Fresh statistics from Caladan reveal a slump in the Web3 gaming industry, with key trends and insights broken down.

A major downturn has been revealed in the cryptocurrency and blockchain-based gaming sector. According to a new analysis, the Web3 gaming industry has entered a serious slump despite billions of dollars in investment. Based on data from the crypto trading company Caladan, the report states that over 90% of GameFi projects have failed.

Despite over $15 billion being invested in the sector to date, the token prices of projects have lost an average of 95% of their value compared to their peak levels. This has led to a significant erosion of investor confidence and a marked decrease in capital flows to new projects. The “play-to-earn” model, in particular, has lost its sustainability as user growth has slowed. Even projects like Axie Infinity, once considered a flagship of the industry, have experienced sharp declines in user numbers. The report states that more than 300 blockchain-based games have ceased operations to date.

Experts say investor interest is now shifting to different areas. Recently, artificial intelligence, real-world asset tokenization (RWA), and Layer 2 solutions have emerged as the main areas where capital is directed. Analysts emphasize that the Web3 gaming sector hasn’t completely disappeared, but is undergoing a significant restructuring. Accordingly, it’s believed that in the future, projects with more sustainable economic models will survive, and the sector may evolve into a more limited but robust structure.

*This is not investment advice.