In 2024, the Web3 gaming industry is in a complex situation, and while making significant progress, it is also facing many challenges. Although the number of daily active users has surged by more than 300%, and traditional game companies have begun to make specific arrangements in this field, from the perspective of market performance, the market value of this sector has only increased by 60.5%, significantly lagging behind the Meme coin and AI sectors. As Bitcoin hits a record high and various crypto sectors flourish, a key question emerges: "Have Web3 games missed the best opportunity for development in this bull market?"
However, behind these surface data, 2024 marks an important transition period for the industry. The industry has moved from a purely speculative phase to maturity. This report will analyze how Web3 games evolve in the market cycle in 2024, exploring the key indicators, technological advances, and strategic shifts in the sector. From infrastructure development to user engagement models, we will explore how the industry can build sustainable growth while addressing the challenges of mainstream adoption.
Note: Unless otherwise stated, all data in this report is as of December 15, 2024. Data sources are Footprint Analytics and CoinMarketCap .
Overview of key indicators for the year
Market value: $31.8 billion, up 60.5%
Transaction volume: $5.2 billion, up 18.5%
Number of transactions: 5.3 billion, down 30.3%
Daily active users: 6.6 million at the end of the year, an increase of 308.6% compared to the beginning of the year;
Active games: 1,361 of 3,602 games remain active (37.8%);
Annual funding: 220 funding events, totaling $910 million;
Leading public chains:
Trading volume share: BNB Chain (23.1%), Ethereum (17.6%), Blast (9.2%);
Transaction volume share: WAX (33.6%), Aptos (11.6%), Ronin (6.1%);
Daily active users: opBNB (2.2 million), Ronin (1.1 million), Nebula (458,000) (daily average in December).
Market performance analysis
Market value performance
The Web3 gaming sector achieved strong growth in 2024, but underperformed other crypto sectors. According to Footprint Analytics , the market value of gaming tokens reached $31.8 billion at the end of the year, up 60.5% from the previous year. Although the sector hit a year-to-date high of $47.4 billion in March, it is still significantly lower than the historical high of $114.1 billion set in November 2021.
Although the overall crypto market performed strongly in the second half of 2024, especially in the last two months of the year driven by Bitcoin, game tokens lagged behind other sectors. CoinMarketCap data shows that Web3 games ranked eighth among the top ten sectors in market capitalization growth, significantly behind the leading sectors: Meme Coin (421.1%), AI and Big Data (168.0%) and Solana Ecosystem (124.1%).
This poor performance also extends to community attention. Among the most popular sectors on CoinMarketCap , Web3 games only accounted for 6.7% of the views in the top ten sectors, ranking ninth, as the focus throughout the year was mainly on Meme coin-related projects.
Volume Analysis
The Web3 Gaming sector's key indicators in 2024 showed mixed performance, with transaction volume increasing but the number of transactions continuing to decline.
Trading volume trends
In 2024, the total transaction volume of Web3 games reached 5.2 billion US dollars, an increase of 18.5% from 2023. Although the downward trend since 2021 has been reversed, the transaction volume is still significantly lower than the peak of the previous cycle. The data in 2024 is only 6.2% of the peak in 2021 (84.1 billion US dollars) and 15.1% of the transaction volume in 2022 (34.5 billion US dollars).
Transaction Count Trend
The total number of transactions in 2024 reached 5.3 billion, a decrease of 30.3% from the previous year. Although this level is comparable to the 5.1 billion transactions in 2021, it fails to reverse the downward trend that began in 2022.
User Engagement
Daily active users (DAU) grew significantly throughout 2024, increasing from an average of 1.6 million DAUs in January to 6.6 million DAUs in December, a year-over-year increase of 308.6%. This growth surpassed the previous cycle peak of 1.8 million DAUs in November 2021. While these data may include some bot activity, this growth still demonstrates significant user engagement in the industry.
Ecosystem Development
Competition and Evolution of Public Chains
Performance analysis of major public chains
In 2024, the dominance of different public chains in Web3 games has changed significantly, with each chain showing different advantages in terms of transaction volume, number of transactions, and user engagement.
Transaction volume distribution of each chain
BNB Chain maintained its dominance in terms of transaction volume, achieving $1.2 billion in transaction volume (23.1% market share), followed by Ethereum with $920 million (17.6%). Blast and Ronin accounted for 9.2% and 9.0% of the market share respectively.
