- Over the last five years, out of the 2,817 Web3 games launched, 2,127 have met their demise.
- In the 2021 bull run, the crypto gaming industry recorded a low failure rate of 45.9%.
- However, 2022 witnessed a record annual high of 742 dead Web3 games, marking an unprecedented failure rate of 107.1%.
The prominent market tracker Coingecko has published a new research report capturing the failures of the crypto-based GameFi industry. According to the report, the GameFi market, once hailed as the future of play-to-earn (P2E) gaming, is facing a crisis with a staggering failure rate of 75.5% among Web3 and crypto-focused games.
Specifically, Coingecko disclosed that over the last five years, out of the 2,817 Web3 games launched, 2,127 have met their demise. Per the disclosure, this figure implies three of every four launched games have died down through the years.
Furthermore, the study elaborated on the alarming trend, noting an average annual failure rate of 80.8% from 2018 to 2023. The report noted that the early days of GameFi, spurred by the success of CryptoKitties in late 2017, saw a rush of 422 Web3 games in 2018. However, 307 of them failed within the same year.
On the other hand, the study highlighted that amid the 2019–2020 bear market, GameFi development and interest waned, leading to a decline in game launches to 244. Yet, the failure rate skyrocketed to 94.3% in 2019 and held steady at 94.2% in 2020.
Meanwhile, during the crypto bull run in 2021, the crypto gaming industry recorded a comparatively lower failure rate of 45.9%, despite a surge in the number of failed Web3 games, reaching 339, surpassing the failures recorded in 2018.
However, 2022 witnessed a grim milestone with a record annual high of 742 dead Web3 games, marking an unprecedented failure rate of 107.1%. This alarming trend persisted even as the number of new Web3 games remained high, the report noted. As of 2023, 509 Web3 games have already faced failure, constituting 70.7% of the games launched this year.
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