According to a recent analysis by Oscar (Memento Mori), the state of gaming tokens in 2025 continues to reflect a challenging environment, marked by a broad decline in post-launch performance. Despite a few standout launches, the general trend remains downward, highlighting ongoing uncertainty within the web3 gaming sector.

Web3 Gaming Tokens Continue to Decline

Web3 Gaming Tokens

As of June 1, approximately 50 gaming token launches have taken place this year, with 37 actively tracked. These tokens have shown an average decrease of 69 percent from their all-time highs, compared to 65 percent in previous observations. This trend underlines a continued decline in investor confidence and market support.

The average market capitalization of these tokens stands at around $18.9 million. When the two largest tokens—NXPC and SONIC—are removed from the calculation, the average drops further to $9.23 million, representing a 51 percent decrease. This adjusted figure more accurately reflects the overall sentiment across the broader segment of gaming tokens.

Web3 Gaming Tokens Continue to Decline

NXPC Sets New Highs Amid Broader Downturn

One exception to the trend is NXPC, the token from MapleStory Universe, which has outperformed all other gaming token generation events in 2025 and potentially even in 2024. With a market capitalization of $232.7 million and a fully diluted valuation of $1.34 billion, NXPC now leads in both categories, overtaking previous leaders such as B3 and SONIC. While NXPC’s launch has generated some enthusiasm, its success remains isolated rather than indicative of a wider recovery in the sector.

Web3 Gaming Tokens Continue to Decline

Increasing Number of Low-Cap Tokens

A growing concern is the increasing number of blockchain gaming tokens with very low market capitalizations. At least 12 tokens currently have a market cap of $2 million or less, although this figure is likely conservative. Due to the exclusion of many micro-cap tokens from tracking, the actual number is believed to be over 20. These small-cap tokens are particularly vulnerable to market volatility and often struggle to maintain visibility and liquidity post-launch.

Volatility Following Token Generation Events

TGT’s recent token launch exemplifies the volatility that characterizes many post-TGE price movements. Launching with a fully diluted valuation of approximately $160 million, the token lost 80 percent of its value in less than two weeks. This rapid decline is not unique to TGT. Other tokens, such as DOOD, have experienced similar downward trajectories shortly after launch. These trends point to the broader difficulty of sustaining value through token-based models in the current web3 gaming environment.

Web3 Gaming Tokens Continue to Decline

Sustainability Concerns and Sentiment

As token-based revenue strategies face increasing strain, many gaming studios may reconsider their participation in web3 gaming. With limited investor support and falling token prices, smaller projects with minimal capitalization may shut down or shift away from crypto-based models altogether. Despite the strong showing by NXPC, overall sentiment across the sector remains restrained. While new data points such as trading volume will be included in future analyses, current indicators suggest that the token launch landscape continues to be difficult, with few signs of immediate improvement.