THE STATE OF
2024
In Collaboration with
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1
ABOUT Game7
Game7 is a Web3 gaming ecosystem created to accelerate
the adoption of blockchain-enabled game economies.
The Game7 community helps shape capital allocation
decisions, define gaming standards, and fund open-source
software.
Game7's mission is to make the future of GameFi business
models sustainable by ensuring the interests of players and
developers are aligned.
2
ABOUT NAAVIK
Naavik is a leading research, consulting, and advisory firm
dedicated to the games industry.
Naavik has worked with 250+ clients on wide-ranging
projects and is a trusted partner to both big and small
publishers, studios, platforms, and investors.
The team's Open Gaming Research Initiative, backed by a
world class creator network, also publishes some of the
best free games industry analysis around.
Visit naavik.co to learn more and get in touch.
3
INTRODUCTION
At Game7 Research, we are dedicated to advancing the Web3 gaming ecosystem, one meticulously researched
report at a time. We’ve found most research is skewed or has biases to benefit select stakeholders, leaving a
critical gap in the pursuit of equitable knowledge dissemination. Our mission is to develop research that is
intellectually honest, objective and credibly neutral.
State of Web3 Gaming 2024 offers a comprehensive view of key ecosystem metrics that have evolved over the
past twelve months, building upon and expanding the data from our 2023 report. Through rigorous primary
research methods, Game7 has captured, examined, and fingerprinted data from more than 2500 blockchain
games, 1500 funding rounds, and 100 blockchain ecosystems over the past 6 years.
CONTRIBUTORS
GEORGE STEVEN KOSTAS DEVIN ANDREAS
ISICHOS CHEN ZARKADOULAS BECKER MICHAILIDIS
4
METHODOLOGY
Measuring genuine user engagement in blockchain games is challenging due to the limitations of on-chain data.
Metrics like daily active wallets or transaction volumes can be misleading without combining on-chain and
off-chain context. Our analysis focuses on developer activity, fundraising, and ecosystem infrastructure to
provide more meaningful insights into industry growth. We encourage readers to seek additional data sources for
player engagement patterns.
Our database includes industry developments through September 30, 2024. All annual data presented for 2024
represent the first three quarters of the year unless otherwise specified. Year-over-year (YoY) comparisons use
the corresponding twelve-month period from September 30, 2023 to September 30, 2024.
The report uses first-party data on game titles, funding rounds, blockchain networks, and infrastructure projects,
supplemented by insights from Crunchbase, DefiLlama, Coinmarketcap, DappRadar, Delphi Digital, and Naavik.
While we strive for accuracy, there may be errors due to third-party data reliance and potential undercounting of
private or unannounced projects.
5
1 Executive Summary 7-8
2 Web3 Gaming Ecosystem 9-20
3 Platforms & Distribution 21-26
4 Blockchain Stack 27-33
Table Of Contents
5 Network Competition 34-43
6 Funding & Tokens 44-52
7 Regulation 53-56
8 Appendix 57-58
6
EXECUTIVE SUMMARY
Telegram emerged as a key development platform for Web3 games, capturing 21% of new Web3 game
launches in 2024, with publishers utilizing the messaging app for user acquisition. This trend could influence
traditional mobile platforms’ approaches to Web3 gaming, while mobile gaming faces challenges from
restrictive app store policies and regulatory uncertainties.
Immutable and Arbitrum ecosystems grew the most over the past 12 months. Immutable led with 181
announced titles, marking a 71% YoY growth and capturing 33% of games migrating from Polygon. Arbitrum
achieved a 68% YoY growth to 119 titles, driven by the Orbit Framework, which powered 23 new Web3 gaming
networks.
APAC teams have added 39% of new Web3 games in 2024, followed by the US with 36%. US-based teams
account for 27% of Web3 games overall, with South Korea and Singapore contributing 11% and 7%, respectively.
For another year, interest in new gaming chains outpaced the games themselves. By Q3 2024, there were 104
new blockchain network announcements supporting Web3 games, alongside 252 new game announcements.
New Web3 game announcements decreased by 36% compared to 2023, yet there was an 84% reduction in
teams exiting Web3 or ceasing development.
7
EXECUTIVE SUMMARY
Most Web3 gaming ecosystems are facing game development and blockchain integration pains. Analysis shows
that only 45% of Web3 games are in a playable state, and just 34% have integrated with blockchain
infrastructure.
Epic Games Store added 81 new Web3 titles in 2024 while Steam maintains restrictions. Console gaming is
showing initial signs of change, though Sony and Microsoft’s stance on Web3 technology remains uncertain.