Number of transactions per chain
Despite a 30.3% drop in transactions across the industry, some public chains showed strong performance. WAX led with 1.8 billion transactions (33.6% of total). Aptos emerged as a dark horse with its "tap-to-earn" Telegram game Tapos, reaching 620 million transactions (11.6%), of which 540 million transactions were generated in August alone. Ronin and opBNB maintained 321 million and 318 million transactions, respectively.
Number of users on each chain
User activity across chains showed significant growth, especially in the second half of 2024. opBNB emerged as a dark horse in terms of user engagement, with an average daily active user of 2.2 million in December, surpassing the long-term leader Ronin (1.1 million). Nebula, a SKALE Layer 2, ranked third with an average DAU of 458,000. Public chains such as NEAR, Sui, and Sei ranked in the top ten in DAU, demonstrating the expansion of the ecosystem's competitive landscape and users' willingness to try new platforms.
The trend of diversified use of each chain shows that the ecosystem is maturing, and different public chains are finding their own positions for various game experiences and user preferences. The main network has evolved from just providing basic blockchain facilities to a comprehensive platform for game developers. The Arbitrum Foundation's 2 billion ARB game catalyst plan, the Starknet Foundation's 50 million STRK token distribution plan, and the important Grant plan from Sui and Xai all show how each chain can attract and retain high-quality game projects through strategic incentives.
Technical infrastructure improvements
Capacity increase
Blockchain processing power has increased significantly, with the network currently processing more than 50 times more transactions per second than four years ago. This growth is due to the rise of Ethereum Layer 2 and Layer 3 networks, including Immutable zkEVM, game chains based on Avalanche L1, Oasys, SKALE, Arbitrum Orbit, and other high-throughput blockchains such as Solana, Sui, and Aptos.
Game-specific chains have also made significant progress. Ronin announced its Layer 2 plan, Ronin zkEVM, in June 2024, enabling Ronin developers to create their own zkEVM Layer 2. Immutable zkEVM has taken a strategic step towards greater accessibility by removing the deployment whitelist and enabling permissionless deployment. In addition, Avalanche has completed the most important "Avalanche9000" upgrade since the mainnet launch in 2020, focusing on solving obstacles to customized L1 builds and improving interoperability.
Gas Fees Reduction
Ethereum's "Cancun" upgrade (also known as "Proto-Danksharding" or "EIP-4844") in March 2024 was a major milestone that significantly reduced fees on the L2 network. The impact was significant, with gas fees dropping from a few dollars to a few cents or even lower, eliminating one of the biggest friction points facing blockchain game developers and players.
Improved cross-chain interoperability
The Chainlink Cross-Chain Interoperability Protocol (CCIP) has seen significant development in 2024, enabling developers to create games that interact with multi-chain assets. This improvement significantly increases the interoperability of in-game items.
The adoption of standardized formats for digital assets, especially ERC-721 and ERC-1155, has become more widespread. These standards ensure that in-game NFTs can be recognized and used across various games and platforms, simplifying asset transfers and interactions.
2024 also saw a notable rise in decentralized platforms that support cross-chain gaming. Platforms such as Portal, Fractal ID, and Web3Games provide the necessary infrastructure for seamless asset transfers and interactions between different blockchain ecosystems.
Project Development
2024 was a big year for Web3 gaming. In addition to the entry of traditional gaming companies, the ecosystem also witnessed several major game launches. Highly anticipated games such as Off The Grid and MapleStory Universe entered the early access phase, while Illuvium finally officially launched. Pirate Nation successfully completed its Token Generation Event (TGE) and launched a successful "play-to-airdrop" campaign.
Active Game Analysis
As of November 30, 2024, the total number of blockchain games reached 3,602, an increase from 2,997 in January. However, the active game metric shows some challenging trends. Of the total number of games, only 1,361 (37.8%) remain active on the chain, which means that 2,241 (62.2%) are inactive. In addition, despite the increase in the total number of games, the number of active games has actually decreased from 1,387 in January.
A deeper analysis of user engagement metrics shows further market concentration. The number of games with more than 100 monthly active users (MAU) drops from 586 in June 2022 to 522 by the end of 2024. In November 2024, 161 games (4.5% of the total) achieve more than 10,000 MAUs, of which 96 games (2.7% of the total) exceed 100,000 MAUs.
