The GameFi market cap continued its decline and dropped from $24.49 billion to $23.65 billion over the last seven days.
TL;DR
- The January curse hits Bitcoin again
- GameFi market continues to decline
- Cyberkongz responds to Wells Notice
- Axie Infinity’s MMO game announcement expected
- Virtuals Protocol partners with Sovrun ReadyGamer
Introduction
Bitcoin went past $100,000 only to be rejected once again, so the bear circus is back in full swing.
It does seem like it’s nothing out of the ordinary for January.
Market Overview
The GameFi market cap continued its decline and dropped from $24.49 billion to $23.65 billion over the last seven days.
We are still up 69% from the bottom in August 2024.
GameFi tokens are showing off their crab walk and going sideways.
Source: CMC
According to DeFiLlama’s Narrative Tracker, GameFi dropped further and is only ranked 18th, outperformed by crypto majors Bitcoin, Ethereum, Solana and memes.
Top Coin Movements
The top 20 Web3 gaming tokens took a beating with the exception of three projects trying to hold the fort.
Source: CMC
Top Gainers:
- WEMIX (WEMIX): +7.93%
- The Sandbox (SAND): +2.67%
- Echelon Prime (PRIME): +0.09%
Top Decliners:
- Kadena (KDA): -14.87%
- Baby Doge Coin (BabyDoge): -14.04%
- SuperVerse (SUPER): -12.81%
- Beam (BEAM): -12.63%
- Skale (SKL): -10.58%
Blockchain Gaming Activity This Week
Who said Axie was ded? They teased the release of an MMO game which will probably be announced at the end of the year.
CyberKongz has replied to the SEC to defend its Wells Notice.
GameFi’s user activity continues to shine even as the overall market doesn’t perform so well.
- Xterio’s UAW goes on an absolute moon mission and skyrockets by more than 100,000% while they announce details about their first XTER Ecosystem Rewards.
- OasChoice soars by 23,527% with their quiz game for predicting the price of OAS.
- Spincity gains 2,597% where the action never stops.
- Pixudi rises 68.56% as their back-end API is now being prepared for board generation.
- World of Dypians is up 62.11% and their next chapter starts soon.
Latest Blockchain Gaming News
Virtuals Protocol Introduces ReadyGamer
Many Tier-1 games have shown interest in integrating AI agents into their platforms. Virtuals decided to join forces with Sovrun and Renz to do ReadyGamer. They are aiming to incorporate AI, blockchain, and autonomous worlds into Web3 gaming.
The Sovrun partnership is a joint venture where they will co-develop AI infra solutions for gaming that can be used and integrated across Web2, Web2.5 and Web3 games.
Virtuals also recently partnered with Illuvium where they will be building off of Virtual’s G.A.M.E Framework within their games.
https://twitter.com/illuviumio/status/1876631944299249776
Sonic and Galaxy Interactive
Sonic SVM and Galaxy Interactive have launched the G.A.M.E. Fund 1, a $200,000 to $1 million initiative aimed at Web3 gaming and AI agent development.
The fund’s first investment is in Gomble Games with 110 million global users and backing from Animoca Brands and Altos Ventures.
Gomble plans to integrate on-chain solutions and explore TikTok’s Web3 opportunities using Sonic’s Applayer platform, which has already onboarded over 2 million users.
Sonic CEO Chris Zhu highlighted the importance of gaming, AI, and social platforms. Developers can apply for funding and technical support via Sonic’s official site.
Gaming and AI on Bitcoin’s Layer 2
FMCPAY and RUNERA have announced a strategic partnership to revolutionize gaming and AI applications on Bitcoin’s layer 2. RUNERA, a protocol merging gaming and AI using the BRC-20 standard, integrates Bitcoin gas fees for enhanced stability and security.
The collaboration also emphasizes Ethereum Virtual Machine (EVM) compatibility, enabling seamless integration of decentralized applications (DApps) across blockchain ecosystems. They aim to combine Bitcoin’s stability with the flexibility of EVM.
ZkCandy $4M Private Round
ZKcandy, the first layer-2 gaming blockchain based on ZKsync, has completed a $4 million private funding round with contributions by Wemix , Animoca Ventures, Spartan Group and other prominent investors.
This funding follows the success of ZKcandy’s open testnet, which attracted over 2.4 million wallets in just two weeks. The capital will support technological advancements, user interface improvements, and preparations for the mainnet launch in the first half of 2025.
The funding will enable the acquisition of AAA game titles, partnerships, and the development of over 25 games, including one based on a Tier-1 Hollywood IP.
What You Can Do Now
- Focus on quality over hype: look out for games that 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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