More Than 75% Of Web3 Games Underperformed.

The 14-day moving average of active users in "underperforming" blockchain games is below 99% of its peak. While blockchain games have gained attention as an application area for Web3 technology, many game projects have failed to achieve the expected success.

A study has revealed that over three-quarters of blockchain-based games launched in the last five years have failed. Among the 2,817 games released between 2018 and 2023, only 690 still maintain an active player base.

This study defines "failed" Web3 games as those where the 14-day moving average of active users has dropped by 99% or more from its peak, indicating the challenges these games face in sustaining initial interest.

In 2021, 738 games were launched, marking a year of intense development for blockchain games. However, despite this significant surge, the subsequent year saw 742 blockchain-based games ending in failure, overshadowing the market with major collapses.

This situation elevated the average failure rate of Web3 games to 80%. According to the report, lower failure rates typically follow bull market cycles, while higher failure rates often indicate the beginning of bear market cycles.

Some standout Web3 games include CryptoKitties, one of the first games to garner attention around the end of 2017. However, CryptoKitties struggled to maintain the same level of interest in subsequent periods. On the other hand, Web3 games launched in previous years, such as Decentraland, The Sandbox, and Axie Infinity, remain popular to this day.

According to recent data, Alien Worlds, Splinterlands, and Planet IX are games with the most active wallets in early 2023. While 2022 posed challenges for blockchain-based games, the decline in the failure rate in 2023 could be considered a sign of stability in the status of Web3 games.