The crypto gaming industry experienced a significant downturn in 2025, leading to the closure of several major studios. Funding shortages and challenging market conditions forced companies like Battlebound, known for its Evaverse game, to cease operations. This trend impacted numerous gaming ecosystems as prominent titles were shut down. In their closing statement, Battlebound acknowledged the difficult market dynamics: ‘Despite recent traction, we’ve been building for four years with a lean, scrappy team, extending our runway as far as possible while trying to secure our next funding round… Ultimately, we’re in the same position as many studios before us, closing our doors due to remarkably challenging market dynamics.’ The decline is further evident in Web3 gaming investment, which plunged by 71% in Q1 2025. This decrease in value was fueled by regulatory uncertainty and a shift towards AI and real-world asset markets.