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Game7, working with Naavik, has rolled out its 2024 State of Web3 Gaming Report, an extensive exploration of the fast-evolving blockchain gaming landscape. Through independent research, the report maps out key industry metrics, trends, and data that aim to guide professionals navigating this emerging sector. This year’s findings build on last year’s analysis and bring new insights into blockchain gaming’s development, user engagement, and ecosystem shifts.
To compile the report, Game7 reviewed data from over 2,500 blockchain games, 1,500 funding rounds, and 100 blockchain networks spanning six years. According to George Isichos, Core Contributor at Game7, “Maintaining accurate and objective data in Web3 gaming is a herculean effort, requiring deep understanding of technical, gaming, financial, and regulatory aspects. For the second year, Game7 is proud to deliver this comprehensive analysis as a public good to advance the Web3 gaming ecosystem.”
Telegram has emerged as a crucial tool for Web3 game developers, capturing 21% of new game launches in 2024. Publishers use the platform to foster unique user experiences, which could influence how Apple and Google approach Web3, as both giants continue to enforce restrictive app store policies on blockchain games.
Blockchain ecosystems are also showing distinct trends. Immutable saw a 71% growth, making it a leader with 181 announced games, 33% of which moved over from Polygon. Similarly, Arbitrum expanded by 68%, with 119 titles driven by its Orbit Framework, establishing Layer 2 and 3 networks as popular choices for gaming infrastructure.
In 2024, APAC led in new Web3 game development, with teams contributing 39% of games, followed by North American teams with 36%. The US alone accounted for 27% of total Web3 games, with significant contributions from South Korea and Singapore. Despite an overall decline in new game launches (36% fewer compared to 2023), the number of project exits dropped by 84%, indicating more sustainable projects entering the space.
Yet challenges persist, particularly around blockchain integration in games. A gap remains between announced games and those reaching a playable or integrated state: 45% of games are now playable, while only 34% are blockchain-integrated. Epic Games Store added 81 Web3 titles this year, while Steam continues to enforce restrictive policies, pushing developers to alternative distribution methods. Console gaming, too, is slowly evolving, though the response from giants like Sony and Microsoft remains uncertain.
Funding in the Web3 gaming space increased by 17% year-over-year, reflecting a shift to smaller, strategic funding rounds. Despite a 200% year-over-year increase in gaming token launches, they still trail behind the highs of 2021. Much of this reflects ongoing economic uncertainty and the absence of a standout success like Axie Infinity’s previous “Axie moment.”
The report suggests that standard metrics, such as wallet activity and on-chain data, capture only a portion of true user engagement. To provide a more accurate view, Game7 proposes tracking developer activity and infrastructure growth as indicators of ecosystem health. “Our team believes in empowering stakeholders in the Web3 gaming industry, which is what has informed the stringent standards of data integrity, verifiable trend reporting and accountability of Game7,” said Steven Chen, Core Contributor at Game7.
In this collaboration, Naavik’s Aaron Bush highlighted the value of high-quality public research, explaining that “as new Web3 games reveal the potential of this emerging category, understanding the evolving market dynamics, technologies, and best practices is key to enabling tomorrow’s leaders.” Game7’s research, Bush added, plays a crucial role in supporting growth and innovation for new teams in Web3 gaming.