A recent study conducted by CoinGecko has revealed a startling trend in the world of blockchain games. Over the past five years, more than three-quarters of blockchain games that were launched have met their demise.
Out of a total of 2,817 games introduced between 2018 and 2023, only 690 of them continue to maintain a somewhat active player base.
CoinGecko classifies a “failed” Web3 game as one where the 14-day moving average of active users drops by 99% or more from its peak.
The year 2021 marked a significant milestone as it saw the highest number of blockchain games launched in a single year, with a staggering 738 games making their debut.
However, the following year, plagued by major crypto collapses, witnessed the highest number of games fizzling out, with 742 failing within that single year.
This grim statistic paints a rather bleak picture, suggesting an average failure rate of around 80% for Web3 games in any given year since 2018.
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Interestingly, CoinGecko observed a correlation between the failure rate of these games and the overall state of the cryptocurrency market.
Years with lower failure rates tended to align with the tail end of bull markets, while years with higher failure rates typically occurred at the outset of bear market cycles.
Notably, some early pioneers in the Web3 gaming space, like CryptoKitties, which garnered considerable hype in late 2017, have seen their adoption dwindle over time.
In contrast, games like Decentraland, The Sandbox, and Axie Infinity, which launched in the earlier years, continue to enjoy widespread usage.
According to recent data, Alien Worlds, Splinterlands, and Planet IX have boasted the three highest average unique active wallets between January 1 and April 22, 2023, according to CoinGecko.
While 2022 marked a peak in the number of failed games, 2023 has shown signs of a slowdown in this trend, with only 507 failed projects as of November 27.
CoinGecko suggests that this lower failure rate could signify a potential stabilization in the state of Web3 gaming, hinting at the resilience and adaptability of the industry in the face of challenges.
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