Week in GameFi: Web3 Gaming Surges 50% Despite Altcoin Downturn

Web3 gaming tokens keep winning with a sharp increase in market cap and trading volume.

TL;DR

Bitcoin stabilizes above $100K, but there is room for volatility.
Gaming tokens enjoy a consecutive week of gains.
Web3 gaming activity slowed down, but sector is healthy.

The crypto market continues to show signs of stability, with Bitcoin maintaining its position above the $100,000 mark. However, two major developments could introduce volatility in the near term: the Wisconsin Investment Board has begun liquidating its BTC ETF holdings, and the FTX estate is set to distribute over $5 million to creditors by the end of May.

Despite these movements, broader market sentiment remains largely unchanged from last week. The CMC Fear and Greed Index sits at 69—just a one-point dip from last week’s 70—still firmly in "greed" territory.

What role has this played in shaping GameFi's trajectory this week?

GameFi Sector Review

Web3 gaming posted a strong performance this week, with the sector’s market cap increasing by over 50% and trading volume rising 78%. These gains came even as the CMC Altcoin Season Index declined from 39 to 27, suggesting that Web3 gaming is moving independently of broader altcoin trends.

Source: CoinMarketCap

Performance among the top 10 gaming tokens was mixed this week, with most seeing modest gains. However, there were standout performers, with NEXPACE (NXPC) stealing the show with a 78% gain.

Top Gainers

While some gaming tokens posted gains, others moved in the opposite direction. Illuvium (ILV) and Hamster Kombat (HMSTR) led the weekly losses, falling 17%—the steepest drop among major Web3 gaming assets.

Top Decliners:

Illuvium (ILV): -16,64%
Hamster Kombat (HMSTR): -16.53%
Mythos (MYTH): -12.72%
WEMIX (WEMIX): -6.77%
Big Time (BIGTIME): -3.11%

Web3 gaming tokens are being noticed this week, rising from 18th to 13th place on DeFiLlama’s narrative tracker.

Source: DeFiLlama

Web3 Gaming Activity This Week

DappRadar Says Web3 Gaming Slowing, But Maturing

Blockchain gaming saw a 10% drop in user activity and a 69% decline in funding in April, according to DappRadar. Despite the slowdown, analysts say the ecosystem is evolving, with weaker projects fading and investment shifting toward infrastructure, quality games, and long-term builders.

View post on Twitter

OuterLife Brings 20M+ Gamers Into Web3 With Real Rewards

OuterLife is a new Web3 gaming ecosystem backed by PlayWay and GameSwift, designed to onboard over 20 million players. It offers a connected digital universe with cross-game progression, NFT utility, and real asset ownership.

View post on Twitter

Bombie Shifts GameFi From Hype to Sustainability

Bombie is redefining GameFi by moving from play-to-earn to a stake-to-earn model, aiming to solve common issues like user drop-off and short-lived value.

What You Can Do Now

Position your portfolio as gaming tokens' market cap jumps over 50%.
Keep an eye out for new Web3 games and earning opportunities.
Track blockchain gaming as its activity dipped in April.

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