Developers are primarily targeting console audiences without incorporating blockchain features.
In 2024, over 90% of launches came from indie teams. RPGs (20%), Casual (17%), Action (14%), and Strategy
(14%) game genres lead new Web3 game announcements this year.
Through Q3, funding for Web3 gaming titles and infrastructure grew by 17% YoY, with a shift toward smaller,
strategic rounds. Gaming token launches increased by 200% YoY, though still below 2021's peak levels. Tokens
for new game titles accounted for 74% of these new token launches.
8
Web3 Gaming Ecosystem
Key Developments
The Web3 gaming ecosystem demonstrated resilience and maturation in 2024, as evidenced by key market
indicators. While new Web3 game announcements decreased 36% compared to 2023, this was accompanied
by a significant 84% reduction in projects ceasing development or exiting Web3. This trend indicates a healthier
and more stable ecosystem, suggesting a market that is growing at a more sustainable pace despite turbulent
macroeconomic conditions and challenges faced by gaming companies globally.
Play-to-Airdrop (P2A) emerged as a new business model for Web3 gaming in 2024, representing a significant
evolution from the inflationary issues of play-to-earn (P2E) models. The concept has gained traction through
notable campaigns from games like Pixels, Pirate Nation, The Beacon, and Nyan Heroes. The key differentiator
is the implementation of fixed rewards, preventing uncontrolled inflation, distributed based on participation
through contests and leaderboards. While this model maintains the benefit of motivating play without
rewarding all players, it doesn't fully address underlying demand issues. Similar to P2E, these airdrop
campaigns have attracted a significant number of bots, with games in many cases experiencing substantial
active player count drops following bot bans.
10
Publishers & Studios Maintain Interest in Web3 Gaming
Web3 Game Title Announcements and Discontinuations
11
For Another Year, Interest for Gaming Chains Outpaced Game Releases
Network and Game Announcements Comparison
12
Key Developments
AAA Web3 gaming remains a niche segment, with over 90% of new games launched in 2024 falling under the
Large Indie or smaller categories according to our methodology. This trend signals a maturing and normalizing
Web3 gaming ecosystem, moving away from the perception that only AAA titles can drive mainstream
adoption. The development cycle of AA or AAA games so far appears incompatible with the rapid innovation
cycles characteristic of Web3, where new dominant design themes emerge every few months.
Given the required pace of innovation in both economic design and engineering, well-funded indie projects
seem better positioned to achieve meaningful breakthroughs in the Web3 gaming stack. This doesn't preclude
the launch of new Web3 AA or AAA titles, as demonstrated by Off the Grid which proved that high-quality
gameplay can overshadow Web3 elements. However, a surge in new AAA games with multi-year development
plans is unlikely until existing high-profile projects and the Web3 tech stack enable a new "Axie moment" for the
space, establishing a repeatable playbook that reignites excitement among gamers, developers, and investors.
To learn more about how we organize Web3 games based on their production quality, please refer to the appendix.
13
Over 90% of New Web3 Games this Year Came from Indie Teams
Distribution of New Web3 Game Announcements by Production Quality
14
Key Developments
The geographic distribution of Web3 gaming development teams remained relatively stable in 2024. APAC
continued to lead the way, contributing 39% of new Web3 games, reinforcing its position as a major hub for
blockchain gaming innovation. North America contributed 35% of new Web3 games. The US is leading the
country charts, representing 27% of all Web3 gaming teams, followed by South Korea and Singapore,
contributing 11% and 7% respectively.
In terms of game genres, the industry saw a continuation of established trends. Role-Playing Games (RPGs),
Casual games, and Action games maintained their positions as the most popular categories for new Web3 titles
in 2024. The continued dominance of these genres indicates that developers are concentrating on familiar
game types to refine Web3 integration, optimize economic models, and overcome technical challenges before
entering into more diverse or complex game genres.
15
APAC Contributed Most Web3 Gaming Projects in 2024
Distribution of New Web3 Games by Studio Region
16
APAC added 39% of new
Web3 games in 2024,
North America close
behind at 36%
Distribution of Total Active Web3
Games by Studio Region
17
US-based Teams Account for 27% of Active Web3 Games
Distribution of Total Active Web3 Games by Country
United States South Korea Singapore United
UAE
Kingdom
18
RPG, Casual, Action, Strategy Game Genres Continue to Lead in Popularity
Distribution of New Web3 Game Announcements by Primary Genre
19
Key Developments
The improved market conditions that began in Q4 '23 provided a lifeline for many Web3 gaming projects.
