93% of GameFi tokens plummet 95% from all-time highs

Analysis of more than 3,200 GameFi projects shows that 93% failed and token prices dropped by an average of 95%.

GameFi, an industry that combines gaming with decentralized finance, has faced a sharp decline after its initial rise during the 2022 crypto bull run, with a new report showing that 93% of projects fail.

A survey by ChainPlay in collaboration with Storible analyzed more than 3,200 GameFi projects and found that most of their tokens are down an average of 95% from their all-time highs. The report also shows that GameFi projects have a worryingly short lifespan, with most lasting an average of just four months before disappearing.

The status of GameFi projects in 2024 | Source: ChainPlay

“Compared to other crypto projects, such as memecoins, which have an average lifespan of one year, and typical crypto projects, which have an average lifespan of three years, GameFi projects have an even shorter lifespan, highlighting their increasing instability and inability to sustain momentum.”

ChainPlay

Strangely, venture capital involvement in GameFi has also been hit or miss. Data shows that 42% of venture capitalists made profits, with returns ranging from 0.05% to 1,950%, while the majority (58%) experienced losses, some as high as 99%. ChainPlay says that despite the overall downturn, top-performing VCs continue to see returns, including notorious firms like Alameda Research, but most others are facing significant declines.

Although GameFi has cooled off its 2022 highs, the sector continues to attract investment, albeit more cautiously. In 2024, VC funding for GameFi reached $859 million; This represents a sharp decline of 13% from 2023 and 84.6% from the peak in 2022. ChainPlay suggests that success in the coming years “will likely depend on delivering solid gaming experiences and creating a lasting experience.” value-driven ecosystems.”