L2 gaming activity spikes in February, but wallets decline — Report

Gaming activity on layer-2 blockchains has witnessed explosive growth, with some chains reporting increases exceeding 20,000% in February 2025. According to a recent report by DappRadar, despite this surge in activity, the number of daily unique active wallets (dUAWs) has overall declined by 16% compared to January, highlighting a complex and shifting landscape in the blockchain gaming sector.

Leading the charge in this surge is Abstract, an Ethereum layer-2 blockchain developed by Igloo, which is also known for the Pudgy Penguins NFT collection. Abstract saw a staggering growth of over 20,000% in daily active unique wallets (dAUWs), driven largely by the success of its game, Treasure Ship, which boasts around 72,000 UAWs. Following Abstract is Soneium, Sony’s Ethereum L2 blockchain, which recorded a 3,200% increase, fueled by the popularity of the game Evermoon, with approximately 32,000 UAWs. Linea, another layer-2 solution, also experienced a commendable growth of over 1,000%.

Despite the remarkable rise in gaming activity on these platforms, the overall dUAWs in the cryptocurrency space settled around 5.8 million, a decrease that signals a retreat from the highs reached earlier. The report indicates that the allure of blockchain gaming, historically a dominant player in the crypto ecosystem, has waned. Economic uncertainties have shifted investor focus back to decentralized finance (DeFi), now regarded as the most dominant sector, causing many traders to exit their positions in gaming projects.

The most active blockchains in gaming, meanwhile, include opBNB—layer 2 atop the BNB Smart Chain—and independent layer-1 blockchain Aptos, bolstered by its focus on decentralized applications. Also noteworthy is Nebula, a Skale chain, which has established a significant presence in the gaming sector.

Investment in blockchain gaming surged to $55 million in February, marking a 243% increase from January, with an impressive 92% of allocated funds directed towards infrastructure development. This trend reflects a growing commitment to solidifying the technical backbone of blockchain gaming projects, even as some speculate a more cautious approach may emerge.

Year-over-year comparisons reveal that blockchain gaming activity has indeed flourished, with daily unique active wallets increasing by 386% to 7 million. However, this growth now raises questions regarding the sustainability of a potential blockchain gaming bull run within the current 2025 landscape. The excitement surrounding upcoming titles, such as “Off The Grid,” which plans to utilize an Avalanche subnet and reportedly generated over 100 million transactions in its first month, underscores the potential for innovation in the space.

Nevertheless, industry insiders, including Gunzilla Games Web3 director Theodore Agranat, caution against overoptimism. Agranat pointed out that the existing capital within the gaming ecosystem appears to be merely recycled between projects rather than drawing in new investments. This dynamic suggests that while some blockchain games may see short-term success, the lack of new money could limit long-term growth, as investors bounce from one project to another in hopes of extracting value.

In summary, while the landscape for blockchain gaming appears vibrant with recent spikes in activity and investments, underlying economic conditions and shifting investor sentiment may pose significant challenges moving forward. The future of this sector will likely depend on its ability to adapt and evolve in a rapidly changing financial environment.