top of page

AI x GameFi Market Map 2025

Writer's picture: DecasonicDecasonic

Updated: Jan 21

AI’s Impact on Web3 Gaming -- Abdul Al Ali, Venture Investor at Decasonic


In 2021 and 2022, the peak market cap of Web3 Gaming reached $114.1B. Fast forward more than three years, this corresponding market cap has fallen to $23B—approximately 80% lower than its 2021 peak. Despite the ongoing advancements within the Web3 industry and gaming’s significant role in consumerism, gaming remains conspicuously absent from the forefront of the current bull market.  


Iterations are the lifeblood of any innovation cycle and Web3 Gaming is no different.  The innovators in Web3 Gaming have since evolved their player experience to embed and incorporate aspects of community engagement, social connections, game financialization, player monetization and player ownership into their gaming and open world experiences. These aspects are uniquely web3 and led to the formation of a new category, GameFi


This year in gaming was dominated by Tap-to-Earn mechanics, with games like Hamster Kombat ($HMSTR) on Telegram achieving remarkable milestones. At its peak, Hamster Kombat reached a $1B fully diluted valuation (FDV) and onboarded over 130 million wallets to Web3 via its $HMSTR airdrop. Telegram and other social platforms, including Line, emerged as critical onboarding mechanisms for casual GameFi titles. World App, with its mini-app ecosystem, is seeing millions of users daily, offering numerous casual games that are driving engagement and experimentation. For more insights, explore our World Market Map here.


One standout this year was Off the Grid, a free-to-play (F2P) battle royale game that became one of the most highly anticipated titles. It won Game of the Year at the Gam3 Awards and briefly claimed the #1 spot on Epic Games Store’s F2P list, overtaking major titles like Fortnite and Genshin Impact. With its optional blockchain integrations, Off the Grid attracted over 7 million players within days of its October 2024 launch.


Epic Games has continued to expand its support for Web3 titles, adding more than 81 new games in 2024. Yet despite such advancements, GameFi’s onboarding rates, mindshare, and momentum remains sluggish in comparison to other sectors. 


In the early days, challenges in Web3 GameFi largely stemmed from the steep learning curve around blockchain mechanics and tokenomics, as well as high transaction fees on Ethereum before the rise of gas-optimized blockchains and infrastructure. However, we’ve observed a notable evolution in GameFi, marked by a growing focus on casual games, advancements in gas-less transaction infrastructure, and broader accessibility improvements. We believe AI is going to accelerate this evolution in the sector. 


At Decasonic, we believe the intersection of AI and GameFi will catalyze a new gaming supercycle, driving interest, onboarding, and an accelerated growth in GameFi’s market cap. This convergence will reimagine gaming, introducing more adaptive, personalized, and customizable gameplay, enhanced by the decentralized systems that Web3 offers. Together, AI and Web3 will empower players, developers, and creators to engage in open ecosystems featuring increased levels of personalization, interactivity, and community-driven governance.


Since late 2024, AI has increasingly dominated Web3 mindshare, shifting the conversation toward intersections like AI x DeFi and AI x GameFi. We see these intersections as transformative growth drivers for both sectors.


This AI x GameFi Market Map 2025 introduces the current landscape, exploring how the convergence of these two technologies is accelerating Web3 adoption and reshaping the paradigms of creativity, engagement, and community-driven experiences.



AI x GameFi: Catalyzing the Gaming Supercycle


AI has long enhanced game design, with applications such as dynamic NPCs, procedural world generation, and player analytics. However, the fusion of AI and GameFi introduces a new paradigm: decentralized, intelligent ecosystems where ownership, economies, and gameplay are seamlessly integrated.


One of the most transformative innovations in this space is the rise of AI agents. These autonomous entities enhance gaming experiences, manage assets, and interact with players, creating unprecedented levels of personalization and engagement. For example, in Parallel Colony, AI agents simulate human behavior and execute smart contracts autonomously, while in AI Arena, players train AI fighters that adapt over time, blending personalization with competitive gameplay. Alcon, a term pioneered by AI Arena, is also beginning to take shape. Alcon: AI agents that embody creator partnerships, transforming KOLs, gamers, or eSports influencers into custom AI personas. These agents reflect each creator's playstyle, personality, and brand, offering dynamic fan engagement. Fully trained on creator data, they are playable across multiple games and platforms.


AI agents offer a future where static, non-customizable NPCs are replaced by intelligent, adaptable entities. This shift is poised to revolutionize game retention and engagement, moving the industry into a player-centric era. 


Beyond enhancing gameplay, AI also improves liquidity and matchmaking, creating personalized player experiences. Predicting preferences and behaviors, AI can dynamically generate levels, quests, and balanced economies. Although these use cases remain nascent, they represent the potential for transformative change at the intersection of AI and GameFi.


AI has the power to transform gaming by analyzing player behavior to optimize engagement and boost retention. Dynamic game environments that adapt to player actions can keep gameplay fresh and exciting. Further - AI tools can further refine mechanics and content in real time to maximize satisfaction. To this end and relevant to the existing AI x GameFi landscape, we have identified three key pillars in our AI x GameFi Market Map. 


Decasonic’s AI x GameFi Market Map


AI x GameFi Market Map 2025

Our updated axes serve two key goals: aligning audience perspectives with specific use cases and providing actionable insights for founders navigating the Web3 and GameFi space. 


  • X-Axis: Maps products across AI’s standard layers: Compute → Data → Model → Interface → Application.

  • Y-Axis: Differentiates target audiences between Web3 Natives, Web3 Developers, Web3 Players, and Mainstream players. 


