New Data Reveals More than 75% of Web3-Powered Games Failed Over the Last Five Years
A new report published by CoinGecko has indicated that more than 75% of Web 3.0 gaming projects have come to a halt. GameFi projects based on blockchain mentioned in the report have indicated a 99% decline in the 14-day moving average indicator.
2,817 Gaming Projects Launched in the Last Five Years
The report has noted that blockchain-gaming project launched during the last 5 years is folding their operations. The article noted that around 2,817 gaming projects were introduced during 2018 and 2023.
However, only 690 projects out of these projects are currently active with a nominal user base. The criteria set for a massive decline or near closure was a 99% decrease in the overall user base. In 2021, the highest number of blockchain games noted at 738 made a debut.
However, towards the end of the same year around 742 blockchain game projects were closed in the pretext of bear market.
The Impact of Bear and Bull Trends on Blockchain Games
CoinGecko report further indicated that the since 2018, the failure rate for Web 3.0 gaming projects was calculated at 80%. At the same time, the article also found a correlation between the price trend and blockchain game success.
The report noted that during bull runs, the rate of blockchain game failures tend to lower while at the outset of bear trends the rate increases.
CryptoKitties is one of first Web 3.0 games that gained considerable traction in 2017. However, with the passage of time, the adoption rate fell. On the other hand, Decentraland, Axie Infinity, and The Sandbox are also among biggest blockchain game launches that have continued to retain their significant rate of adoption.
Meanwhile, AlienWorlds, Planet IX, and Splinterlands are among top 3 projects in terms of highest average active wallet users during 1st January and 22nd April for 2023. Highest number of web 3.0 halted in 2022 and in 2023 the total number is 507.
Blockchain Game Aggregator Report
Game7 is a blockchain game aggregator that compiled a report indicating that since 2022 blockchain games have undergone a 65% decline noted at just 640. The report further noted that the number of blockchain gaming failures for 2022 was lower in comparison to 2021 at a total of 811.
Nevertheless, a graph shared by the aggregator shows that a boom in Web 3.0 gaming project started in 2021 with only 98 new projects in this niche.
Gaming platform, Immutable has listed more than 200 games such as Arkbound and Galactico Manager. These games account for more than 8+ in funding and distributed 10 million copies worldwide. On the other hand, Balthazar gaming DAO notes that Web 3.0 projects have cash inflows with retail adoption still in primitive stages.
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