This user concentration trend indicates that the market is maturing and successful games are attracting a larger audience. This phenomenon is influenced by multiple factors, including fierce competition, fast iteration strategies, and the "head effect" formed by top games in the ecosystem.
Innovation landscape
Cross-platform gaming trends
Mobile gaming, with its emphasis on accessibility and seamless user experience, has established itself as the dominant platform for Web3 gaming in 2024. The mobile-first approach has influenced the way developers design blockchain games, focusing on intuitive interfaces and a streamlined onboarding process. Mobile games account for 29.4% of newly released Web3 games in 2024.
Social platforms, especially Telegram, have become a powerful catalyst for Web3 game adoption, accounting for 20.9% of newly released Web3 games. Telegram's success stems from its large user base, simplified in-app experience, and ability to bypass traditional app store restrictions. The platform's influence peaked in the third quarter of 2024, with 11 games exceeding 10 million MAU. It is worth noting that TON successfully converted this large user base into on-chain participants, generating spillover effects in Web3 games, Meme coins, and DeFi sectors. This success has prompted multiple blockchain networks outside of TON to compete for Telegram traffic, and Aptos, Sui, Core, etc. have launched or supported Telegram-based games.
Similarly, Line announced plans to launch 20 mini dApps in December 2024, signaling a growing interest in blockchain gaming integration among mainstream messaging platforms.
The console gaming space remains relatively untapped in Web3 gaming, with major manufacturers Microsoft and Sony maintaining a cautious stance. However, new approaches are beginning to emerge to bridge this gap. Some developers, such as Gunzilla Games' Off The Grid, have chosen to separate core gameplay from blockchain functionality in line with traditional console game expectations. Meanwhile, blockchain platforms are beginning to develop their own Web3 gaming consoles, such as Sui's SuiPlay0X1 and Solana's Play Solana Gen1 (PSG1), potentially creating a new category of dedicated Web3 gaming devices.
Traditional gaming companies enter the market
2024 marks a major shift in traditional gaming companies’ attitudes toward blockchain gaming, with major gaming studios moving from experimental moves to strategic development.
Ubisoft released Champions Tactics: Grimoria Chronicles on Oasys Layer 2 HOME Verse in October. This tactical RPG implements a series of NFT-based features while maintaining traditional game elements.
Square Enix is strengthening its blockchain sector through strategic investments and partnerships. In addition to investing in gaming platforms Elixir Games and HyperPlay, the company also announced that it will bring its Symbiogenesis games to HyperPlay.
Sony Group’s involvement marks a significant push into blockchain gaming, both through investment and infrastructure development. While supporting double jump.tokyo Inc.’s $10 million Series D funding round, Sony also announced the launch of Soneium, a Layer 2 network designed to connect Web3 innovations with consumer applications in the gaming and entertainment sectors.
Integrating AI into game development
As artificial intelligence revolutionizes various industries in 2024, the Web3 gaming sector has become a major beneficiary of AI innovation, opening up new opportunities for game development and player experience.
AI has revolutionized in-game interactions and content generation. Game studios are leveraging AI to create more complex non-player characters (NPCs) that can adapt to player behavior and generate personalized quests based on individual gaming history and preferences. This personalization enhances player engagement by making the gaming experience more relevant and personal.
On the development side, AI has significantly simplified the creative process. Developers are using AI tools to automatically generate game environments and assets, significantly reducing production time and costs. This gives small teams the opportunity to create high-quality games that can compete with large studios.
AI is also enhancing the operational aspects of Web3 games. The technology is used to automate game testing processes and monitor on-chain transactions to prevent potential fraud or cheating, which is especially important in games with complex economic systems. In addition, AI algorithms are helping to optimize game economies and token models, solving one of the main challenges in Web3 game design.
Investment landscape
Overview of Financing Events of the Year
Web3 games raised $910 million across 220 funding events in 2024. While the funding amount is down 7.3% from 2023 and significantly lower than the 2021-2022 boom ($3.2 billion and $2.7 billion, respectively), the number of funding events is up 48.7% from 2023, indicating continued investor interest despite smaller deal sizes.
This year showed a clear trend towards early-stage investment, with 76 early-stage deals (34.6% of total events) compared to only 20 Series A or later rounds (9.1%). This trend suggests that while new projects continue to attract initial funding, many projects in the 2021-2022 boom face challenges in obtaining follow-on financing.
