Crypto Gaming Faces Major Decline and Shift in 2025
In 2025, venture capital funding for crypto gaming largely dried up, leading to multiple game closures, layoffs, and abandoned player communities. Many crypto games halted development or pivoted away from the crypto and gaming sectors as funding waned.
Crypto gaming tokens underperformed significantly as an investment model. No gaming tokens ranked in the top 150 by market capitalization, with only two appearing within the top 200. Notably, the token IMX declined by over 85% across 12 months, and GUN dropped approximately 89% from its March all-time high by December 15.
Industry voices highlighted years of reduced funding, eroded investor trust, and a shift toward token-first exit strategies. Limited partners pressured for outsized returns, demanding faster token events rather than allowing time for mature game development.
A substantial wave of shutdowns affected games and studios, including Battlebound/Anterris, Blade of God, Blast Royale, Champions Ascension, Derby Race, Ember Sword, Goombles, JungleXYZ, Kryptomon, Hello Monster, Loot Legends, Metalcore, and Mystery Society.
The Splinterlands Crypto Gaming Recovery Fund provided approximately $500,000 in crypto assets to support abandoned players, though no major projects joined the initiative. Additionally, Deadrop issued refunds for NFT purchases following non-delivery.
As the crypto gaming sector lost momentum, investors and developers redirected their attention toward AI and real-world asset narratives, with some studios pivoting to AI projects.
