More than three-quarters of all blockchain games launched in the last five years are dead in the water, according to a recent study from CoinGecko.
Out of 2,817 games launched between 2018 and 2023, which were included in the study, only 690 of them still have a somewhat active player base.
CoinGecko defines a “failed” Web3 game as one where the 14-day moving average number of active users drops 99% or more from its peak.
While 2021 saw the highest number of blockchain games launched in a single year with 738 games, the following year — marred by major crypto collapses, saw the highest number of games to fizzle out, with 742 failing in a single year.
This puts the average failure rate of Web3 games at around 80% for any given year since 2018, according to CoinGecko.
CoinGecko noted that years of lower failure tended to coincide with the back of bull markets, while higher failure years came toward the start of bear market cycles.
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CryptoKitties was one of the first Web3 games that gathered hype in late 2017, but its adoption has since fizzled out. Decentraland, The Sandbox and Axie Infinity are among other Web3 games that have launched in the earlier years and are still widely used today.
Per recent data, Alien Worlds, Splinterlands and Planet IX had the three highest average unique active wallets used between Jan. 1 and Apr. 22, 2023, according to CoinGecko.
While 2022 had the highest number of failed games, 2023 has slowed the trend, with only 507 failed projects as of Nov. 27.
“The lower failure rate could perhaps indicate a stabilization in the state of web3 gaming,” CoinGecko said.
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