CoinGecko Study Unveils 75% Failure Rate Among Blockchain Games Launched Since 2018
Summary:
CoinGecko's study reveals that over 75% of blockchain games launched from 2018 to 2023 are unsuccessful, with only 690 out of 2,817 games maintaining an active player base. The average annual failure rate is around 80%. Factors such as the state of cryptocurrency markets appear to impact these rates. Despite the high amount of failed projects, a handful of games manage to retain high user activity, showcasing potential for stabilization in web3 gaming.
CoinGecko's recent analysis reveals that over 75% of all blockchain-based games, launched within the past half-decade, have typically sunk without a trace. The study examined a total of 2,817 games, debuted between 2018 and 2023, and found only 690 displaying signs of an active player community. CoinGecko classifies a Web3 game as "unsuccessful" in cases where the fortnightly average of active users plummets by 99% or more from the highest point. Thus, over the past five years, more than 75% of all Web3 games have not found success.
The study divulges that 2021 had the distinction of featuring the largest number of blockchain games debut in a single year - a whopping 738. However, the consequent year, which was marked by significant crypto crashes, saw the maximum numer of games falling flat, with 742 games ceasing to exist that same year. This drives the average annual failure rate of Web3 games to approximately 80% since 2018, as per CoinGecko.
It's further observed that periods of reduced failure align with the tail end of bull markets, whereas increased failure was noticed initiating bear market cycles. Complementing this, CoinGecko pointed out CryptoKitties as one of the initial Web3 games that saw considerable popularity in late 2017, but eventually lost steam. Decentraland, The Sandbox, and Axie Infinity are some of the few early Web3 games still in common use.
CoinGecko's recent data shows that Alien Worlds, Splinterlands, and Planet IX topped the list with the highest average of unique active wallets utilized between Jan. 1 and Apr. 22, 2023.
With 2022 suffering the highest count of unsuccessful games, 2023 has so far shown a reduction in this trend, reporting only 507 unsuccessful projects by Nov. 27. CoinGecko suggests this decreased failure rate might point towards a possible stabilizing trend in the world of web3 gaming.
Published At
11/30/2023 12:03:59 AM
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