Ever since Web3 gaming was popularized by the likes of Axie Infinity, the fledgling sector has remained relegated to the status of indie development, a sidenote of the blockchain sector, and an afterthought for gamers.
But, if the rise of blockchain gaming in 2024 is anything to go by, 2025 could be the year that Web3 gaming finally launches into the mainstream gaming industry.
Blockchain gaming is yet to have its moment in the mainstream limelight with a true AAA blockbuster title. While Gunzilla’s “Off The Grid” made waves by being the first blockchain game on the PlayStation 5, the scene is yet to have a breakout, runaway success that other games will try to emulate.
But that’s all about to change. Major game publishers and renowned companies such as Sony, Square Enix, Ubisoft and Atari are working to evolve the industry, and as investment continues to rise, so does the possibility of a renowned studio creating a new flagship title that leverages crypto and NFT economics.
It’s also worth noting that the Epic Games store has added over 80 new Web3 titles to its storefront in 2024. Although the most popular PC gaming store, Steam, maintains its restrictions, Epic’s efforts signal a considerable change in perceptions from the mainstream gaming industry.
But, as portions of the Web3 gaming sector work to distance themselves from the—debatably—unsustainable and often boring play-to-earn (P2E) experiences, Web3’s airdrop-driven mobile gaming sector is only just getting started.
The near-dead model of P2E found new life in 2024, with Telegram’s wildly successful Web3 mobile gaming push. Notcoin (NOT) set the trend into motion and was promptly followed by Hamster Kombat (HMSTR), Base Dawgz (DAWGZ) and Catizen (CATI), which pulled in over 300 million players combined.
Players were incentivized with promises of airdrops, which were rolled out to mixed results in September, and promises of “season 2” airdrops, ecosystem developments and new P2E titles, such as Bombie, have managed to keep some players coming back for more.
In fact, Telegram launches accounted for 21% of all Web3 game launches in 2024, highlighting its growing market share.
The success of Telegram’s tap-to-earn titles has spurred some novel developments, which include PAWS. It’s a mini-app that tracks and rewards a player’s Telegram gaming achievements and participation.
It’s certainly an indication of where Telegram gaming is headed, and players may return en masse should the P2E ecosystems continue to evolve.
With the Telegram Gaming Accelerator set to bring in its first cohort of developers in January 2025, it’s safe to say that there’s plenty for mobile gamers to look forward to in 2025.
The earliest Web3 gaming offerings relied heavily on non-fungible tokens (NFTs) to serve as the main value proposition during the peak of their popularity between 2020 and 2022.
As noted, with the lack of breakout AAA Web3 games, there is yet to be another game like Axie Infinity, which almost single-handedly kicked off the Web3 gaming trend.
As the popularity of NFTs fizzled out, so did the games that used them. For better or worse, the NFT market needed to cool off at some point and begin shifting its focus to giving users utility.
Gaming is a perfect use-case for NFTs, but unfortunately, they became synonymous with scams and junk crypto projects, and died off . But they’re coming back.
Reports have found that NFT gaming has shown signs of recovery in 2024, as trading volumes across titles such as InfiniGods, Pirate Nation and others record sizeable upticks in activity.
It’s unlikely that NFTs will return as the primary Web3 element of P2E, and may serve alternative, optional purposes.