Author: Stella L ( [email protected] )
Data source: Footprint Analytics Blockchain Game Research page
Although the overall crypto market remained strong, the market value of the gaming sector fell by 19.3% to $22.3 billion. This month, the main focus of the market was on social platforms. TON obtained 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, on the other hand, was weak, falling from $3,353 to $3,292, a drop of 1.8%, and the ETH/BTC ratio hit a new low since September 2024.
Several important policy developments significantly impacted the crypto market. The Trump administration’s cryptocurrency regulatory executive order provided unprecedented clarity to the industry, with a particular emphasis on protecting self-custody rights and supporting stablecoin development. However, market sentiment cooled at the end of the month as Trump’s comments on international trade tariffs raised concerns about global economic growth.
The Trump family’s launch of $TRUMP and $MELANIA tokens on Solana has sparked a wave of volatility in the Memecoin sector. This wave of speculation has significantly diverted market attention and funding from other crypto sectors, including the blockchain gaming sector.
DeepSeek’s breakthrough in artificial intelligence also influenced market dynamics. This development accelerated the focus on decentralized AI infrastructure in the crypto ecosystem, and AI-related tokens rose this month.
Overview of the blockchain game market
In January, despite the overall crypto market remaining strong, the Web3 gaming sector faced resistance. The market capitalization of blockchain gaming tokens fell from $27.6 billion to $22.3 billion, a drop of 19.3%.
On-chain activity indicators also showed weakness, with monthly transaction count falling 7.2% to 550 million and transaction volume falling 12.4% to $230 million.
The TON Foundation announced on January 21 that it had obtained exclusive authorization for Telegram's blockchain infrastructure, marking an important turning point for the ecosystem. This exclusive cooperation requires all Telegram-based applications to migrate to TON within 30 days, which puts pressure on projects built on other chains. Although the TON Foundation will provide incentives for early adopters who complete the blockchain migration before February 21, it does bring substantial technical and community challenges to the affected gaming projects.
Just the day after the above announcement, LINE launched Mini Dapps and Dapp Portal through LINE NEXT, reflecting the emerging competition in the field of social platform games. Kaia Wave plans to launch 32 Mini Dapps in the first batch, showing a more controlled and ecosystem-oriented approach compared with Telegram's relatively open development environment.
These platform-level changes, coupled with declining market metrics, suggest that the Web3 gaming sector is entering a period of consolidation, where platform integration and user experience may take precedence over token economics. Telegram and LINE’s approach could significantly impact how blockchain gaming projects approach user acquisition and retention strategies in 2025.
Overview of blockchain game public chain
In January 2025, there were 1,697 active blockchain games, a small increase of 1.4% from December. Traditional market leaders maintained their position in terms of game distribution: BNB Chain (24.2%), Polygon (15.6%), and Ethereum (13.1%). However, this stability in game distribution contrasts with the significant changes in on-chain activity.
There is a clear trend of concentration in transaction activity, with three chains dominating. WAX leads with 180 million transactions, accounting for 32.4% of all game activity. opBNB ranks second with 87.2 million transactions (15.9% share), while Aptos records 37.5 million transactions (6.8% share). Together, these three chains account for more than 55% of all game transactions in January.
In terms of trading volume, Aptos topped the list with $51.9 million in trading volume (22.1% share), followed by Ronin with $49.5 million in trading volume (21.1% share). Immutable X ranked third with $19 million in trading volume (8.1% share).
Competition among chains for developers has intensified, with aggressive incentive programs being launched one after another. Sonic SVM and Galaxy Interactive's multi-million dollar funds target the intersection of Web3 games and AI, reflecting the market's growing attention to AI-enhanced gaming experiences. Meanwhile, Ronin Network's $10 million grant program extends beyond gaming to consumer applications and DeFi protocols to create a more comprehensive ecosystem.
Blockchain game investment and financing
Web3 game investment activity continued its downward trend in January 2025, with 6 funding events raising a total of $31.2 million. The decline in funding activity reflects broader market dynamics. The surge in speculative activity has significantly distracted market attention and funding from other crypto sectors, including the blockchain gaming sector.
Pixion Games led the funding round this month, raising $4 million in a strategic round led by Delphi Ventures, with participation from Spartan Capital, Sky Mavis, and Animoca Brands. The studio’s flagship game, Fableborne, combines ARPG mechanics with strategic base-building elements. The game’s success with Ronin has been particularly notable. Other notable game funding rounds include Drift Zone, BeraTone, and Nakamoto Games.
Infrastructure development remains a focus for investors, with two major financings: ZKcandy raised $4 million for its ZKsync-based gaming-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 testnet chain, the first game, and other on-chain assets.
