving real user problems, crypto gambling platforms are unlikely to suffer the same dip that’s hitting blockchain gaming. Changes are surely happening, but before every rise, we are bound to see some fall.