Increased token prices bolstered existing projects' financial stability and reignited interest in new tokens,
setting the stage for new launches over the next 18 months. However, Web3 gaming faced stiff competition for
user attention, with memecoins and airdrops capturing significant crypto community mindshare throughout the
year.
The Web3 gaming landscape was marked by significant launches and announcements from both established
publishers and emerging players. Ubisoft launched Champions Tactics and announced Captain Laserhawk,
while Eve Online developer CCP Games began playtesting Eve Frontier (formerly known as Project Awakening).
Proof of Play's Pirate Nation issued a token and ran a successful play-to-airdrop campaign. Off The Grid
launched an early version of their game on PC and consoles, accompanied by a highly successful campaign
featuring leading streamers. Sega announced a remake of Rent-A-Hero, and Gameloft partnered with the NFT
project Claynosaurz. The Illuvium project launched after much anticipation. Parallel announced Colony, a new
game powered by AI agents. Krafton entered the Web3 space with Overdare, a metaverse project.
20
Platforms & Distribution
Key Developments
Distribution patterns for new Web3 games in 2024 largely mirrored 2023 trends, with one notable exception:
Telegram emerged as a significant platform choice. Mobile gaming saw limited growth despite NFT policy
updates from Apple and Google, primarily concentrated in Telegram-based games.
Telegram's appeal lies in its large user base and simplified in-app experience that bypasses traditional app
store restrictions. The platform has established itself as a significant distribution channel in 2024, with 21% of
new Web3 games choosing to launch on it.
Despite these opportunities, Telegram's infrastructure as a Web3 gaming platform faces key challenges,
including limited game discovery mechanisms, questions about user metrics' authenticity, and a lack of native
Web3 development tools.
We anticipate most Web3 game publishers will develop Telegram strategies, potentially focusing on
complementary experiences for user acquisition rather than full-featured titles. We also expect Telegram’s
growth to drive changes across traditional mobile distribution channels that have been hesitant to embrace
Web3 gaming, particularly as Telegram demonstrates viable models for blockchain game integration within
messaging platforms.
22
Telegram's Zero-to-21% Surge Reshaped Web3 Gaming Platforms in 2024
Distribution of Web3 Games Announcements by Development Platform
23
Native Mobile & Telegram
Games Make More Than
40% of New Launches
Distribution of Web3 Game
Announcements by Development
Platform in 2024
24
Key Developments
The Epic Games Store (EGS) has expanded its Web3 gaming portfolio, adding 85 new titles over the past 12
months. While EGS doesn't offer specialized Web3 features and tooling, its supportive stance on content
policies has established it as a key distribution partner for many projects.
Beyond Telegram, the broader mobile landscape is evolving with Epic Games Store's global Android launch and
EU iOS presence as of August 2024. While Epic's mobile store has not yet opened to third-party Web3 games,
their consistently positive stance toward blockchain gaming on PC makes this platform particularly worth
watching for future Web3 distribution opportunities.
Steam maintains its restrictions on Web3 features, though developers have adapted by launching modified
versions of their games on the platform. Despite community resistance to Web3-associated titles, Steam's
market reach and wishlist campaigns continue to provide strategic value for discovery and marketing.
The console sector shows promising developments, particularly with Gunzilla Games' Off the Grid successful
early launch. As the first Web3 game to launch a playtest on console platforms, it represents a significant
milestone for the industry. While Microsoft and Sony have yet to fully embrace Web3 gaming, this approach of
separating core gameplay from blockchain features could provide a blueprint for future console releases of
Web3 games, influence platform policies, and allow Web3 teams tap into console users to expand their
communities.
25
EGS Added 81 New Web3 titles in 2024 while Steam Maintains Restrictions
Quarterly Web3 Game Listings on Epic Games Store
# of total Listings
23
92
4
0
6
0
26
Blockchain Stack
Key Developments
In 2024, 105 new blockchain networks with support for gaming applications were announced—a 20% increase
YoY. 67 of these new networks (64%) were gaming-focused, with the rest being general purpose, continuing
the trend first seen in 2022 with gaming blockchain attracting more attention from developers.
The shift towards Layer 2 (L2) and Layer 3 (L3) solutions for gaming blockchains gained further momentum in
2024. L3 networks accounted for 43% of new gaming-related networks, while L2s followed closely at 34%.
Though L3s only became a viable solution in 2023, they have quickly captured game developers' interest,
largely due to their customizable blockchain environments tailored for gaming needs. While 66% of active
blockchain games still operate on Layer 1 (L1) networks, 57% of games launched in 2024 chose L2 or L3
solutions.
