Yigit Taha OZTURK 
The blockchain gaming industry has turned into a “game of musical chairs,” with no fresh capital flowing in—just the same money cycling through different gaming projects, according to Gunzilla Games Web3 director Theodore Agranat.
Existing Capital is Being Recycled
Agranat pointed out that the funds in blockchain gaming are simply being redistributed rather than attracting new investments. He described it as a “game of musical chairs,” where projects compete for the same pool of capital.
According to DappRadar, blockchain gaming investments fell sharply, from $222 million in December 2024 to just $16 million in January 2025, marking a 92% decline.
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Additionally, the number of unique active wallets (UAW) in blockchain gaming dropped from 10 million in mid-2024 to 7.5 million today, with 70% of Q1 2024 growth driven primarily by airdrops and farming campaigns.
Airdrop Farming and Sustainability Concerns
Agranat criticized the industry’s reliance on airdrop farming, where users create multiple wallets to claim rewards without genuine engagement.
“They will just go from project to project and extract whatever value they can. Once there’s no more value, they move on,” he stated.
Future of Blockchain Gaming
Agranat emphasized that blockchain games need to focus on gameplay experience to attract real players rather than speculative users.
This sentiment was echoed by Kori Leon, co-founder of Pixelverse, who previously noted that many Web3 gaming projects fail despite strong funding.
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