Blockchain Gaming Sees 386% Surge in Onchain Activity in January

Blockchain gaming has entered a period of rapid expansion, with onchain activity in January tripling compared to the same period last year, according to a new report from blockchain analytics firm DappRadar.

The report, published on Feb. 13, revealed that Web3 games saw over 7 million unique active wallets (UAW) daily throughout January—a staggering 386% increase from the previous year. Analysts suggest this growth underscores the sector’s resilience and signals an industry-wide shift toward greater adoption despite market fluctuations.

According to DappRadar analyst Sara Gherghelas, blockchain gaming is moving toward a more mature phase, supported by technological advancements such as layer-2 scaling solutions, evolving token economies, and high-profile collaborations. One notable example is Gunzilla Games’ AAA title Off The Grid, which has garnered industry attention.

AI Integration Emerges

One of the key drivers of blockchain gaming’s growth has been the rise of new ecosystems, some of which do not yet meet AAA gaming standards but are making technical strides. OpBNB led the way as the top-performing blockchain for gaming in January, followed closely by Matchain. Meanwhile, Polygon recorded a 100% surge in gaming activity compared to the previous month.

Artificial intelligence is also playing an increasing role in the industry, with several projects integrating AI into gameplay. This trend extends beyond gaming, with stablecoin issuer Tether announcing its own AI initiatives on Feb. 6, including a translator, voice assistant, and Bitcoin wallet assistant.

Across the broader decentralized application (DApp) ecosystem, gaming remains a dominant category, with 26.7 million daily UAW recorded in January. However, DeFi still maintained a slight lead over gaming, outperforming the sector by a narrow 1% margin.

Investment in Blockchain Gaming Declines

Despite the significant growth in player engagement, investment in blockchain gaming and metaverse projects saw a downturn. According to DappRadar, funding in the sector totaled $1.8 billion in 2024, marking a 38% decline compared to the previous year.

Gherghelas explained that the drop in investments aligns with broader economic trends, as firms are focusing on deploying previously raised capital rather than securing new funding. However, she remains optimistic, noting that key funding rounds continue to signal confidence in Web3 gaming infrastructure and innovation.

As blockchain gaming continues to evolve, developers are prioritizing gameplay mechanics, reward structures, and community engagement—indicating that the sector’s long-term growth potential remains strong despite short-term investment fluctuations.