In 2025, GameFi financing decreased by over 55% year-on-year, and the Web2.5 model has become an industry consensus

By 2025, GameFi financing has dwindled to approximately $232 million, a decline of over 55%; failure rates reach as high as 80%, with funds and players shifting towards the Web2.5 model that emphasizes gameplay.
(Background recap: Web3 game “Seraph” token plummeted 60%! Officially announced a buyback $SERAPH )
(Additional background: Apple approves Bitcoin! iOS game Sarutobi launches on the App Store: players can use Lightning Network to buy items and earn Sats)

In 2025, the blockchain gaming industry experienced a freezing period. According to Delphi Digital data, this year’s GameFi projects raised only about $232 million to $427 million, compared to $1 billion in 2024 and $5.3 billion in 2022, a drop of over 55%.

After the capital retreat, the “play-to-earn” model relying solely on token incentives revealed its fragile nature: studies show that the failure rate of native Web3 games ranges from 80% to 93%, with a large number of bot accounts further harming user retention.

2025 was a rough year for GameFi.
Funding is down over 55% YoY. The most anticipated launches underdelivered and enthusiasm is muted.
But the overall picture is more nuanced.
We are seeing the quiet rise of Web2.5 games. These are games that treat blockchain as pure… pic.twitter.com/99655FSG3E
— Delphi Digital (@Delphi_Digital) December 29, 2025

The contrast between freezing funding and Web2.5

In stark contrast to the funding freeze, Web2.5 games show that players are more willing to pay for fun content rather than purely chasing token prices.

Web2.5 refers to using blockchain as backend infrastructure while maintaining traditional game front-end experiences. Studios like Fumb Games, Mythical Games, and Wemade (Wemix) utilize blockchain for small payments and cross-border settlements without forcing players to interact with wallets or exchanges. Some projects (e.g., Off The Grid by Gunzilla) even choose to launch on Steam and hide blockchain labels to lower entry barriers.

Industry Trend: From Token Sales to Experience Prioritization

With the proliferation of stablecoins, the cost of small transactions and participation rewards has decreased, allowing developers to refocus on gameplay. Straits Research estimates that the Web3 gaming market will expand at an 18.1% CAGR until 2034, but the key is that “blockchain is in the background.” Industry observers point out,

“The only way to save crypto gaming is to stop making games just for crypto players.”

Recent surveys also show that 65.8% of development teams have prioritized “quality first.”

Overall, the funding freeze in 2025 is not the end but a process of elimination. Contemporary token prices no longer dominate discussions; product quality and replayability will determine the flow of next-round funding and users, giving Web2.5 an early advantage.