Arguably Axie is pretty niche. And so are the other blockchain games out there.
The thing they have in common is that they're all equally terrible. It's not because everyone tried to make a terrible game but because the blockchain is terribly limiting and the audience of people its for are not even interested in games to begin with.
Part of the reason they're all kind-of samey is that you can only put so much metadata into the hash of a receipt on the chain. In Axie and similar games and NFTs this metadata is used to encode things about the game object and is supposed to make them unique, etc. You end up with character designs that look like poorly implemented procedural oat-meal: one character is not that much different from the theoretically-infinite others. So it's a pretty limited canvas to play with.
The other reason is that the people who care about these features that blockchain-games enable don't play games. These features are designed for people who like to gamble: expensive digital assets that they expect will accrue in value. So they play the game by hiring people for peanuts to play the game for them, generating more game characters, in the hope that some of them will be "rare" and worth something that they can sell.
This gets back to my original point: no gamers are complaining about a lack of a marketplace where they can buy and sell game assets. There's no pain point there for a gamer. They expect: give money, get game, play game. They get that and they're happy. When there's no pain point, there's no business.
So maybe someone will use a hashed linked list in their game engine for some purpose or another, who knows.
But I don't see any gamedevs chomping at the bit to make blockchain games. The few that are, like potentially Square-Enix, are probably only in the space because some execs are holding crypto and need a way to get more people buying into crypto.
But most gamers? They've rejected micro-transactions already. Games that still have an audience that have micro-transactions relegate them to a side-store where they only sell cosmetic in-game items. Most people can tolerate that. Gatcha games and loot box games are still pretty controversial. And plenty of gamers are hugely put off by any sort of pay-to-win.
I have no doubt some studios will try stuff on the blockchain but I'm certain that once their real-world dollars disappear into a black hole those execs will get replaced and the studios that survive will move on.