Although Bitcoin grabbed the attention this week with a stunning surge past $112,000, there has been little fanfare for the GameFi sector.
Despite an overall bullish sentiment now pulsating through the crypto markets, Web3 gaming assets have had a hard time keeping up. Trading volumes have tanked, and a couple of recent scandals have raised some eyebrows. All in all, the week was a pretty stark reminder of how up and down the GameFi world is right now.
Bitcoin Breaks Records, GameFi Barely Reacts
The broader cryptocurrency landscape could hardly have been more favorable. Waves of optimism washed around the digital asset space in the wake of Bitcoin’s all-time high close to $112K.
Yet GameFi—a sector long associated with the speculative altcoin cycles—barely stirred in response to the recent Bitcoin rally. Ecosystem tokens across the Web3 gaming space saw only a modest 4 percent uptick, while worries mounted that trading volumes had plummeted by 22 percent—a sign, perhaps, that the lack of retail and institutional enthusiasm for gaming tokens might continue to hold the ecosystem back, even as capital floods into the broader market.
Even the CMC Altcoin Index, a barometer of altcoin sector performance, crept up just a single point, moving from 27 to 28. The lack of movement illustrates a larger stagnation within the altcoin ecosystem, with GameFi especially struggling. DeFiLlama reports that GameFi has fallen in sector narrative rankings from 13th to 14th, which indicates that interest and influence in GameFi has continued to wane.
Guild of Guardians Defies the Trend with Triple-Digit Gains
Although most of the GameFi sector stayed gloomy, Guild of Guardians (GOG) pulled off an unbelievable feat. The token shot up a staggering 286 percent over the week, easily leaving its peers in the dust and obviously being the top performer in the gaming category. The surge has once more brought attention to GOG’s gameplay model and future roadmap, though one has to question whether it can keep delivering.
A handful of other undertakings also eluded the prevailing pessimistic atmosphere:
- MASK: up to 40 percent
- OL: up 27 percent
- VIRTUALS: increased by 17 percent.
🚀 Week in GameFi: Web3 Gaming Misses the BTC Boost
BTC breaks $112K! But GameFi stays lukewarm! GOG soars 286%! Trading volumes plunge 22%!Let’s unpack what went down in the Web3 gaming world this week. 🧵👇 pic.twitter.com/EhP4dHNO8m
— CoinMarketCap (@CoinMarketCap) May 26, 2025
Nevertheless, some were not so fortunate. Steering gains, NEXPACE, which led the previous week, reversed course and dropped 21 percent as traders rotated capital into newer opportunities. This signals and suggests for investors that GameFi is not as stable as it may seem. A lead kind of capital you can control like Grayscale won’t guarantee a rise in GameFi tokens. And that may indicate for investors that GameFi is not as stable a sector as one might have thought.
These stark reversals and single-project supremacy showcase GameFi’s present vulnerability — where victories are dispersed, and overall industry sentiment is still lackluster.
Scandals and Slow Rebuilds Undermine Confidence
GameFi also received unwelcome press this week with the arrest of Vladimir Smerkis, co-founder of Blum, on charges stemming from large-scale financial fraud involving earlier ventures. Blum was quick to clarify that Smerkis does not work for them anymore, but the reputational hit is likely to stick. Whether potential investors or new users are thinking about the gaming aspect or the financial aspect of GameFi, news like this makes them question whether the whole thing is worth their time and money.
In the meantime, platforms are busily restoring trust and engagement. WEMIX, a foremost GameFi project, took a significant step toward reactivating its user base and regaining momentum after a high-profile hack earlier this year by unveiling a new Mission System. In a different part of the Web3 world, BOXCAT announced not long ago that it would debut on Gate.io, giving an airdrop to holders of the exchange’s GT token—a modest but tokenomic effort to boost initial traction.
These developments might not propel markets in overnight manners, but they do signal a rebuilding phase for GameFi. After the recent explosive growth and the speculative hype that accompanied it, many GameFi platforms seem to be returning to fundamentals. They are focusing on community engagement, platform security, and gradual ecosystem expansion.
While Bitcoin’s command of the headlines and capital expressing itself in the GameFi domain, GameFi finds itself at a bit of a crossroads. The muted sector reaction to a record-breaking week in crypto amplifies the clarity of the situation: Challenges lie ahead, challenges that, if met successfully, lead to a destination called User Trust and Interest That is Not Just Hype. What the market wants to see now is proof that Web3 games can deliver actual lasting value.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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