In the world of Web3, which is constantly evolving, the gaming sector has long been seen as the crown jewel.
However, as the ecosystem matures and competition intensifies, even gaming’s long-held dominance is starting to show signs of pressure. May 2025 has turned out to be a crucial month for blockchain-based gaming, highlighting not just ongoing engagement but also new problems, fresh competition, and the slippage of several formerly promising projects.
Although gaming remains in the lead among decentralized applications, it does so by the narrowest margin. The numbers show both stubbornness—and that there’s something to be vulnerable about—setting a stage for an unpredictable summer.
Gaming Still Leads, But Margins Are Slimming
In May, Web3 gaming boasts 4.9 million daily unique active wallets, a modest uptick from April’s total. But this doesn’t mean the medium is becoming a more commanding force in the Web3 space. If anything, Gaming’s slumping market share—19.4 percent versus 21 percent in April—suggests its reigning atop the Web3 pyramid might be more precarious than it seems.
Comparative user numbers are now nearly the same for DeFi, AI, and other next-gen applications, as our May data reveal. Following closely behind these nascent app categories are Social applications, which nabbed 17.1 percent of total user share in May, and NFTs, which captured 15.5 percent of total user share in May—both of which user bases appear to be growing at a nice clip. What’s cool is that users seem to want the interactions that these new app categories provide even more than they did when these same app categories were fresh and new on the scene.
Users seem to be paying less attention to gaming than before, even though gaming still has the most active users. It seems to be a race that is closer than ever and getting tighter all the time, with other forms of digital entertainment innovating and doing a better job of onboarding users. Gaming, then, has to onboard users just like those other forms of entertainment if it wants to stay in the lead.
Chains in Flux: opBNB Leads, But Rivals Catch Up
In May, opBNB continued to lead as the top gaming chain in terms of infrastructure. However, this may be changing soon; it’s impressive growth on alternative chains. Aptos surged by a whopping 22 percent, securing a very close second place to opBNB. In an even more impressive uptick, Sei made serious upward moves, gaining a fantastic 27 percent in May. Sei’s growth is thanks to insane levels of activity across several gaming applications.
Core not only survived but thrived, breaking into the top 10 chains for gaming with 15 percent growth—the only top 10 chain to post such a number. (Some other top 10 chains were flat or even negative during that time.) Thus, Core’s story also exemplifies the dynamic and competitive nature of the sector.
Developers and players are exploring faster, cheaper, and more scalable ecosystems. That’s led them to new venues and new types of interactions, as well as wider adoption of crypto-native behavior. For instance, racetracks and soccer fields are now being built in the metaverse.
In individual projects, World of Dypians topped the charts in May with 3.83 million daily users, firmly staking its claim as the month’s number-one Web3 game. On Sei, both Hotspring and Archer Hunter saw major growth, signaling a budding gaming scene on the chain. Meanwhile, PlayZap Games kept its upward momentum going, solidifying its place in the mid-tier of fast-growing titles.
With the user experience and gaming-specific performance in mind, chains that are gaming-focused could ensure that no one blockchain dominates for long. July and August could be especially volatile, driven in part by the price movement of Bitcoin and Ethereum, but also by successful or unsuccessful launches of big-name games on chains that compete with the Ethereum mainnet.
A Harsh Reality for Web3 Gaming Projects
Even with a lot of user numbers and enthusiasm around them, Web3 gaming is finding it hard to demonstrate real viability. Projects that have a lot of money and a lot of hype behind them are beginning to fold and are starting to show just how difficult it is to build something sustainable and long-lasting in that space.
A few well-known titles—including Nyan Heroes, Ember Sword, and The Mystery Society—have either shut down or gone dark. This points to a growing problem: While it’s relatively easy to construct and promote a Web3 game, keeping it economically viable, engaging, and trusted by its community over the long term is quite a different matter.
Nonetheless, lost hope there is not. June is crammed full of high-stakes gaming events that could, just might, rekindle momentum. SERAPH Season 3 comes roaring in with a $5 million SERAPH prize pool that couldn’t fail to attract competitive gamers and a crowd of spectators. Meanwhile, card battler enthusiasts could see rekindled interest as Gods Unchained launches its new expansion pack. And Tokyo Beast is promising a massive, $1 million championship that should deliver both entertainment and visibility.
Looking Ahead: Will Gaming Keep Its Top Spot?
As the data for May demonstrate, Web3 gaming continues to be the most vibrant sector. This is something of a consolation, since it obviously has its own pressures to deal with. Internal challenges to major projects threaten their stability. They also threaten the very real possibility that the top Web3 gaming projects don’t last much longer in the space. Meanwhile, other sectors—social media, DeFi, and AI applications, for instance—are gunning for the same no-man’s-land that Web3 gaming currently occupies.
June now on, the gaming world will continue its surge of unprecedented activity. It will push the gaming industry to the max around a key time for the sector, as the Game Developers Conference and the Electronic Entertainment Expo, or E3, both happen in June. These are not just appearances; they promise blockbuster levels of excitement, how well the gaming industry can execute around them, retain users, and change their fundamental business model to make it less tied to the outmoded big tech infrastructure of the past will determine if the gaming sector holds onto its crown or cedes it to some up-and-coming competitor.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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