The GameFi sector is facing huge challenges with the rise of AI DApps and the lack of games developed to attract traditional gamers.
TL;DR
- The GameFi sector faces challenges
- AI and gaming may be the next big thing
- Rumble Kong League migrates to Ronin
- All eyes are on Sony with Soneium
Introduction
Web3 gamers have their eyes on Soneium to find out whether Sony PlayStation will join the party. That could finally send GameFi to Valhalla, after years of false starts.
Sony’s Ethereum scaling network, Soneium, officially launched, with its creators promoting it as a way to bring blockchain technology to the mainstream.
While Soneium aims to focus on areas like film, music, and gaming, there is some speculation about whether Sony’s PlayStation brand could eventually join the ecosystem.
Sota Watanabe, Director of Sony BLS, said that Soneium could onboard normies into crypto by serving as a behind-the-scenes technology.
The GameFi sector is facing huge challenges with the rise of AI DApps and the lack of games developed to attract traditional gamers, but it seems like these two technologies, AI and Web3 gaming, could be the perfect match. After all, top AI Agent project Virtuals actually started as an AI gaming play.
To say that Ronin is gaining serious traction would be an understatement—another game, Rumble Kong League, recently migrated from Avalanche to Ronin.
Bitcoin reached a new all-time high (ATH) ahead of the U.S. presidential inauguration but has since pulled back to $104,300 at the time of writing. Everyone and their grandmother is waiting for Trump’s next move, meanwhile, MicroStrategy acquired another $1.1 billion BTC, which caused a mini relief rally before dropping again.
Market Overview
The GameFi market cap nosedived in one of crypto’s craziest weeks by more than 15% from $24.35 billion to $20.66 billion over the last seven days, giving up much of 2024’s sweet gains as Bitcoin and the Trump meme coins took over.
The bounce we have had since the bottom in August 2024 is starting to lose momentum.
GameFi tokens continue to go sideways.
Can someone please tell Trump about the Web3 gaming sector?
Source: CMC
According to DeFiLlama’s Narrative Tracker, GameFi almost ended in last place, only outperforming NFTs.
Top Coin Movements
The top 20 Web3 gaming tokens are down bad this week with only one token, GOMINING, showing gains.
Source: CMC
Top Gainers:
- GoMining (GOMINING): +4.11%
Top Decliners:
- Echelon Prime (PRIME): -27.83%
- GMT (GMT): -22.26%
- Enjin Coin (ENJ): -21.55%
- Notcoin (NOT): -20.70%
- Baby Doge Coin (BabyDoge): -20.45%
Web3 Gaming Activity This Week
Many Web3 gaming Token Generation Events (TGEs) are not performing well.
Sky Mavis showed their commitment by relocking unlocked tokens representing 8% of RON’s total supply.
GameFi’s overall market cap might be down, but adoption does not slow down.
- Pixudi’s UAW soars by 38.79% as their new update is now complete.
- Sweat Economy rises by 6.77% and SWEAT is the first crypto asset powering The Movement Economy.
- World of Dypians gains 4.07% and continues to shine as one of the top drivers on SuiNetwork.
- Moonveil goes up 4.05% while they are busy with their Puffy Match competition.
- KGen grows by 1.99% and KGeN Proof of Gamer officially releases in a few weeks.
Latest Blockchain Gaming News
Rumble Kong League Migrates to Ronin
Rumble Kong League (RKL), a mobile 3v3 basketball game with ties to NBA stars Stephen Curry and Paul George, has announced its migration from the Avalanche blockchain to the Ethereum sidechain Ronin.
The developers highlighted Ronin’s large user base, including 17.2 million wallet downloads and 18.9 million RON token holders, as key factors in the decision.
To mark the transition, the game will extend its soft launch on iOS and Android to welcome Ronin users and double in-game FAME rewards, which will later be redeemable as on-chain tokens by Q1 2025.
Blockchain Gaming Challenges
Web3 gaming has struggled with many challenges, including a lack of sustained player engagement, flawed funding models, and competition from emerging technologies like AI-driven DApps which outperformed blockchain gaming in user activity in late 2024, according to Blockchain Game Alliance.
Source: BGA
Many traditional gamers refuse to play Web3 games due to their focus on blockchain elements rather than delivering fun experiences. Industry leaders and OGs highlight the importance of prioritizing the development of enjoyable games rather than focusing heavily on blockchain technology and tokenomics.
The growth of AI-driven DApps has significantly increased the level of competition. However, AI also offers opportunities for blockchain gaming. Developers can use AI with technologies like virtual reality and decentralized identity protocols to innovate and attract players.
Funding for blockchain gaming has also become more challenging, with a significant decline in traditional venture capital investments. This shift has pushed developers to explore alternative funding models, such as community-driven campaigns, strategic partnerships, and early access programs.
What You Can Do Now
- Focus on quality over hype: look out for games people play for fun rather than just for earning.
- Check for real utility and in-game integration: projects where tokens and NFTs have multiple use cases within the game, such as staking, upgrades, and crafting, tend to be more sustainable.
- Evaluate team experience and transparency: teams with a proven track record in gaming or blockchain are more likely to deliver.
- Assess community activity and growth: high player retention and active communities (Discord, Twitter, Reddit) show that a game can attract and keep players.
- Check out all the latest developments where AI meets gaming.
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