A Study Unveils That More Than 75% Of Blockchain Games Introduced Within The Past Five Years Failed

Cointelegraph reports that a recent CoinGecko study indicates that over 75% of blockchain-based games that were introduced within the previous five years have encountered failure. A mere 690 out of 2,817 games that were released during the period from 2018 to 2023 maintain a moderately active player base. A 'failed' Web3 game is one that experiences a 14-day moving average of active users that decreases by 99% or more since its apex, as defined by CoinGecko. Since 2018, the average failure rate of Web3 games has been around 80%.

In contrast to 2021, which witnessed the most blockchain games being released in a single year, with 738, the subsequent year, which was rife with significant cryptocurrency failures, witnessed the greatest number of games fail, with 742. Years with lower failure rates tended to occur at the end of bull market cycles, according to CoinGecko, whereas years with higher failure rates occurred at the onset of bear market cycles. Late in 2017, CryptoKitties was among the initial Web3 games to generate considerable interest; however, its widespread adoption has since waned. Web3 games such as Decentraland, The Sandbox, and Axie Infinity, which debuted in earlier years, continue to enjoy extensive usage even in the present day.

Recent data indicates that between January 1 and April 22, 2023, the three games with the highest average number of unique active wallets were Alien Worlds, Splinterlands, and Planet IX. Compared to 2022, which had the maximum count of unsuccessful games, the rate of failure in 2023 has decelerated to 507 projects as of November 27. According to CoinGecko, the decreased failure rate may indicate that the status of web3 gaming has stabilised.