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2024 was the year Web3 gaming faced reality; at the start of the year, the industry was at a crossroads.

  • Blockchain tech promised to revolutionize gaming. It would enable true asset ownership, decentralized economies, and play-to-earn models.
  • On the other hand, skepticism loomed large—was Web3 gaming innovating, or was it merely a speculative bubble waiting to burst?

Every industry player entered the year with bold, ambitious goals. They hoped blockchain would transform how players engage with digital assets. But as the year progressed, it became clear that not all Web3 gaming models were built to last.

For example, the overhyped Play-to-Earn (P2E) bubble finally collapsed. Player engagement dropped. And the industry was forced to rethink its game design and monetization approach.

During this time, many brands faced FUDs from all sides. One thing became clear and agreed upon in Web3 gaming:

Games must be fun and exciting first. With earning and financial incentives, and a blockchain tech stack, all supporting, not the main draw.

However, reaching this somewhat unanimous conclusion took some time, and 2024 taught us a lot in those moments. In this article, we will explore some key arguments. If you love gaming or are building a gaming brand, this one is for you.

The New Shift

A key takeaway from 2024 was the industry’s shift. It went from an experimental niche to a structured, maturing sector. Developers abandoned the token model. They now focus on building real games to compete with traditional titles.

  • Indie developers led the way, making up over 90% of new Web3 game releases. However, in 2024, AAA games finally joined the scene with their first big wave of blockchain launches. This signaled serious investment in Web3 gaming as a viable industry.
  • In 2024, 105 Web3 games switched blockchains. They sought better scalability, lower fees, and more stable infrastructure. Immutable X and ZK-EVM emerged as preferred networks, reinforcing the idea that developers were now prioritizing game performance over mere speculation
  • Web3 game development became more accessible thanks to middleware solutions like Sequence, which helped abstract blockchain complexities. This let studios focus on gameplay, not blockchain. It removed a major barrier to mainstream adoption.

These, and their implications for the space, suggest that blockchain games aren’t vanishing. They’re evolving into something more sustainable. More brands are now giving more thought to their products and users’ feelings about them.

The events of 2023 give a big edge to the industry. Brands that thrived this year benefit the most. But maturation sometimes happens when you leave things behind and move on to other things.

This is the case here with the Play To Earn.

From Play-to-Earn to Play-and-Engage

The biggest change in 2024 was the industry’s shift away from Play-to-Earn (P2E) as the top model. While P2E once promised to disrupt the gaming economy by allowing players to earn real-world money, the reality was far less glamorous.

Games like Axie Infinity, once very popular, lost players as their flawed economies failed. These games were once fun. Now, they are just money-making schemes. When their economies crashed, users lost interest.

The FUD levels were high. But this led to the Rise of Play-and-Earn and Engagement-Based Models that other games started to utilize.

This led to a more balanced approach. Games now prioritized immersive gameplay. Earning became a secondary bonus, not the main draw. 

This shift was crucial in retaining players beyond short-term speculation.

Tap-to-Earn Models also Gained Popularity

Games like Hamster Kombat. With over 300 million users, it showed that casual, simple models could bring Web3 gaming to a broader audience. They did this without requiring deep crypto knowledge.

Other games like Avarik Saga and Gombe Games also show how exciting casual games are to gamers who love to play. The bottom line is that gamers want great games—not financial speculation. 

Web3 gaming must deliver exciting gameplay, not just financial rewards, to thrive. When brands failed to do this, the reality of the industry was rather harsh for many games.

The Harsh Reality of Market Contraction

Despite these advancements, 2024 was a tough year for Web3 gaming from a market perspective. The hype surrounding blockchain gaming did not translate into sustainable player growth.

The industry still has a long way to go before mainstream adoption and game devs are started to know that. In 2024, instead of flooding the market with half-baked Web3 games, there was a shift. The focus was on building infrastructure for long-term sustainability.

  • Partnerships like Google Cloud and Solana’s GameShift focused on scalability, security, and simplifying blockchain integration for developers. These initiatives ensured that blockchain gaming could seamlessly integrate into mainstream development.
  • Immutable’s partnership with MARBLEX helped bring major Web2 game franchises into Web3, proving that blockchain gaming does not need to reinvent the wheel—it just needs to enhance existing models.
  • Mobile gaming makes up 70% of the global gaming market. So, Web3 developers began prioritizing mobile-first experiences. Telegram-based Web3 games became a top distribution method. They showed the need to integrate Web3 into platforms players already use.

This shift to infrastructure over immediate monetization suggests that Web3 gaming is in it for the long haul. But there is still a long way to go and 2025 could be that year where we can see some real growth within the industry.

Challenges That Still Need Solving in 2025

2024 may not have been the year Web3 gaming went mainstream, but it was the year it grew up. The industry learned hard lessons about sustainability, player engagement, and technology adoption. As well as key issues that still need to be solved:

  • Gameplay Comes First: Web3 games need to match traditional games in quality, depth, and engagement. No one wants to play a game that exists purely for financial speculation.
  • User Experience Must Be Frictionless: Players must not see the complexities of wallets, gas fees, and blockchain. A Web3 game should feel as seamless as a traditional game.
  • Regulatory Uncertainty Still Looms: Governments are still deciding how to regulate blockchain gaming. This creates uncertainty for developers and investors.

If Web3 gaming continues on this path, 2025 could be the year it finally breaks into the mainstream. But the question remains: Will gaming brands continue on this growth path? Only time will tell.