CoinGecko Study: 75% of Web3 Games ‘Failed’ in Past Five Years

    CoinGecko’s recent investigation into Web3 games has shed light on a concerning trend: over 75% of blockchain games launched within the last five years are categorized as ‘failed,’ witnessing a staggering drop of more than 99% in their 14-day moving average active user count from their peak.

    The study encompassed a significant pool of 2,817 games introduced between 2018 and 2023, revealing that only 690 of these maintain some level of active player engagement.

    For CoinGecko, a ‘failed’ Web3 game is defined by a drastic decline of 99% or more in the 14-day moving average number of active users from its peak.

    Remarkably, despite 2021 boasting the highest number of blockchain games launched in a single year (738 games), the subsequent year, amidst notable crypto market setbacks, marked the highest number of game failures, with a staggering 742 games fizzling out.

    The findings showcase an average failure rate of approximately 80% for Web3 games annually, starting from 2018, as highlighted by CoinGecko’s analysis.

    Interestingly, CoinGecko observed a correlation between lower failure rates coinciding with the tail end of bull markets and higher failure rates marking the onset of bear market cycles.

    While pioneers like CryptoKitties garnered immense attention in late 2017 but gradually lost steam, other early entrants such as Decentraland, The Sandbox, and Axie Infinity continue to maintain their popularity within the Web3 gaming sphere.

    Recent data highlighted Alien Worlds, Splinterlands, and Planet IX as the top three games with the highest average unique active wallets used between January 1 and April 22, 2023, according to CoinGecko’s metrics.

    The trend seems to be shifting slightly in 2023, as the year has shown a slowdown in game failures, totaling 507 projects as of November 27, following a peak in 2022, which recorded the highest number of failed games.

    CoinGecko suggests that this decline in failure rates might signify a potential stabilization in the Web3 gaming landscape.

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