January 2025 Web3 Game Report 

Author: Stella L (stella@footprint.network) 
Data Source: Footprint Analytics Games Research Page

As broader crypto markets showed strength, the gaming sector faced notable pressure with its market cap declining 19.3% to $22.3 billion. The month was defined by platform consolidation, with TON securing exclusive rights for Telegram's blockchain infrastructure and LINE launching its Mini Dapps ecosystem through Kaia.

Monthly Market Review

Major policy developments significantly influenced the crypto market's trajectory. The Trump administration's executive order on cryptocurrency regulation provided unprecedented clarity for the industry, particularly emphasizing the protection of self-custody rights and support for stablecoin development. However, market sentiment was tempered in the final week as new international trade tariffs raised concerns about global economic growth.
The memecoin sector experienced extraordinary volatility following the launch of $TRUMP and $MELANIA tokens on Solana. This surge in speculative activity notably diverted attention and capital from other crypto sectors, including blockchain gaming.
Technological developments also shaped market dynamics, particularly following DeepSeek's breakthrough in artificial intelligence. This advancement accelerated interest in decentralized AI infrastructure within the crypto ecosystem, with AI-related tokens seeing an increase during the month. 

Web3 Game Market

On-chain activity metrics reflected similar weakness, with monthly transactions declining 7.2% to $549.2 million and trading volume dropping 12.4% to $234.8 million. 
Source: Web3 Game Daily Transactions

TON Foundation's January 21 announcement of exclusive blockchain infrastructure rights for Telegram marks a pivotal shift in the ecosystem. This exclusivity agreement, requiring all Telegram-based applications to migrate to TON within 30 days, has created immediate pressure on projects built on alternative chains. The migration deadline of February 21, while offering incentives for early adopters, poses substantial technical and community challenges for affected games.
LINE's strategic counter-move, launching Mini Dapps and Dapp Portal through LINE NEXT, represents an emerging competitive dynamic in social platform gaming. The initial rollout of 32 Mini Dapps through the Kaia Wave program signals a more controlled, ecosystem-focused approach compared to Telegram's open development environment. 
These platform-level changes, combined with declining market metrics, indicate the Web3 gaming sector is entering a period of consolidation where platform alignment and user experience may take precedence over token economics. The approaches of Telegram and LINE could significantly influence how blockchain games approach user acquisition and retention strategies through 2025.

Web3 Game Chains

Trading volume revealed a different competitive landscape, with Aptos emerging as the leader at $51.9 million (22.1% share), followed closely by Ronin at $49.5 million (21.1% share). ImmutableX secured the third position with $19.0 million in volume (8.1% share). 
Source: Trading Volume by Chain

The competition for developer mindshare intensified in January, with chains launching aggressive incentive programs. Sonic SVM and Galaxy Interactive's multi-million dollar fund targets the intersection of Web3 gaming and AI, reflecting growing interest in AI-enhanced gaming experiences. Meanwhile, Ronin Network's $10 million grant program represents a strategic pivot beyond gaming-exclusive focus, expanding into consumer applications and DeFi protocols to create a more comprehensive ecosystem.

Investment and Funding

Pixion Games led the month's funding activity, securing $4 million in a strategic round led by Delphi Ventures, with participation from Spartan Capital, Sky Mavis, and Animoca Brands. The studio's flagship title, Fableborne, represents an evolution in mobile Web3 gaming by combining ARPG mechanics with strategic base-building elements. The game's success on Ronin has attracted particular attention. Other notable game funding events included Drift Zone, BeraTone and Nakamoto Games.
Infrastructure development remained a key focus for investors, with two significant raises: ZKcandy secured $4 million for its gaming-focused Layer 2 chain powered by ZKsync, following successful completion of its open testnet phase. Hyve Labs raised $2.75 million to develop its core infrastructure, such as launching its testnet chain, first game and other on-chain assets.

Data for this report was obtained from Footprint’s Games Research page, a real-time dashboard with comprehensive and trusted Web3 game stats. Please contact us if you notice any chain or game not included and would like it integrated. You can also submit contracts here. 

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About Footprint Analytics 
Footprint Analytics is a comprehensive blockchain data analytics platform that simplifies complex analysis for businesses and projects in the Web3 ecosystem. It offers tailored solutions that eliminate the need for extensive expertise and infrastructure maintenance. The platform provides long-term growth tools designed to help build and manage communities step by step, emphasizing sustainable growth and user loyalty. By combining powerful analytics with community management tools, Footprint Analytics enables projects to leverage blockchain data effectively for decision-making and growth strategies across various sectors including GameFi, NFT, and DeFi.
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