The Ethereum Virtual Machine (EVM) remains the dominant smart contract environment for gaming
blockchains. Despite the rapid growth of the Solana ecosystem and the emerging popularity of MoveVM-based
networks like Sui, most game developers are still reluctant to leave the EVM ecosystem. This hesitation is
primarily due to the lack of mature development tools and the high switching costs associated with moving to a
new development environment. As a result, 81% of the new gaming blockchains launched over the past 12
months continue to rely on the EVM.
28
In 2024, 104 New Blockchains that Target Gaming were Announced
Announcements of Blockchain Networks with Support for Web3 Games
29
64% of New Blockchains that Target Gaming were Gaming-Specific
Announcements of Blockchain Networks with Support for Web3 Games by Vertical
# of Network Announcements
30
The Shift Towards L2s & L3s for Gaming Blockchains Continued in 2024
Distribution of Gaming Blockchain Network Announcements by Network Layer
31
57% of Web3 Games Announced This Year Chose an L2 or L3 Network
Distribution of Active Web3 Games per Network Layer
32
The EVM Remains the Dominant Smart Contract Environment for Gaming
Distribution of Active Web3 Games & Announced Networks per Virtual Machine
33
Network Competition
Immutable, Arbitrum & Ronin grew the most over the past 12 months
Total Announced Games per Ecosystem
Ecosystems consist of networks operated by the same team as well as networks settling on these.
35
In the Past 12 Months, Arbitrum Orbit Powered 23 New Gaming Chains
Announced Gaming Blockchains by Network Framework in the Past 12 Months
36
Most Gaming Ecosystems are Facing Development and Integration Pains (1/2)
Proportion of Web3 Games in Proportion of Games with
Playable State Live Web3 Integration
Playable: Game is accessible and functional for users to play at any state (Alpha/Beta/Release).
Integrated: Game has integrated Web3 features in the game (e.g wallet, inventory, marketplace, assets) 43
Most Gaming Ecosystems are Facing Development and Integration Pains (2/2)
Number of Announced, Playable, and Web3 Integrated Games per Ecosystem
24
38
Through Q3, We Saw an All-Time High of 105 Web3 Games Migrate Chains
Web3 Game Migrations Between Blockchain Networks
39
Immutable, Arbitrum, and Avalanche Welcomed Most Migrating Games
Preferred Destination Ecosystems for Migrated Web3 Games in the Past 12 Months
40
Polygon Had Most Departures, Primarily to Immutable and Arbitrum
Ecosystems with most Departures in Destination Ecosystems for Games
the Past 12 Months Migrating from Polygon
48% of Games Left for a Recently Announced Chain, 61% Joined a L2/L3
Distribution of Migrating Games per Distribution of Migrating Games per
Destination Network Age Destination Network Layer
69% of Games Migrated to Gaming Chains, Only 11% Picked Non-EVM
Distribution of Migrating Games per Distribution of Migrating Games per
Destination Network Vertical Destination Network Virtual Machine
43
Funding & Tokens
Funding for Web3 Gaming Projects Stabilizes at 2023 Levels
Funding for Web3 Gaming Projects
333
$4,387,371,888
$29,300,000
$14,400,000
$61,260,000
$26,000,000
2 6 14
45
Investors Continue to Prioritize Game Titles over Infrastructure Investments
Funding Distribution Across Gaming Infrastructure & Content
46
Content Investments went to Action, RPG, and Casual titles
Distribution of Content Investments by Primary Genre
47
Investors Targeted Gaming Chains and Engagement Platforms
Distribution of Gaming Infrastructure Investments by Vertical
Gaming Blockchains Community Engagement
NFTs & Metaverse
Development Platforms
Tooling Tooling
48
Web3 Gaming Investors Stay Conservative, Awaiting the Next Axie Moment (1/2)
Average Funding Round Sizes for Content and Infrastructure Investments
49
Web3 Gaming Investors Stay Conservative, Awaiting the Next Axie Moment (2/2)
Median Funding Round Sizes for Content and Infrastructure Investments
50
Gaming Token Launches Increased by 200% from 2023
Quarterly Token Launches for Web3 Gaming Projects
51
Through Q3, Game Titles Accounted for 74% of Token Launches in 2024
Distribution of Web3 Gaming Token Launches by Vertical
52
Regulation
The Regulatory Mosaic: Web3 Gaming's Global Landscape (1/3)
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) remain the
primary regulatory bodies overseeing digital assets in the US. Web3 gaming projects must navigate compliance through
established frameworks, particularly the investment contract analysis under the Howey test.
