What Went Wrong with NFT Games?
In a recent study conducted by CoinGecko.com, it has been found that 75% of web3 games have become inactive since the emergence of GameFi five years ago. This study follows another report that revealed 95% of NFTs had lost value. Out of the 2,817 web3 games examined, 2,127 have become inactive, resulting in a 75% failure rate.
The rise of GameFi began in 2018, with the success of CryptoKittles. Play-to-earn (P2E) gaming gained popularity, leading to the launch of 422 web3 games in 2018 alone. P2E gaming provides gamers with tangible rewards such as in-game cryptocurrencies and non-fungible tokens.
Decline in Web3 Gaming
Web3 gaming faced challenges during the 2019 and 2020 bear market, resulting in a high failure rate of 94.3% and 94.2%, respectively. However, web3 gaming stabilized in 2021 during the crypto bull run, with a failure rate of 45.9%. But in 2022, the number of dead web3 games reached a record high of 742, with a failure rate of 107.1% due to the crypto market downturn.
In 2023, 70.7% of web3 games launched this year have become inactive. However, as the NFT market begins to recover, there is hope for the gaming sector as well.
Hot Take: The Evolution and Challenges of GameFi
GameFi, the integration of blockchain technology with game theory, has faced significant challenges in recent years. While initially popular, the market segment has experienced a high failure rate, with 75% of web3 games becoming inactive. This decline can be attributed to various factors, including market volatility and a lack of sustained interest.
However, the recent recovery of the global NFT market offers hope for the gaming industry. As the NFT sector continues to evolve, it is likely that GameFi will adapt and improve, providing new opportunities for gamers and developers alike.
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