Delphi Digital: GameFi funding in 2025 decreased by over 55% year-on-year, with Web2.5 games becoming a new growth direction

On December 30, Delphi Digital published an article stating, “2025 will be a challenging year for GameFi. The overall funding volume has decreased by over 55% year-on-year, some highly anticipated projects have underperformed upon launch, and market enthusiasm has noticeably cooled down. However, when looking at the bigger picture, the situation is more complex. We are witnessing the quiet rise of Web2.5 games. These games view blockchain as a pure infrastructure layer, often skipping token design altogether and competing based on real revenue and product experience. Studios like Fumb Games, Mythical Games, and Wemade / Wemix continue to generate substantial income while leveraging blockchain in different ways: blockchain helps them improve profit margins, increase user engagement, or introduce new monetization channels. In comparison, native Web3 games have also generated millions of dollars (6–7 figures) in revenue this year, but their player base remains relatively small and heavily bot-driven. Once incentives dry up, the fun of the game often disappears, although some teams are experimenting with new mechanisms to address this issue. Web2.5 studios are now able to fully leverage the advantages of blockchain without forcing users into speculation or making excuses for awkward user experiences. As stablecoins become more widespread, this trend will accelerate. Small transactions, global payment channels, and user engagement-based reward mechanisms will become more convenient.”