The blockchain gaming industry is evolving towards more sustainable economics, with enhanced sentiment and market maturity as it reassesses its future, according to the Blockchain Game Alliance (BGA).
The Web3 gaming advocacy organization mentioned in its annual state of the industry report released on Wednesday that the industry is “transitioning beyond its speculative origins toward a more rigorously managed, product-driven future.”
A survey of over 500 global blockchain gaming professionals revealed that the level of optimism rose to 65.8% from its 2024 lows, with a shift in focus from token economics to sustainable revenue models.
“The most significant sign of the industry’s overall shift lies in its move towards sustainable economics.”
Current growth is now centered on delivering high-quality games, robust revenue models, and payment systems capable of supporting large-scale real-world commerce, the report highlighted.
A challenging time for Web3 gaming
Blockchain and Web3 gaming have transitioned from the peak enthusiasm of 2021, driven by a play-to-earn surge and speculative investment, to a downturn in 2024, following the collapse of P2E models, a drop in confidence, and diminishing funding, leading to studio closures and reputational damage.
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Annual funding plummeted to $293 million in 2025, down from $4 billion in 2021, pushing teams towards leaner, bootstrap-oriented operations. Notably, top-tier venture firms have paused all new Web3 gaming investments, and project token prices have decreased by over 90% from cycle highs.
Between 80% and 93% of Web3 games did not succeed, with average lifespans lasting only months and studios that raised substantial funds unable to maintain operations without ongoing capital injections.
On the road to recovery
Several factors were highlighted as contributing to the sector’s recovery, including regulatory changes and the rising popularity of stablecoins.
Animoca Brands co-founder Yat Siu indicated that recent crypto-friendly regulatory updates in the US allow companies to skip establishing nonprofit foundations for token launches.
The BGA stated that stablecoins have been game-changing for Web3 applications, providing gamers with “rapid, low-cost, borderless transactions devoid of the volatility linked to other crypto assets.”
Additionally, nearly 30% of respondents identified high-quality game launches as the key driver for industry growth.
Immutable’s VP of global sales, Andrew Sorokovsky, remarked that “despite negative headlines, blockchain gaming has become one of crypto’s most successful sectors — where quality projects are thriving, and real adoption is taking root.”
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