CoinGecko: 75% of web3 games over last five years have failed

CoinGecko’s study reveals a high failure rate in the Web3 gaming sector, with 75% of games launched in the past five years becoming inactive.

A recent CoinGecko study has disclosed that a staggering 2,127 Web3 games, or 75.5% of the total 2,817 launched, have failed in the last five years. This alarming statistic is further accentuated by an average annual failure rate of 80.8% from 2018 to 2023, underscoring the concerning stability of these gaming ventures.

Ever wondered how many Web3 games have failed?

Our study shows that approximately 3 out of 4 Web3 games have become inactive in the five years since the emergence of the GameFi niche.

Read the full study: https://t.co/qxcJ979Pky pic.twitter.com/qgM2eVjxnB

— CoinGecko (@coingecko) November 29, 2023

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2021 had a lower failure rate of 45.9%, which can be attributed to the bull market. However, the number of failed Web3 games rose to 339, surpassing the figures of 2018​​. The market’s decline continued throughout 2022, which saw the failure numbers more than double, hitting a record annual high of 742 failed games, pushing the failure rate to an unprecedented 107.1%​​.

As of 2023, 509 Web3 games have failed, accounting for 70.7% of the games launched this year. This decrease in the failure rate might hint at a potential stabilization in the Web3 gaming landscape​​. The overall blockchain gaming industry still saw increased investments in 2023, and the number of daily unique active wallets also increased in the third quarter. It shows that despite a record number of games failing, investors and users are still optimistic about the sector’s potential.

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