Immutable, the largest company focused on blockchain gaming, had a controversial first quarter of 2025 growth. The company has boosted its growth through an increase in daily transactions and growth of its gaming ecosystem. It too faced its own minor, momentary NFT sales volume decline. So when the company shared another thrilling payoff, we weren’t exactly shocked. By the end of 2025, it expects to combine its Immutable X and Immutable zkEVM solutions into a single “Immutable” network. This smart play unifies operations and improves the user experience across its ecosystem.
During the first quarter, Immutable released the beta version of its Perpetual Rewards program. This new initiative is designed to promote player retention. In addition, Immutable recently and successfully defended a U.S. Securities and Exchange Commission (SEC) investigation without incurring any form of enforcement action. Immutable’s fund had an explosive increase in interest over the last nine months. Nice work—it increased its assets under management (AUM) by 180% by March 2025, with total AUM of $280 million.
Immutable's Founding and Early Funding
Immutable was co-founded in December 2018 by James Ferguson, Robert Ferguson and Alex Connolly. These three people had a mutual ambition to transform the gaming industry with blockchain technology.
Before launching publicly, Immutable raised $2.4 million in a seed funding round on July 9, 2018. Cameo’s new $8 million late seed round included a number of high profile investors, notably Coinbase Ventures, Santiago R Santos, Continue Capital, and Nirvana Capital. That initial financial support allowed Immutable to get a head start on developing its proprietary technology. Equally important, it positioned the company to attract a talented team.
The huge funding round was a vote of confidence in Immutable’s understanding of the opportunity and execution in building towards that vision. Support from established investors—especially Coinbase Ventures—was critical in instilling confidence. This validation supercharged the company’s approach and attracted interest from the broader blockchain community. This early success would continue to be the groundwork for Immutable’s further success and evolution.
Performance Metrics in Q1 2025
While transaction volume saw positive growth across the board, Immutable zkEVM saw a -31.5% decline in active addresses. This huge divergence indicates that although the platform is able to service more transactions, less unique users actually are participating on a daily basis. It’s possible that increased activity from current users is fueling this new trend. Or a smaller but more dedicated user base might be centralizing its presence.
Overall NFT sales volume on Immutable X and Immutable zkEVM decreased by 1.6% QoQ. This dramatic decline is indicative of the changing crypto ecosystem and NFT marketplace. Total sales fell from $79.5 million to $78.3 million. We suspect this small decline is due to larger market forces at play. Or it might be due to unique circumstances affecting the NFT market in Q3.
Average daily transaction fees on Immutable grew by 28.8% QoQ, climbing from about 477 IMX to 614 IMX. Underlying this growth is greater demand for processing transactions on the platform. This might be capturing growing network usage or shifts in fee payment incentives.
New unique contracts deployed on Immutable zkEVM grew significantly by 83.3% QoQ. The subtotal contracts grew from approximately 1.03 million to almost 1.90 million. This growth is really a sign of the massive pipeline of new projects and new applications still being built on top of the Immutable zkEVM platform.
Perpetual Rewards Program and Ecosystem Expansion
For Q1 2025, Immutable released the beta version of their Perpetual Rewards program. Through this program, we hope to further incentivize return player activity by providing rewards for playing over time. The program uses a reward system, where players earn “gems” by completing missions of real-world educational activities. These activities range from simply getting your daily in-game tasks done to possessing specific digital collectibles or taking part in core milestone events.
The new Perpetual Rewards program hopes to create a more loyal and engaged player base. By offering these incentives on a continuing basis, Immutable helps ensure that players will want to stick around and keep playing games on their platform. As a result, players are far more likely to stick around, contributing to a more long-lived and healthy community within any game.
Immutable’s ecosystem kept building, recently passing the milestone of 500 gaming titles. This growth is a testament to the platform’s growing realization of how attractive it is to game developers. It wants to point out its success at drawing a wide array of genres to its platform. The deepening of the ecosystem gives players a bigger range of experiences to choose from. This development continues to cement Immutable’s status as the leading platform for blockchain gaming.
SEC Investigation and Unified Network Plans
In March 2025, the U.S. Securities and Exchange Commission (SEC) officially closed its investigation into Immutable. The SEC ultimately chose not to pursue enforcement action against the company. Consequently, this outcome clears the air and eliminates a possible hindrance to Immutable’s growth going forward.
With the SEC investigation now behind Immutable, the company can reinvest those resources into its core business operations. It allows it to push priority strategic initiatives for social good without fear of regulatory reprisal. Availability of this positive development is sure to raise investor confidence and bring in more investment/capital into the company.
Immutable additionally shared news of its plans to combine its two flagship blockchain solutions, Immutable X and Immutable zkEVM. The resulting merger will lead to one unified network, called just “Immutable,” by the end of 2025. This consolidation is intended to improve operational efficiencies and the user experience. More importantly, it will establish a cleaner, more connected, and consistent environment for blockchain gaming as a whole.
Today, Immutable X uses a layer 2 protocol which batches thousands of transactions together. It then posts validity proofs to Ethereum’s Layer-1. This is how Immutable X became capable of processing 9,000+ transactions per second. It offers no gas fees for minting and trading. This scalability and cost-effectiveness is imperative for helping to power the most demanding, fast-paced gaming experiences.
Immutable also offers zero-to-minimal gas fees to mint and trade NFTs on its platform. It also offers quick transaction settlements and highly scalable gaming infrastructure. These features are integral to maximizing the potential of a seamless and efficient experience for game developers and players alike. To that end, the company is combining Immutable X and Immutable zkEVM. This hugely exciting combination will help bring the best elements of both solutions together into one, supercharged solution.
Immutable’s fund has been on an incredible trajectory these last nine months. It’s done so while growing its assets under management (AUM) by 180%, to a staggering $280 million by March 2025. This continued growth is a clear indicator of growing investor confidence in Immutable’s continued vision and execution. Second, it gives the company more financial flexibility to double down on its strategic priorities and continue expanding its ecosystem.
