The market value of Web3 gaming tokens is currently at $8.83 billion, down 69% year-over-year and 34% in the past month, against the backdrop of a partnership news-filled crypto winter that has failed to boost volumes. At the end of November, the GameFi sector experienced a temporary bullish spell that saw its market capitalization rise […]The market value of Web3 gaming tokens is currently at $8.83 billion, down 69% year-over-year and 34% in the past month, against the backdrop of a partnership news-filled crypto winter that has failed to boost volumes. At the end of November, the GameFi sector experienced a temporary bullish spell that saw its market capitalization rise […]

Web3 gaming tokens face steeper declines amid crypto-wide market downturn

2025/12/02 19:57

The market value of Web3 gaming tokens is currently at $8.83 billion, down 69% year-over-year and 34% in the past month, against the backdrop of a partnership news-filled crypto winter that has failed to boost volumes.

At the end of November, the GameFi sector experienced a temporary bullish spell that saw its market capitalization rise by 7% in 2 weeks, approaching $10 billion, while trading volume surged 103% to reach $6.1 billion. 

The rally was rather short-lived, capped by a correction on December 1 that pushed the industry’s market value below $9 billion for the first time in over a year, according to CoinMarketCap charts.

The decline comes amid a crypto winter that has failed to translate partnership announcements and platform developments into meaningful trading volumes. Web3 gaming is one of the most hyped segments of the blockchain industry that has been struggling to maintain relevance since its inception.

Few tokens record over 30% profits, losses are heavier

Only a few tokens survived the piercing breeze of the winter market in December, including the Game Company (GMRT) with a 142% increase, followed by Echelon Prime (PRIME) at 44.4%, Veracity (VRA) at 25.06%, and VisionGame (VISION) with a 20.45% uptick.

Conversely, Web3 gaming tokens that recorded steep losses in the last 24 hours are My Lovely Planet (MLC) and CateCoin (CATE), which fell in value by 22% and 20% respectively. 

According to CoinMarketCap’s end-of-November report, GameFi landed at number 16 on DeFiLlama’s narrative tracker, a weakening influence compared to previous months, despite most DeFi markets having recorded positive inflows from the start of the second half of 2025.

Amid the market downturn, several companies within the Web3 gaming ecosystem announced strategic partnerships last month. Cryptopolitan had reported on November 27 on Pi Network’s collaboration with CiDi Games to expand the real-world utility of its native Pi token. CiDi Games mentioned that the partnership plans to turn Pi into a payment medium for in-game purchases while scaling the blockchain’s gaming infrastructure.

On the same day, EdgeAI Labs unveiled its partnership with PumpGame, previously known as SuiGame, to complete a brand upgrade and migrate its platform from the Sui blockchain to BNB Chain (BSC). 

Despite these partnerships and institutional ventures, Web3 gaming tokens are in an overall downturn, which is extending the gap between hype and actual market adoption. While companies like Pi Network, EdgeAI Labs, and Animoca Brands are trying to innovate and expand the market, developments have not yet offset declining investor confidence.

Sentiment in the GameFi ecosystem is subdued, marked by subdued conversations on Crypto Twitter and some of the lowest enthusiasm levels in the last five years. Much of the Web3 gaming audience use these platforms for speculative purposes rather than their gameplay. This has led to at least 27 studios shutting down between January and October this year.

Venture capital interest has also cooled, with funding for new Web3 gaming initiatives drying up compared to previous cycles. It would take the intervention of triple-A gaming publishers’ interest in Web3 games, together with more funds, to revive Web3 games to levels the industry would consider unmissable. 

Animoca Brands branches into real-world asset tokenization

While the gaming sector struggles, Hong Kong-based Web3 company Animoca Brands has signed a memorandum of understanding with Rayls to branch into tokenizing real-world assets (RWAs). Animoca Brands will use its network to identify asset classes and issuers suitable for tokenization on Rayls’ infrastructure.

According to a press statement released by Animoca, chain-agnostic vault marketplace NUVA will distribute Rayls-tokenized assets, with Rayls providing technology, cross-chain bridges, and settlement infrastructure. 

“Now more than ever, institutional adoption is increasingly important to provide stability and reliability within crypto,” CEO of Rayls’ core developer Parfin Marcos Viriato noted.

Animoca Brands’ Chief Strategy Officer Keyvan Peymani told CNBC the company also plans to launch its stablecoin, accompanied by an RWA marketplace in 2026. In August, the firm established a joint venture with Standard Chartered and Hong Kong Telecommunications named Anchorpoint Financial to apply for a stablecoin license from the Hong Kong authorities.

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