Welcome to Decasonic's newsletter! Join us as we delve into the depths of industry insights, explore top-of-mind perspectives, and share about upcoming events and initiatives.

AI x GameFi Market Map 2025

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.

Market Overview of AI x GameFi

Emerging Viewpoints on the AI x GameFi Landscape

-- Abdul Al Ali, Venture Investor at Decasonic

As always - it has been an eventful weekend in crypto. The launch of the $TRUMP and $MELANIA meme tokens have captured the attention and mindshare of institutional and retail funds and investors alike. As mainstream adoption accelerates, a sector that is increasingly in focus is the AI x GameFi market. We believe this market remains in its early innings and infancy, and that it will be advanced by the continued AI advancements made both in Web2 and Web3. It is a sector that will stand to benefit from mainstream adoption, mainstream onboarding, and institutional onboarding to crypto and on-chain. 

While the Web3 AI mindshare has cooled off from its all-time high, as reflected in the trends observed on platforms like Kaito, we remain confident in the sector's long-term trajectory. The intersection of Web3 and AI is poised to gain renewed momentum, driving increased mindshare, attracting founders, and advancing innovative projects. As the Web3 x AI supercycle unfolds, we believe this convergence will continue to be a significant force.

Top of Mind

• Paul shared his thoughts on how to make the United States the Crypto Capital of the World in a recent LinkedIn post here

• Kathy highlighted her key takeaways from a panel she recently joined at the 1871 FinTech Innovation Summit in a recent LinkedIn post here.

• Paul shared his perspective on how we’re entering a new era of U.S. crypto policy in a recent X post here

• Abdul  discussed how $Trump validates Decasonic’s graduation framework for community tokens in a recent X post here

Where to Find Us

• Paul will be @ Satoshi Roundtable Dubai, Jan 30 - Feb 4, Dubai

• Paul, Kathy, and Abdul will be @ ETH Denver 2025, Feb 23 - Mar 2

  • Super Agent Hackathon, Feb 26

  • Connect & Recharge, Denver Edition, Feb 27

Thanks for reading!

Follow Decasonic on Twitter, Telegram, and LinkedIn for daily insights on the web3 ecosystem, Decasonic happenings, and beyond.

Are you or someone you know building in crypto or web3? Get in touch with the investment team here.

^{_{The content of this newsletter is strictly for informational and educational purposes and is not meant to constitute investment advice, or a recommendation or solicitation to buy or sell any asset or to make any financial decision. Nothing in this newsletter should be considered legal or tax advice. You should consult with your own professional advisor before making any financial decision. Decasonic offers no warranties on any content in the newsletter, including that it is accurate, complete, or correct. The opinions expressed in this newsletter are those of the authors and do not necessarily reflect the views of Decasonic. Decasonic is not liable for any errors or omissions in the content of this newsletter or for any actions taken based on the information provided herein}}