January 2025 Web3 Game Report: Sector Declines Amid Broader Market Gains

Web3 gaming market cap declined 19.3% to $22.3 billion despite broader crypto strength, with monthly transactions falling 7.2% to $549.2 million and trading volume dropping 12.4% to $234.8 million. TON Foundation’s exclusive blockchain infrastructure agreement with Telegram required migration by February 21, and LINE launched Mini Dapps through the Kaia Wave program with 32 initial applications. Investment activity included Pixion Games’ $4 million Series A led by Delphi Ventures and ZKcandy’s $4 million raise for gaming Layer 2 infrastructure.