Blockchain gaming industry awaits a fresh perspective

How does the Vietnam Blockchain Association (VBA) assess the development potential of the blockchain gaming industry for 2025?

Tran Huyen Dinh, chairman of the Fintech Application Committee under the Vietnam Blockchain Association

Vietnam’s blockchain gaming industry has made remarkable progress, even reaching a point where it was considered one of the world leaders during the boom periods of 2021-2022 with notable games like Axie Infinity and Thetan Arena.

However, according to data from the AI-powered cryptocurrency asset analytics platform Kaito AI, the interest from users in the cryptocurrency market for gaming in 2024 represents less than 3 per cent, with users focusing more on emerging trends such as AI (70 per cent), memes (5 per cent), and DeFi (5 per cent).

According to Chainplay’s report, a blockchain gaming data platform, 93 per cent of GameFi projects currently have no users or have shut down, with 88 per cent of projects witnessing token prices plummeting by more than 90 per cent from their all-time high in 2022. This highlights the harsh and challenging nature of the blockchain gaming market, not only in Vietnam but globally.

Nevertheless, many experts still believe that GameFi is far from over and is undergoing a transformation to become more sustainable.

Vietnam’s market still holds a significant advantage in the gaming industry in general and blockchain gaming in particular, thanks to its large development team, competitive production costs, and flexibility in adopting new technologies.

However, to build a solid position and attract investors and users, blockchain game projects need to evolve. They must focus on improving product quality and developing a sustainable ecosystem rather than relying on low-quality games tied to play-to-earn models, as seen in earlier stages.

What is the current investment appetite and trend for blockchain games?

According to Chainplay’s report, the total investment in blockchain gaming in 2024 is estimated at $860 million, a 13 per cent decrease from 2023 and a significant 84.6 per cent drop from 2022.

However, the number of invested projects has increased sharply, from 153 projects in 2023 to 221 projects in 2024, marking a 44 per cent rise. This indicates that although the GameFi market is no longer receiving the massive influx of capital it once did, investors still have a keen interest in the sector, but with a more selective strategy, prioritising projects with real value and long-term potential.

Statistics from Crypto Fundraising also indicate that investors are increasingly interested in blockchain gaming infrastructure projects, aiming to enhance user experience and improve game quality. Investments in this area account for nearly 40 per cent of all fundraising deals, reflecting a trend towards building a sustainable platform for the blockchain game ecosystem rather than focusing solely on individual games.

In Vietnam, many international digital asset investment funds have turned to the VBA for advice on domestic game studios. However, investment criteria have become stricter, particularly with the requirement that studios must have a solid product in the traditional market before expanding.

After the boom period from 2020-2022, capital inflows into blockchain gaming are now focusing on projects with solid foundations, tackling three main challenges: ensuring game quality and user experience on par with traditional games, building a sustainable ecosystem to maintain and expand the community, and designing a balanced token economy, including game tokens and non-fungible tokens to ensure stability and long-term growth.

This shift helps GameFi develop more sustainably and raises higher standards for product quality, forcing game studios to innovate and adapt to draw in future investment.

What support from the VBA can help Vietnamese blockchain game studios scale up and compete on the international market?

While Vietnam was once a leader in the blockchain gaming field, there are currently not many blockchain game studios operating officially in Vietnam. Most companies opt to establish businesses abroad to facilitate fundraising and operations, while the workforce primarily remains based in Vietnam.

The VBA welcomes and supports both domestic and international companies and projects in building and developing Vietnamese games. Some exemplary companies have made strong progress in this field, including Gosu, Topebox, and others.

What are the VBA’s specific goals for the blockchain gaming sector in 2025?

In October 2024, the government announced the national strategy on the application and development of blockchain technology up to 2025, with a vision to 2030. This decision also assigned the VBA the task of gathering blockchain technology companies and encouraging information sharing to enhance competitiveness against foreign companies.

In 2025, the VBA will intensify efforts to connect with international companies and enterprises, creating opportunities for blockchain game startups and studios in Vietnam to collaborate with global Web3 ecosystems.

Furthermore, it will continue to encourage legal frameworks in Vietnam to ensure that blockchain enterprises, especially in blockchain gaming, operate in a transparent, stable environment aligned with global development trends.

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