Market Performance and Trends
The market value of Web3 gaming tokens currently stands at $8.83 billion, representing a significant year-over-year decline of 69% and a 34% decrease in the past month. This downturn occurs despite a flurry of partnership news within the crypto winter, which has failed to stimulate trading volumes.
In late November, the GameFi sector experienced a brief bullish period, with its market capitalization increasing by 7% over two weeks and nearing $10 billion. Trading volume also surged by 103%, reaching $6.1 billion during this time.
However, this rally proved to be short-lived. A correction on December 1 pushed the industry’s market value below $9 billion for the first time in over a year, according to CoinMarketCap data. This decline highlights the struggle of Web3 gaming, a highly hyped segment of the blockchain industry, to maintain relevance since its inception.
Token Performance: Profits and Losses
The harsh market conditions in December saw only a few Web3 gaming tokens achieve positive gains. Notable performers included Game Company (GMRT) with a 142% increase, Echelon Prime (PRIME) with a 44.4% rise, Veracity (VRA) up by 25.06%, and VisionGame (VISION) with a 20.45% uptick.
Conversely, several tokens experienced significant losses in the preceding 24 hours. My Lovely Planet (MLC) and CateCoin (CATE) saw their values fall by 22% and 20% respectively.
A report from CoinMarketCap at the end of November indicated that GameFi ranked 16th on DeFiLlama’s narrative tracker. This position signifies a weakening influence compared to previous months, even as most DeFi markets recorded positive inflows in the latter half of 2025.
Strategic Partnerships Amidst Downturn
Despite the overall market downturn, several companies within the Web3 gaming ecosystem announced strategic partnerships in the past month. On November 27, Pi Network revealed a collaboration with CiDi Games aimed at enhancing the real-world utility of its native Pi token. CiDi Games intends to integrate Pi as a payment method for in-game purchases and scale the blockchain's gaming infrastructure.
On the same day, EdgeAI Labs announced its partnership with PumpGame, formerly known as SuiGame. This collaboration involves a brand upgrade and the migration of PumpGame's platform from the Sui blockchain to BNB Chain (BSC).
Despite these strategic alliances and institutional engagements, Web3 gaming tokens continue to face a downward trend. This situation exacerbates the gap between market hype and actual adoption. While companies like Pi Network, EdgeAI Labs, and Animoca Brands are actively innovating and seeking to expand the market, their developments have not yet been sufficient to counteract declining investor confidence.
Sentiment within the GameFi ecosystem remains subdued, reflected in muted conversations on platforms like Crypto Twitter and some of the lowest enthusiasm levels observed in the last five years. A significant portion of the Web3 gaming audience utilizes these platforms for speculative purposes rather than for gameplay. This trend has contributed to the closure of at least 27 studios between January and October of this year.
Here’s the list of crypto games and studios
That shut down in 2025
• Battlebound / Anterris
• Blade of God
• Blast Royale
• Champions Ascension
• Derby Race
• Ember Sword
• Goombles
• JungleXYZ
• Kryptomon
• Hello Monster
• Loot Legends
• Metalcore
• Mystery…— StarPlatinum (@StarPlatinum_) October 30, 2025
Venture capital interest in new Web3 gaming initiatives has also diminished significantly compared to previous funding cycles. A substantial revival of Web3 games to levels considered unmissable by the industry would likely require the intervention of triple-A gaming publishers' interest in Web3 games, alongside increased investment.
Animoca Brands Expands into Real-World Asset Tokenization
While the Web3 gaming sector navigates its challenges, Hong Kong-based Web3 company Animoca Brands has entered into a memorandum of understanding with Rayls. This agreement marks Animoca Brands' expansion into the tokenization of real-world assets (RWAs). Animoca Brands will leverage its network to identify suitable asset classes and issuers for tokenization on Rayls’ infrastructure.
According to a press statement from Animoca Brands, NUVA, a chain-agnostic vault marketplace, will be responsible for distributing Rayls-tokenized assets. Rayls will provide the necessary technology, cross-chain bridges, and settlement infrastructure for this initiative.
Marcos Viriato, CEO of Parfin, the core developer of Rayls, emphasized the growing importance of institutional adoption, stating, "Now more than ever, institutional adoption is increasingly important to provide stability and reliability within crypto."
Animoca Brands' Chief Strategy Officer, Keyvan Peymani, informed CNBC that the company also intends to launch its stablecoin and an RWA marketplace in 2026. In August, Animoca Brands established a joint venture named Anchorpoint Financial with Standard Chartered and Hong Kong Telecommunications to pursue a stablecoin license from Hong Kong authorities.