Among investors, Animoca Brands maintained its leading position with 38 investments, up 192.3% from 2023, and participated in 17.3% of all financing events in 2024. Spartan Group and Big Brain Holdings followed closely with 22 and 15 investments respectively, and the top ten investors completed a total of 152 investments.
Major financing events
Seven projects raised more than $20 million in a single event in 2024. Azra Games led the way with a $42.7 million Series A round, focusing on bringing console-level gaming experiences to mobile platforms.
In terms of cumulative financing, Monkey Tilt raised $51 million through two rounds of financing. They are a platform with a hybrid model of "games-entertainment-gambling". Gunzilla Games received four rounds of financing from well-known investors including VanEck, Coinbase Ventures, Delphi Ventures and Avalanche's Blizzard Fund, demonstrating strong investor confidence.
Strategic investment trends
As the industry matures from the frenzy of 2021-2022, the focus has shifted to fewer but higher quality projects, with investors becoming more selective in their approach.
Funding is increasingly targeting gaming infrastructure and development tools, rather than just games themselves. Notable examples include NPC Labs’ $18 million seed round for building Web3 games on Base, and Alliance Games’ $5 million Series A for AI-driven decentralized infrastructure. This trend reflects investors’ growing interest in foundational technologies that can support multiple games and platforms.
Platform and multi-chain development attracted a lot of attention, especially projects building a cross-chain gaming ecosystem. Seeds Labs raised $12 million for its flagship product Bladerite on Solana, while B3 launched the Open Gaming Layer, demonstrating investor interest in expanding cross-chain gaming capabilities.
Additionally, new gaming categories gain significant investor attention in 2024, especially Telegram-based games and casino gaming projects, despite regulatory challenges.
Industry Evolution and Future Outlook
The Web3 gaming industry has experienced a significant evolution in gaming models in 2024. The previous cycle-dominated "play-to-earn" model gave way to more sustainable methods. Telegram-based "tap-to-earn" games demonstrated unprecedented user acquisition capabilities, while Pirate Nation and Pixels' "play-to-airdrop" strategies provided new user acquisition methods. At the same time, mature projects turned to a "play-and-earn" model that prioritized gameplay over financial incentives.
However, the space faces ongoing challenges. Technical barriers remain significant, particularly in achieving seamless blockchain integration without compromising the gaming experience. Regulatory uncertainty, particularly around gambling features and token classification, continues to influence development decisions.
Most critically, maintaining on-chain engagement becomes a fundamental problem. This is particularly evident in the performance of Telegram games: Hamster Kombat's monthly active users fell from over 100 million in September to 22.9 million in mid-December, with only 0.0004% of users participating in on-chain gaming activities. While other Telegram games show higher conversion rates, most are still below 1%. It is worth noting that these metrics specifically reflect on-chain gaming activities, as the core gameplay of most Telegram games remains off-chain, and users may be more active in other sectors such as Meme coins or DeFi. This highlights the ongoing challenge of converting platform users into active blockchain game players.
Outlook 2025: Reinventing relevance
As Web3 games seek to re-establish their place in the crypto landscape, several key trends emerge as potential catalysts for transformation:
Social platform integration stands on the most promising path to mainstream relevance. The stunning success of Telegram Games demonstrates the power of meeting users where they are, with platforms like Line and TikTok poised to take off. This approach may ultimately solve the user acquisition challenge in the space by leveraging existing social networks rather than building communities from scratch.
AI integration will evolve from a marketing feature to a fundamental driver of innovation. In addition to enhancing game development and NPC interactions, AI may solve the field’s core challenges in economic design and user retention. These are areas where Web3 games have traditionally struggled to compete with traditional gaming experiences.
Sustainable growth through integration may ultimately determine the relevance of the space. Success may come not from competing with traditional gaming or other crypto sectors, but from integrating seamlessly with them. This means focusing on how blockchain can enhance rather than define the gaming experience, developing more sophisticated token economics, and prioritizing user experience over crypto-native features.
In summary, the role of Web3 games in the crypto ecosystem may not be about dominance, but about integration. By cleverly connecting traditional games, social platforms, and blockchain technology, Web3 games are expected to create real innovative value. This evolution will not only help the industry break through the current limitations of "another crypto vertical", but is also likely to become a key force in reshaping the future of the gaming industry.
This report is an annual report jointly released by Footprint Analytics and CoinMarketCap Research.
