Web3 gaming industry has collapsed, with over 90% of projects failing

Despite over $15 billion being invested into the Web3 gaming market, the industry has effectively collapsed, according to a new analysis. CoinDesk reported that according to crypto trading firm Caladan, 90% of all GameFi projects have failed. Token prices for these projects have fallen approximately 95% from their all-time highs, and investment has plummeted. The play-to-earn (P2E) model collapsed as new user growth slowed, and major projects like Axie Infinity have seen a sharp decline in users. Investment capital has since shifted to AI, RWA, and Layer 2 infrastructure, while over 300 blockchain games have shut down, the report added.