CoinGecko: Over 75% of Web3 Games Have Failed in the Past Five Years

CoinGecko: Over 75% of Web3 Games Have Failed in the Past Five Years

CoinGecko: Over 75% of Web3 Games Have Failed in the Past Five Years

According to a recent study by cryptocurrency information platform CoinGecko, out of the 2,817 blockchain games launched between 2018 and 2023, only 690 still have a certain level of active player base.

The year 2021 saw the highest number of blockchain game launches, reaching 738. However, the following year, due to the collapse of major cryptocurrencies, the number of failing games gradually increased to 742. The CoinGecko report indicates that this has resulted in an average failure rate of approximately 80.8% for Web3 games since 2018.

CoinGecko defines “failure” for Web3 games as those that experience a 99% or more decrease in average active users compared to their peak value over a 14-day moving average. The platform notes that years with lower failure rates often coincide with the late stages of a bull market, while higher failure rates occur at the beginning of bear market cycles.

The year 2022 had the highest number of failed games, but the trend slowed down in 2023. As of November 27th, there were only 507 failed blockchain game projects. CoinGecko states, “A lower failure rate may indicate a more stable condition for Web3 games.”

CryptoKitties, one of the first Web3 games to be hyped at the end of 2017, has gradually declined in popularity since then. Additionally, early Web3 games such as “Decentraland,” “The Sandbox,” and “Axie Infinity” continue to be widely used.

Source:
CoinGecko