The SEC's enforcement-first approach has created a challenging environment for projects dealing with digital assets,
including gaming NFTs and tokens. This was highlighted by the SEC's recent actions, including the Wells Notice issued
to Immutable regarding its IMX token. The SEC's focus on historical marketing materials, including a 2021 blog post,
demonstrates their continued scrutiny of token marketing and sales practices, regardless of current utility.
In the wake of recent electoral changes, there are indications of potential shifts in the regulatory approach toward Web3
gaming projects in the US. While specific outcomes remain uncertain, the industry is beginning to establish channels for
regulatory dialogue.
While projects are delaying token launches due to regulatory concerns, others are working within existing frameworks to
integrate blockchain mechanics. The regulatory framework acknowledges various use cases for digital assets in gaming
contexts beyond investment purposes. Many projects have integrated digital assets as gameplay components with
secondary market functionality, similar to traditional gaming models.
54
The Regulatory Mosaic: Web3 Gaming's Global Landscape (2/3)
South Korea maintains a structured regulatory framework that balances Web3 gaming innovation with market stability.
The country's approach has been informed by significant market events, including the Terra/LUNA collapse and FTX
situation, as well as ongoing dialogue with industry leaders like WeMade. In June 2024, the government issued NFT
guidelines that established clear parameters for digital asset classification, particularly addressing gaming assets that
share characteristics with financial instruments. The implementation of the Virtual Asset User Protection Act (VAUPA) in
July further strengthened market safeguards while maintaining distinct considerations for gaming applications.
Japan continues to develop an inclusive approach to Web3 innovation, supporting both development initiatives and
regulatory frameworks. The nation has introduced progressive policy updates and proposals regarding Web3 and digital
asset oversight, including comprehensive annual industry assessments through white papers. Regional cooperation
remains robust, with collaborative initiatives like the Oasys project demonstrating strong international partnerships. The
Financial Services Agency (FSA) is currently evaluating potential updates to digital asset classifications, which may
create opportunities for enhanced market participation and investment frameworks.
China maintains separate frameworks for cryptocurrencies and digital collectibles (NFTs), with the latter operating
under specific guidelines. The nation's gaming oversight framework, which includes user protection measures, may
extend to NFT-enabled gaming experiences. However, cryptocurrencies remain largely banned for trading and
payments.
55
The Regulatory Mosaic: Web3 Gaming's Global Landscape (3/3)
India represents significant potential as an emerging gaming market, though its Web3 regulatory environment continues
to evolve without defined parameters. The country has imposed taxes on crypto transactions but lacks a
comprehensive regulatory framework for digital assets in gaming.
The Philippines' Securities and Exchange Commission is developing structured oversight mechanisms for
cryptocurrency assets, anticipated in late 2024, as Play-to-Earn (P2E) activities demonstrate sustained development.
The country has been relatively open to blockchain gaming, with projects like Axie Infinity gaining significant traction.
The European Union maintains its regulatory framework through the Markets in Crypto-Assets Regulation (MiCA),
established in 2023. The legislation provides guidance for digital assets that function as exchange instruments or
financial tools, requiring Web3 gaming developers to address transparency and disclosure protocols for in-game tokens
with economic value. Digital collectibles (NFTs) that incorporate financial features such as fractionalization or utility
access operate within specific regulatory parameters. Individual digital collectibles designed primarily as unique creative
works maintain distinct regulatory considerations under the current framework.
Russian sanctions have paradoxically accelerated crypto adoption, with July's legalization of crypto for global payments
and August's mining legalization. This could indirectly benefit Web3 gaming through increased cryptocurrency adoption
in a major gaming market. The strategic use of crypto to hedge against payment system restrictions could influence
other BRICS nations, potentially expanding alternative payment and earning systems for games beyond U.S. markets
56
Appendix
Game Production Quality Framework
Our game production quality framework provides a useful spectrum for categorizing
video game projects based on their scale, resources, and development approach.
Primitive: Games at the proof-of-concept stage with minimal design plans and a loosely
organized development team.
Small Indie: Games developed by individuals or small teams, typically self-funded or
with minimal external support.
Large Indie: Games that have secured financial backing (up to $10M) to expand their
development scope and team size.
AA: Games with substantial financial investment ($10-25M) and large development
teams, offering production values that approach but don’t quite reach AAA standards.
AAA: High-budget games with a minimum of $25M in funding, backed by major
publishers and developed by large, experienced teams led by industry veterans.
58
