Blockchain gaming enters reset phase, report finds
The 2025 Blockchain Game Alliance (BGA) State of the Industry Report paints a picture of an industry in correction, as the report stated that blockchain gaming moves away from speculative growth models and towards operational focus and product delivery. The report describes a sector leaving behind the “token-first” era that defined the last market cycle, replacing it with an emphasis on playable games, sustainable revenue, and long-term engagement.
At the centre of this transition is a sharp contraction in funding. According to the report, the annual investment into blockchain gaming fell to an estimated $293 million in 2025. The figure is a steep decline from $4 billion in 2021 and a peak of $10 billion in 2022. The report frames this downturn as a shakeout, with underfunded or poorly structured projects exiting the market while more disciplined teams remain active.
Sebastien Borget, Co-President of the Blockchain Game Alliance, said the findings reflect a maturing ecosystem. “This year’s findings show an industry evolving toward greater discipline, deeper engagement, and long-term viability.”
Despite reduced capital inflows, industry sentiment remains primarily positive. According to the survey, 65.8 percent of respondents said they are optimistic about the trajectory of blockchain gaming over the next 12 months. This confidence, the report notes, is more grounded than in previous years, with expectations tied to delivery rather than hype.
Alessia Baumgartner of DWF Labs described the current phase as a necessary reset. “The space is in a reset phase, where the teams that focus on building genuinely good games first are the ones likely to push things forward. It will be steady progress and not hype-driven growth.”
Geographic shifts reshape the global workforce
The report also highlights changes in where blockchain gaming talent comes from. Asia and Europe previously dominated industry participation, but the 2025 data show a broader geographic footprint.
The report finds that the Middle East and North Africa (MENA) region recorded the fastest growth, with participation rising to 19.8 percent in 2025, compared with just 1 percent in 2021. The report links this rise to regional investment in digital infrastructure, gaming, and Web3 initiatives, as well as an increasing number of locally based studios and accelerators.
Meanwhile, Africa emerged as the youngest talent pool in the industry. Nearly 40 percent of African respondents were aged between 18 and 24 years old. The report suggests this demographic trend could influence how games are designed, marketed, and monetised over the coming years.
Nzubechukwu Ezudo of Superteam Nigeria pointed to the untapped potential in the region. “[The] African talent is highly undervalued and very hungry to prove a point. That sense of urgency gets them punching above their weight class. The beauty of this is [that] you have talent that is seeking to be world-class. The ROI [return on investment] of investing in African talent is exponential if explored.”
AI adoption accelerates across studios
Technology adoption remains a core theme of the report, with artificial intelligence identified as a central driver of productivity and scale. Nearly half of respondents, 45.7 percent, described AI as a “game-changing technology” for blockchain gaming. Only 7.1 percent said they were not using AI at all.
Studios are applying AI across multiple functions. Marketing and communications content was the most common use case, cited by 37 percent of respondents. Virtual agents followed at 34.2 percent, while 32.8 percent reported using AI in game design and content creation.
Simon Davis of Mighty Bear Games said AI-native teams are gaining an edge over traditional studios. “AI-native teams are outproducing legacy studios at a fraction of the cost and headcount. When the meta shifts, you need to ship in days, not months.”
The report suggests that AI is no longer viewed as experimental tooling but as core infrastructure. Teams using AI are able to iterate faster, respond to player behaviour, and operate with smaller teams during a period of constrained funding.
Stablecoins gain traction as a payments layer
Alongside AI, stablecoins emerged as a practical financial tool for blockchain gaming. More than a quarter of respondents, 27.3 percent, identified stablecoins as a key success driver for the sector.
According to data, stablecoins processed $27.6 trillion in transfer volume in 2024, underscoring their growing use as a settlement layer across digital markets. In gaming, stablecoins are increasingly used for tournament prizes, in-game rewards, and cross-border payments.
The report also notes that stablecoins are also easier for new users to understand than native game tokens, lowering friction for players unfamiliar with crypto markets.
Reputation and user acquisition remain core challenges
Despite progress in tooling and geography, the report identifies persistent threats facing blockchain gaming. It said that reputation remains a major concern, with 36.0 percent of respondents citing “scams, fraud, or rug pulls” as the greatest threat to industry credibility. High-profile failures from earlier market cycles continue to affect public perception.
“The industry needs real gamers, not crypto gamblers,” Dennis Kirsch of Alliance Games said.
User acquisition was highlighted as another pressure point. Traditional UA channels have become increasingly expensive, with iOS cost-per-install now exceeding $4 per user. For smaller studios operating under tighter budgets, scaling player numbers has become harder.
The report warns that acquiring users without keeping them engaged offers little value. As a result, studios are shifting focus towards community-driven growth, gameplay depth, and retention metrics rather than raw download numbers.
Clear priorities set for 2026
The BGA report shows a narrowing of priorities across the industry. Respondents identified three main drivers of success for 2026.
High-quality game launches ranked first, cited by 29.5 percent of professionals. Sustainable, revenue-driven business models followed at 27.5 percent. And, stablecoin adoption in payments ranked close at 27.3 percent.
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