Over the past few months, there has been a noticeable downturn in crypto-based games in the GameFi market category, which combines game theory and blockchain technology inside the decentralized finance ecosystem.
A recent analysis by cryptocurrency pricing tracker Coingecko found that a sizable 75% of GameFi ventures have failed. This slump highlights the difficulties that initiatives attempting to combine these cutting-edge ideas with gaming and decentralized money encounter. It also demonstrates the difficulties that exist in this confluence.
Crypto-Based Games Survival Metrics
Only 690 of the 2,817 games released between 2018 and 2023, according to the analysis, still have a reasonably active user base. A Web3 game is considered “failed” by CoinGecko if its 14-day moving average of active users falls by 99% or more from its peak.
According to CoinGecko, since game finance, or GameFi, first appeared five years ago, three of every four Web3 games have ceased to be operational. Only a few months have passed since a different study revealed that 95% of NFTs are now essentially worthless.
Because of the bull market, 2021 had a lower failure rate of over 46%. But the quantity of unsuccessful Web3 games increased to 339, exceeding the numbers from 2018.
The market continued to fall in 2022, a year in which the number of…
