75% of GameFi Projects Have Closed: Report

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Since its inception five years ago, GameFi has seen a high failure rate of approximately 75.5%, with 2,127 out of 2,817 projects in this space failing, according to a report by CoinGecko.

Analysts explained that this means three out of four Web3 games have become inactive. Following the success of CryptoKitties in late 2017, there has been a rise in popularity of play-to-earn (P2E) games within the crypto community.

This led to the launch of 422 Web3 games in 2018, but 307 of them ultimately crashed. However, as the market entered a bear period in 2019-2020, development and interest in GameFi slowed.

Only 244 projects were launched during this time, and over 94% of startups ended up failing. In 2021, as the market picked up again, the abandonment rate for Web3 games decreased to 45%.

However, in 2022, the number of failed GameFi projects outnumbered the number of new launches at 742 and 693, respectively.