BGA: Web3 Games Shift Towards Sustainable Development, Confidence Returns

CN
3 hours ago

The blockchain gaming industry is transitioning to a more sustainable economic model, enhancing market confidence and maturity during the process of readjusting development expectations, according to the Blockchain Game Alliance (BGA).

This Web3 gaming advocacy organization stated in its annual industry status report released on Wednesday that the industry is "moving beyond its early speculative nature towards a more regulated, product-oriented future."

In a survey of over 500 blockchain gaming practitioners worldwide, industry optimism rebounded from a low of 65.8% in 2024, with a shift in focus from token economics to sustainable revenue models.

The report noted that current industry growth is centered on providing high-quality games, robust revenue models, and payment infrastructure that supports large-scale real-world transactions.

Blockchain and Web3 games have experienced significant volatility since the peak frenzy in 2021. At that time, the industry thrived due to the explosion of the "Play-to-Earn" (P2E) model and an influx of speculative capital. However, with the collapse of the P2E model, declining confidence, funding exhaustion, studio closures, and reputational damage, the industry hit a low point in 2024.

Funding for the entire year of 2025 plummeted to $293 million, down from a high of $4 billion in 2021, forcing teams to shift to streamlined, self-funded operational models. Top venture capital firms paused all new investments in Web3 games, and project token prices plummeted over 90% from their cyclical highs.

Approximately 80% to 93% of Web3 games have declared failure, with an average lifespan of only a few months, even studios that raised millions of dollars could not sustain operations without ongoing funding injections.

The report highlighted several factors contributing to the recovery of this battered industry, including changes in the regulatory environment and the increasing popularity of stablecoins.

Animoca Brands co-founder Yat Siu stated that recent friendlier regulatory changes in the U.S. regarding cryptocurrencies mean that companies no longer need to rely on establishing non-profit foundations when planning token issuance.

BGA noted that stablecoins are transformative for Web3 games, providing players with "fast, low-cost, borderless transactions while avoiding the volatility of other crypto assets."

Additionally, nearly 30% of respondents believe that the release of high-quality games is the most important factor driving industry growth.

Andrew Sorokovsky, Vice President of Global Sales at Immutable, stated, "Despite the constant negative news, blockchain gaming has now become one of the most mature sectors in the crypto space—high-quality projects are thriving, and real user adoption is taking root."

Related: Despite the Fed's policy shift, Bitcoin (BTC) rebound remains hindered at $94,000

Original article: “BGA: Web3 Games Shift to Sustainability, Confidence Returns”

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