3 Out of Every 4 Web3 Games Have Met Their Demise
Three out of every four Web3 games launched in the past five years have met their demise, presenting a bleak outlook for GameFi industry.
Shockingly, only 690 games managed to maintain a somewhat active player base, while a staggering 2,100 games have ceased operations, which translates to an alarming annual failure rate of 80.8% for Web3 games during this period.
The failure rate was calculated by comparing the number of failed games to the total number of games launched.
The discouraging outlook is surprising considering the initial acclaim Web3 gaming received within the crypto community, offering users the ability to earn substantial rewards and tangible value from their gaming experiences.
The sector has also attracted significant interest and investments in the crypto space.
Even in the current year, Web3 gaming projects have secured over $2 billion in funding. However, the CoinGecko report casts doubt on the sustainability of the industry.
More specifically, the failure rate for Web3 games reached 107% last year as a record-high 742 games shut down.
The failure rates for Web3 games in 2019 and 2020 were at a staggering 95%, while 2021 experienced the lowest failure rate at 45%.
The report noted the impact of the bear market on GameFi development and interest, with only 244 Web3 games launched between 2019 and 2020.
During this period, the failure rate rose to 94.3% in 2019 and remained at 94.2% in 2020.
Surprisingly, despite the number of failed games increasing to 339 in 2021, it recorded the lowest failure rate due to the crypto bull run.
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