Web3 Gaming Landscape: A Five-Year Retrospective

A recent analysis by a prominent cryptocurrency data aggregator has shed light on the challenging terrain of blockchain-based gaming over the past half-decade. The study reveals that a significant portion of Web3 games launched between 2018 and 2023 have struggled to maintain an active user base.

The Rise and Fall of Web3 Games

Out of 2,817 games examined during this period, only 690 have managed to retain a substantial player community. The research defines a game as "unsuccessful" when its 14-day moving average of active users plummets by 99% or more from its peak engagement.

The year 2021 marked a pinnacle for Web3 game launches, with 738 new titles entering the market. However, the subsequent year, marred by significant upheavals in the cryptocurrency sector, witnessed the highest number of game closures, with 742 titles ceasing operations.

Analyzing the Trend

This data suggests an average attrition rate of approximately 80% for Web3 games in any given year since 2018. The study noted a correlation between market cycles and game longevity, with lower failure rates typically coinciding with the latter stages of bull markets, while higher failure rates were observed at the onset of bear market cycles.

Notable Survivors and Current Leaders

While early pioneers like CryptoKitties, which gained traction in late 2017, have seen waning interest, other early entrants such as Decentraland, The Sandbox, and Axie Infinity continue to maintain significant user engagement.

Recent data highlights Alien Worlds, Splinterlands, and Planet IX as the top three games in terms of average unique active wallets between January 1 and April 22, 2023.

A Glimmer of Hope?

Although 2022 saw the highest number of game failures, the trend appears to be slowing in 2023, with 507 projects ceasing operations as of November 27. The research suggests this could potentially indicate a stabilization in the Web3 gaming ecosystem.

As the blockchain gaming industry continues to evolve, these insights offer valuable perspective on the challenges and opportunities that lie ahead for developers and investors in this innovative yet volatile sector.