The Web3 gaming sector is facing challenges in terms of player engagement sustainability, funding models, and competition from AI-driven dApps. To address these challenges, industry leaders suggest shifting the focus from blockchain technology and tokenomics to the game itself. The DappRadar's rankings show that several blockchain games, including Befriend AI by Xterio, OasChoice, LOL, and MEET48, have been popular in the past 30 days. Onboarding obstacles and poor user experience remain the top concerns in blockchain gaming, as indicated by a 2024 Blockchain Game Alliance report. Experts emphasize the importance of making blockchain technology inconspicuous in gaming to attract traditional gamers. User-friendly interfaces and simplified wallet creations can help newcomers transition to blockchain-powered games more smoothly. The growing use of AI-driven dApps poses a challenge to blockchain gaming, but AI can also be leveraged to design better games and counter onboarding obstacles. The integration of AI with other emerging technologies like augmented and virtual reality, decentralized identity protocols, and zero-knowledge proofs can create more immersive and personalized gaming experiences. The funding landscape for blockchain games has experienced significant fluctuations, with venture capital investments playing a key role in driving growth. However, recent years have seen a decline in investments, necessitating a more strategic approach to development and fundraising. Alternative funding sources, such as strategic partnerships, community funding, and grants, offer options for developers. Adapting to changing funding opportunities and prioritizing an engaging player experience will enable blockchain gaming developers to continue innovating successfully.



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