Web3 games, once touted as the future of gaming, are facing a harsh reality in 2023. According to researchers at CoinGecko, a staggering 2,127 web3 games have met their demise over the past six years, accounting for at least three-quarters of the genre. These findings are based on data from Footprint Analytics, and a game was deemed a failure if its activity dwindled by more than 99% from its peak.
The decline of web3 games has been a gradual process. In 2018, crypto founders launched 422 games, but within a year, 307 of them had already bitten the dust. While 2019 and 2020 saw slightly improved success rates, with failure rates reaching abysmal lows of 94%, 2023 tells a different story. Out of the 720 games launched this year, a whopping 71% have already met their demise.
But what led to the downfall of these web3 games? Let’s take a look at a few examples of games that started with promise but ultimately tanked:
ConDragon
This game allowed players to catch, upgrade, or trade dragon-themed NFTs. It’s now among the casualties.
Play Today
A blockchain-based golf game, Play Today’s X account no longer exists, hampering its social media engagement.
MetaCash
A virtual world video game with a minuscule market capitalization, making CoinMarketCap resort to negative powers to express it mathematically.
Gods Unchained (GODS)
Once valued at $8.83, it now trades at just $0.39. It faced setbacks, including an “Adults Only” rating from the Entertainment Software Rating Board.
League of Kingdoms Arena (LOKA)
Peaking at $5.37, it’s now trading at just over $0.30, despite raising $3 million in funding.
Phantasma (SOUL)
After peaking at $3.97, it’s currently trading at just above $0.22. While it boasts SmartNFTs, few are being used today.
Splinterlands (SPS)
With a high of $1.27, it now trades at $0.03. Despite aiming to give gamers more control over their assets, it has lost over 90% of its active users.
WAX
Peaking at $5.01, it currently trades at $0.07. Despite collaborations, its daily trading volume has plummeted.
The concept of web3 gaming, once hyped as a revolution, now faces the reality of its high failure rate. It’s a reminder that not all innovations in the crypto space find long-term success. With the majority of web3 games launched since 2017 becoming inactive, the future of this gaming genre remains uncertain.
