Delphi Digital Sees Web2.5 Games Potential with Wemix as GameFi Funding Drops

• GameFi funding declined more than 55% YoY in 2025, hampered by poor infrastructure and fading enthusiasm.

• Web2.5 games prioritize real revenue and user experience, leveraging blockchain subtly.

• Studios like Wemade, Fumb Games, and Mythical Games generated massive income, with blockchain aiding engagement and margins (over seven figures in Web3 revenue too).

Web2.5 games surge in 2025 amid GameFi’s 55% funding drop: Delphi Digital highlights blockchain’s role in traditional gaming evolution. Discover stablecoin boosts, expert views, and market shifts for smarter crypto gaming investments.

What Are Web2.5 Games?

Web2.5 games represent a hybrid model that integrates blockchain technology as a foundational infrastructure layer into traditional gaming, often bypassing native token designs to focus on authentic revenue streams and superior player experiences. According to Delphi Digital, these games compete directly with established non-blockchain titles by enhancing user engagement, profit margins, and monetization channels. Studios such as Wemade with Wemix, Fumb Games, and Mythical Games exemplify this approach, generating substantial income while discreetly utilizing blockchain benefits.

How Do Stablecoins Drive Web2.5 Gaming Expansion?

Stablecoins are pivotal in accelerating Web2.5 gaming adoption by enabling seamless microtransactions, engagement rewards, and global payments without exposing players to cryptocurrency volatility or speculative pressures. Delphi Digital emphasizes that this infrastructure allows studios to deliver polished user experiences (UX) comparable to traditional games, eliminating awkward blockchain integrations that plague pure Web3 titles. As stablecoin usage grows, developers can focus on fun gameplay and profitability, fostering broader appeal among mainstream gamers wary of speculation.

Frequently Asked Questions

What Caused GameFi’s Funding Decline in 2025?

GameFi funding plummeted over 55% year-over-year in 2025, primarily due to infrastructure shortcomings, underwhelming launches of hyped projects, and stiff competition from traditional gaming giants, as reported by Delphi Digital. Enthusiasm waned quickly post-launch, with many titles failing to sustain player interest beyond initial incentives.

Why Do Traditional Gamers Avoid Web3 Games?

Traditional gamers often steer clear of Web3 games because they require managing wallets, navigating token economics, and confronting perceived security risks and regulatory uncertainties, according to Nexpace CEO Sunyoung Hwang. The entry barrier feels high, with crypto viewed as overly complex; clearer regulations and intuitive UX could bridge this gap.

Key Takeaways

• Web2.5 games bridge worlds: They embed blockchain for backend advantages like payments and engagement without forcing speculation, powering studios like Wemade to thrive.
• GameFi struggles persist: 55% funding drop in 2025 highlights issues like bot-dominated player bases and incentive burnout, though some Web3 titles hit seven-figure revenues.
• Regulatory clarity needed: Experts like Play Network CEO Christina Macedo stress that blending finance and fun requires user-friendly innovations to attract mainstream players.

Conclusion

In summary, the rise of Web2.5 games signals a maturing blockchain gaming landscape in 2025, countering GameFi’s sharp funding decline through pragmatic infrastructure use and stablecoin integration. Delphi Digital’s analysis, alongside insights from leaders like Sunyoung Hwang and Christina Macedo, underscores the shift toward sustainable models prioritizing experience over hype. As regulatory frameworks evolve, expect Web2.5 approaches to dominate, offering investors and players alike more reliable opportunities in crypto-enhanced gaming.

GameFi’s Challenging Year: Infrastructure and Competition Woes

The crypto research firm Delphi Digital highlighted 2025 as a tough year for GameFi, marked by a more than 55% year-over-year drop in funding. Initial visions of decentralized gaming economies faltered under the weight of technical limitations and superior alternatives from traditional gaming ecosystems. High-profile launches failed to meet expectations, leading to rapid declines in user enthusiasm and investment.

Despite these setbacks, Delphi Digital paints a nuanced long-term outlook. Web2.5 games emerge as frontrunners by treating blockchain as a utility layer rather than a core gimmick. This strategy allows developers to generate genuine revenue—often in the tens of millions—while competing on gameplay quality alone. Blockchain subtly boosts operations through enhanced data ownership, loyalty programs, and cross-platform economies.

Web3 Games: Revenue Without Retention

Pure Web3 native games managed to rake in millions in revenue during 2025, surpassing seven figures in some cases. However, Delphi Digital notes persistent issues: small, bot-heavy player bases and gameplay that loses appeal once airdrop incentives vanish. Projects like DeFi Kingdoms peaked at a $1.3 billion market cap, Wolf Game hit $118 million in daily volume, and Raid Party raised nearly $60 million before fading.

These titles often revolve around simple competitive loops in high-risk environments enabled by transparent smart contracts. Proponents argue this trustlessness supports bolder risk-taking than conventional platforms. Critics counter that it merely amplifies speculative spending, detached from lasting fun.

Shifting Market Dynamics and New Funding

As 2025 draws to a close, the Web3 gaming market adapts to scarcer, smaller funding rounds amid broader investment caution. Yet innovation persists, with South Korean studio Ndus Interactive securing $1.6 million last month for its pop extraction shooter Xociety, pushing total funding past $8 million. The game entered early access on November 29 via the Epic Games Store for PC and SuiPlay0X1 handheld, supporting major platforms like EGS and Steam.

Industry voices offer perspective on integration hurdles. Nexpace CEO Sunyoung Hwang attributes Web3-Web2 divides to player perceptions rather than developer shortcomings. Traditional gamers cite steep thresholds: security fears, regulatory ambiguity, and crypto complexity. Hwang advocates paired advancements in UX and regulations to make entry seamless.

Play Network CEO Christina Macedo echoes this, viewing core challenges as universal across gaming paradigms. Players resist token management mid-game, skewing Web3 toward finance-tolerant users. She urges designs that hide blockchain complexities, fostering organic adoption.

Toward Sustainable Blockchain Gaming

Web2.5 models sidestep these pitfalls by optionalizing speculative elements. Stablecoins streamline global micropayments and rewards, mirroring familiar in-app purchases. This evolution positions blockchain as an enhancer, not a barrier, promising wider reach. Delphi Digital’s report underscores idle crypto capital’s readiness to fuel viable projects around the clock, provided they deliver enduring value.

While Web3 experiments continue—exploring risk-tolerant loops and contract transparency—the market pivots toward hybrids. Funding like Ndus Interactive’s signals resilience, but success hinges on balancing entertainment primacy with blockchain’s backend strengths. Gamers and investors should monitor stablecoin maturation and UX breakthroughs for the next growth phase.