Three-quarters of Web3 games fail = CoinGecko report

Many of the Web3 games are no longer active.

On the 29th, crypto asset (virtual currency) data site CoinGecko released a report stating that over the past five years, three-quarters of GameFi projects have failed.

Of the 2,817 Web3 games launched over the past five years, 2,127 have failed, a rate of 75.5%.

The methodology was to examine 2,817 Web3 games released between 2018 and 2023 and identify the number of games that are no longer active based on analytical data as of November 2023.

In this case, we determine that activity has stopped when the 14-day moving average of the number of active users has decreased by 99% or more from its peak.

connection: Overview of GameFi and explanation of upcoming projects CONNECTV/Video commentary

From 2018 to present

CoinGecko also presents data for each year starting in 2018.

Source: CoinGecko

GameFi first came into the spotlight after the game CryptoKitties, released by Dapper Labs in late 2017, became a huge hit. As a result, 422 Web3 games were released in 2018, with 307 subsequently deemed failures by CoinGecko’s criteria cited above.

connection:What is the underlying blockchain “Flow” of “CryptoKitties” and “NBA TopShot”?

Then, a bear market occurred from 2019 to 2020, and development and interest in GameFi declined. The number of Web3 games released in the past two years is also only 244. At the same time, the failure rate increased, reaching 94.3% in 2019 and 94.2% in 2020.

On the other hand, in 2021, the failure rate of Web3 games hit the lowest level of 45.9% due to the bullish market of virtual currencies. The number of games launched jumped to 738 from 86 last year, and the number of games that failed rose to 339 from 81 last year. However, the failure rate has dropped significantly.

By 2022, the number of inactive Web3 games has more than doubled to 742. The failure rate has also reached the highest value of 107.1%.

And this year, 2023, 509 Web3 games are inactive so far. This represents 70.7% of the games launched this year. CoinGecko speculates that the decline in failure rates may indicate that the state of Web3 gaming is stabilizing.

As of July 2022, former Goldman Sachs analyst Grant Haseley said that even with the stagnation of the virtual currency market, venture capital (VC) is stepping up investment in the GameFi field.

connection：Even in the winter of virtual currency, VC funds gather in GameFi sector = Blockworks

Square Enix NFT game

As for recent developments, Square Enix, a major domestic game company, is currently developing an NFT (non-fungible token) game called “SYMBIOGENESIS,” and on the 24th, details regarding the sale of the first chapter’s characters and the game’s start schedule were announced. Published. The game is scheduled to start on December 21st.

connection: “SYMBIOGENESIS” releases sales information for the first chapter of Square Enix’s latest NFT game

The post Three-quarters of Web3 games fail = CoinGecko report appeared first on Our Bitcoin News.