L2 Gaming Sees Explosive Expansion Amidst Wallet Drop
Gaming activity on Layer-2 blockchains surged in February 2025, despite the decline in the number of unique active wallets (dUAWs) by a considerable margin, according to a DappRadar report. The expansion was led by emerging blockchain projects and increased utilization of decentralized gaming platforms, a reflection of the rising interest in Web3 gaming systems.
Abstract Drives L2 Gaming Growth
Abstract, an Ethereum L2 blockchain constructed by Igloo, recorded the highest growth rate in daily active unique wallets (dAUWs) of more than 20,000%. Sony’s Ethereum L2 Soneium placed second with 3,200% growth rate, followed by Linea placing third with over 1,000% growth rate. This is indicative of increasing popularity among L2 networks in supporting gaming applications that run high speeds on low costs.
- Top Games Spurring the Boom
- There were two games primarily responsible for spurring this boom:
- Treasure Ship (Abstract): Has around 72,000 unique active wallets.
- Evermoon (Soneium): Hit about 32,000 unique active wallets.
The games both brought innovative play-to-earn mechanics along with independent NFT integrations, generating intense user interest. Builders keep on adding new ways for enhancing gameplay experience, which in turn keeps on boosting adoption.
Wallets Fall As Traders Turn to DeFi
While there was a boom in gaming on some L2s, overall dUAWs fell by 16% month-on-month to around 5.8 million. The report blames shifting market conditions, which saw investors rushing towards decentralized finance (DeFi) under the cover of economic uncertainty.
Historically, blockchain gaming has dominated market share. However, the report shows that investor interest has shifted towards DeFi, which is the current dominant sector, as traders react to volatile market conditions. Analysts credit increasing interest in yield farming, staking, and decentralized exchanges as prime drivers of the trend.
Market Outlook
While gaming activity remains a powerful driver in Layer-2 networks, the overall decline in wallets indicates changing investor sentiment. Blockchain gaming developers and projects will need to adapt by offering more attractive reward schemes, a superior experience, and cross-chain support.
Whether gaming regains its throne or DeFi continues to dominate the charts will depend on future market stability, technological advancements, and regulatory policies. The coming months will decide the fate of Web3 gaming in the long term.
