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The Stark Reality of Web3 Gaming’s Success and Failure
A recent report by CoinGecko presents a startling yet insightful analysis of the Web3 gaming industry over the last five years. According to CoinTelegraph, of the 2,817 Web3 games launched between 2018 and 2023, only 690 have managed to maintain a viable user base. This statistic indicates a staggering failure rate of over 75%, with an annual average failure rate nearing 80%. CoinGecko defines a failed game as one whose average active user count has plummeted by more than 99% from its peak.
Analyzing the Trends: Peaks and Troughs
The year 2021 witnessed the highest number of game releases at 738, while 2022, a year marked by the collapse of major virtual assets, saw an unprecedented 742 games failing. CoinGecko correlates lower failure rates with retreating bull markets and higher rates with the onset of bear markets.
The Web3 Gaming Landscape: A Mixed Bag of Success and Struggles
The landscape of Web3 games is diverse. CryptoKitties, one of the first Web3 games launched in 2017, initially saw significant popularity but later struggled. Conversely, Decentraland, The Sandbox, and Axie Infinity have consistently attracted players, remaining popular in the Web3 gaming space. Alien Worlds, Splinterlands, and Planet Nine have recorded the highest average unique wallet activity from January 1 to April 22 this year.
A Silver Lining in 2023?
Despite the daunting numbers, there’s a glimmer of hope. As of November 27 this year, only 507 projects have failed, suggesting a potential stabilization and slowdown in the failure trend within the Web3 game ecosystem.