Bitcoin experienced a notable dip of 8% to $101.3K this week. Despite this, JPMorgan suggests that BTC is undervalued when compared to gold, implying a potential price of $170K. Consequently, the majority of top GameFi tokens have seen significant declines over the past week.
While the broader altcoin market predictably felt the impact of these market movements, privacy coins have emerged as strong performers with substantial rallies. In contrast, leading GameFi tokens are currently in a significant losing streak. TAC Protocol (TAC) has managed to stand out as a modest gainer, picking up 23% this week.
The cryptocurrency gaming landscape has faced considerable challenges this year. In 2025 alone, at least 27 Web3 games and studios have ceased operations.
Nevertheless, the GameFi sector continues to demonstrate resilience, with venture capital investments still flowing in, signaling a strong belief in its future potential rather than questioning its existence.
Web3 Gaming's Strong Showing
Despite the general market trend referred to as "Redtober," Web3 gaming captured nearly 28% of all DApp activity in October, marking its highest share of the year. The Decentralized Finance (DeFi) sector followed closely, accounting for 18% of DApp activity. Even with a slight decrease to 16 million active wallets, gaming played a crucial role in sustaining Web3's overall activity.
In a notable development for the anime and Web3 crossover, Tatakai has secured $7 million in early funding from prominent investors including Tencent, YGG, and Immutable. The Tokyo-based studio plans to expand its team, enhance gameplay features, and bolster its NFT infrastructure as it develops a meticulously crafted anime RPG. This game will combine card battles with an open-world experience.
GameFi Sector Review
This week saw a net outflow of liquidity from the Web3 gaming sector. The market capitalization for the sector decreased by 10%, reaching $11.6 billion. Trading volume experienced a slight reduction, falling to $2.56 billion.
During the week, the Altcoin Season Index declined from 29 to 23, indicating a continued trend of tokens experiencing significant losses.
Top Gainers
- •Phala Network (PHA): +31.96%
- •TAC Protocol (TAC): +23.12%
- •SWEAT (SWEAT): +11.43%
- •inSure DeFi (SURE): +11.11%
- •XBorg (XBG): +8.16%
Top Decliners
- •Wilder World (WILD): -70.71%
- •Seedify.fund (SFUND): -33.5%
- •FUNToken (FUN): -33.15%
- •Akedo (AKE): -27.85%
- •Open Loot (OL): -23.24%
Web3 gaming maintained its 18th position on DeFiLlama’s narrative tracker. This week, most sectors lagged, and the primary focus was on maintaining stability.
Web3 Gaming News This Week
Moonfrost Switches Lanes
The farming RPG Moonfrost is transitioning away from Web3 to launch as a traditional title on Steam. Concurrently, it will introduce Frost Arcade to maintain its crypto-focused offerings for players who prefer on-chain engagement.
YouTube Calms Crypto Gamers
YouTube's recently updated gambling policy initially caused widespread concern within the GameFi community, leading to panic. However, the platform has since confirmed that content related to crypto and NFT gaming remains permissible. The GameFi sector had feared that the new policy, which targets items with monetary value such as in-game skins and crypto tokens, would lead to the banning of their content creators.
Wilder World Sheds 70% of Token Value
Wilder World experienced a highly volatile week, with its WILD token suffering a flash crash. The token's value plummeted from $0.20 to below $0.02 before recovering to $0.06. This significant price drop was attributed not to a security breach or exploit, but to a "cascading liquidation event originating from the WILD PeaPods lending pool." Despite this sharp decline, the crypto game asserts that it still possesses substantial potential.
Strategic Considerations
- •Review your portfolio to safeguard capital during the current market downturn.
- •Avoid making impulsive decisions driven by Fear Of Missing Out (FOMO); maintain patience as altcoin prices stabilize.
- •Monitor venture capital flows to identify where liquidity is being directed within the market.