This list is dynamic—new applications and projects will continue to emerge as innovation accelerates at the intersection of AI and GameFi.


 

The Three Pillars of AI x GameFi


1. Infrastructure: The Backbone of AI-Integrated Gaming


The infrastructure layer supports the development of AI-powered GameFi ecosystems. Key components include:


  • AI Agents: These intelligent entities autonomously perform tasks, optimize strategies, and interact with players. Over time, AI agents could supplant NFTs in games, managing inventories, economies, and gameplay more efficiently.

  • Generative AI: Tools for designing in-game assets, immersive environments, and entire games democratize game creation, enabling anyone to build their visions.

  • SDKs: Software Development Kits simplify the development of AI-powered, blockchain-enabled games.

  • Compute: GPUs and cloud computing drive Web3 gaming, powering immersive experiences and enabling players to access games seamlessly via the cloud. This infrastructure is essential for scaling and advancing the GameFi ecosystem.

  • Toolings and Frameworks: Specific frameworks and tools enable seamless AI integration into games, ensuring robust development pipelines.

  • Game Engines: Web3-native engines enable the creation of blockchain-integrated games, featuring tokenized economies, generative content, and AI-enhanced mechanics. An example is Digimon, which offers one-click deployment of agentic games where agents and humans co-evolve.

  • Blockchains: Specialized blockchains provide scalability, security, and asset ownership critical for AI x GameFi ecosystems.

    • In this category - we previously published our market maps on the World and Soneium blockchains. 


2. GameFi: Evolving Gameplay and Economies


AI is reshaping GameFi by transforming gameplay mechanics and decentralizing economies. Key components include:


  • AI-Driven Open Worlds: Games featuring adaptive AI agents that evolve alongside players, creating dynamic, immersive environments with societies, economies, and politics run by AI.

  • Agentic Games: Titles where AI agents autonomously manage economies or assist players in innovative ways.

  • Social Games: Blockchain-based casual games fostering collaboration and shared rewards through tokenized incentives.

  • Game IP: Established franchises integrating AI to enrich storylines, gameplay, and economies.

  • eSports: Web3 is empowering influencers, creators, and even AI agents to run decentralized eSports shows and tournaments. AI agents can outperform and supplement traditional eSports by streaming 24/7 and mastering any game using creator data and training inputs. 

  • Mobile: Games unlock broader distribution channels, enabling developers to reach wider, more diverse audiences. They also provide significant opportunities for enhanced gameplay experiences and personalized user journeys, making mobile a critical platform for driving engagement and adoption in the Web3 gaming ecosystem.


3. AI Agents: The Core of AI x GameFi


AI agents are revolutionizing personalization, engagement, and gameplay:


  • Gaming AI Agents: Autonomously participating in games, competing against players, or enhancing player experiences. AI Arena allows players to train AI fighters for strategic battles. 

    • Alcons: Defined by AI Arena, Alcons are AI agents that represent creator IPs, offering personalized, interactive fan experiences. They enable dynamic engagement, are playable across games and platforms, and can even serve as embodiments of eSports creators. 

  • NFT-Based AI Agents: Represented as NFTs, these agents enable ownership and interoperability, unlocking new economic opportunities.

  • Launchpads for AI Agents: Platforms like Virtuals Protocol simplify designing, training, and deploying AI systems into games.


 

Opportunities


As AI x GameFi matures, it presents more emerging opportunities:


  • Economic Automation: AI agents optimize gameplay strategies, manage assets, and participate in DeFi activities, streamlining in-game economies.

  • Creator Empowerment: AI democratizes content creation, while Web3 ensures transparent monetization and fair compensation. Those include the likes of AI Agents similar to Alcons. 

  • Community Governance via DAOs: Decentralized Autonomous Organizations (DAOs) allow players to participate in governance, influencing game development and economic policies. AI agent-run guilds offer untapped opportunities for personalized and scalable engagement.

  • eSports: The intersection of Web3, AI, and eSports unlocks new possibilities. AI agents can compete, organize tournaments, and power virtual teams, while blockchain ensures transparent rewards and ownership. Web3 tools also allow influencers to co-create leagues, driving deeper engagement.

  • Mobile: Mobile Web3 GameFi presents untapped opportunities, especially at the intersection of GameFi and AI. We believe that lightweight, accessible gaming experiences tailored for global audiences are critical to onboarding the next wave of users into Web3. Despite their potential, these mobile-first experiences remain underrepresented. 


 

Conclusion


The AI x GameFi Market Map 2025 outlines a compelling vision for this emerging frontier. If you’re a builder, innovator, or investor interested in exploring AI-powered GameFi, we’d love to collaborate and hear your insights. Reach out to us at Decasonic—together, we can shape the future of this new frontier. 


The content of this material is strictly for informational and educational purposes only. It is not intended to constitute investment advice, nor should it be considered a recommendation or a solicitation to buy, sell, or hold any asset. Decasonic does not endorse investments in any specific tokens, and nothing in these blog posts should be construed as legal, tax, or financial advice. Please consult with a qualified professional advisor before making any financial decisions. Decasonic provides no warranties, whether expressed or implied, on the content provided in these blog posts, including its accuracy, completeness, or correctness. The opinions expressed here are those of the authors and do not necessarily reflect the views of Decasonic. Please note that Decasonic may hold a position in some of the tokens mentioned, including Virtuals. Decasonic is not liable for any errors or omissions in the content of this material or for any actions taken based on the information provided herein.



Comments


bottom of page