75% of web3 games have failed 

Web3 Games
Key facts:
  • The average annual failure rate for web3 games has been 80% between 2018 and 2023.
  • So far in 2023, 500 web3 games have failed out of the more than 700 that have been launched.

Web3 games, also known as play-to-earn, have done nothing but fail for five years. More than 75% of these projects have ceased operations, and 2,100 of these games have been out of service since 2018.  

According to data provided by the cryptoasset monitoring and analysis firm CoinGecko, around 2,127 web3 games failed in the last five years, representing 75.5% of the total of 2,817 games that have been launched in the same period.  

“In other words, 3 out of 4 web3 games have been inactive,” says CoinGecko, which maintains that the average annual failure rate in games in the cryptocurrency sector has been 80.8% between 2018 and 2023, based on the number of failed protocols compared to those launched.  

A web3 game is a protocol that uses Bitcoin technology to offer a gaming experience. They generally reward users with prizes redeemable in tokens or cryptoassets, which can be traded on the market.  

The failure of web3 games has been observed for several years. Source: CoinGecko.

The trend of failure in the GameFi sector has been highlighted for several years, reaching record numbers in 2022. That year, the number of inactive web3 games doubled and reached 742. That was 107% more compared to the play-to-earn games released during that period. 

The movement continues to be replicated in 2023. This year some 720 web3 games have aired, but more than 70% of them have failed. Some 509 protocols have ceased operations and there is still a month left before the end of the year.  

A sector in crisis

CoinGecko’s data regarding the poor performance of web3 games coincides with the crisis that this sector of the cryptocurrency market has been going through. As reported by CriptoNoticias, the trading volume of the main play-to-earn gaming tokens fell almost 99% in August from 2021.  

The failure of web3 games is also manifested in the drop in active users reported in Axie Infinity, a game that a few years ago enjoyed important prominence in the industry.  

Although it is not clarified in the CoinGecko report, the failure of web3 games could respond to different factors. One of them is the high entry or investment costs to be able to play and access the rewards. offered by these protocols. There are cases in which more than USD 1,000 is needed.  

It could also be due to the lack of attractive games offered for all types of users, considering that most of the protocols that have been launched have remained in the niche and without notable recognition. , with some key exceptions, such as Axie Infinity or Plant vs. Undead.  

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