The Rise of GameFi: A Closer Look at the Success and Failure of Crypto-based Games - Latest cryptocurrency news

The Rise of GameFi: A Closer Look at the Success and Failure of Crypto-based Games

GameFi (game finance) in crypto-based games is experiencing significant attention, according to Coingecko’s analysis. Out of the 2,817 games released between 2018 and 2023, only 690 can maintain an active user base. For a Web3 game to be considered unsuccessful, the active user count must be at least 99% below the peak value.

75% of GameFi ventures end in failure. Unlike the initial years, where the failure rate was below 46% in 2021, the number of failed games reached a record level of 742 in 2022, with a failure rate of 107.1%, the highest ever.

Technology & Populer Science News: Newslinker.co

CryptoKitties, created by Canadian studio DapperLabs at the end of 2017, ignited GameFi and led to the release of 422 Web3 games in 2018. While CryptoKitties was one of the first popular Web3 games, its popularity has significantly declined. Today, popular games include Axie Infinity, The Sandbox, and Decentraland.

Play-to-Earn (P2E) games offer players the opportunity to earn rewards in exchange for their time and efforts. These rewards come in the form of in-game cryptocurrencies and NFTs, which can be sold, traded, or used as collateral in other financial applications.

According to data from January 1st to April 22nd, 2023, the top three games during this period were Alien Worlds, Planet IX, and Splinterlands. The average highest number of unique active wallets for games was recorded. Additionally, the number of non-player Web3 and crypto-based games reached a record level last year, and the count of new Web3 games continues to increase.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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