Over 90% of GameFi Projects Dead, New Study Finds
According to the latest report from ChainPlay, 93% of Web3 GameFi projects are dead. The company analyzed 3,279 projects and determined that the average application value was down 95% from its all-time high.
No segment of the industry has been able to truly escape this massive downward pressure, but some venture capital firms have managed to make profitable investments.
GameFi free fall
ChainPlay publishes this grim analysis GameFi industry on it blog This week. Essentially, GameFi funding and enthusiasm peak The year is 2022, but it turns out most businesses are completely unsustainable. Even this year’s well-publicized airdrop Didn’t stop this apparent decline.
These statistics are so alarming that the report makes no claim that any area shows healthier returns.
For example, Some industry commentators have suggested That Click to earn games It is the future of GameFi investing. Cloud gaming is also growing, Aethir recently created a $100 million fund for its development. However, none of this reversed the downward trend.
Nonetheless, ChainPlay is well aware that profitable returns do exist. The average profit for retail investors is 15%, and the report states that for these small users, “the desire to achieve financial success through GameFi has turned into a terrifying reality.” Institutional investors, however, are seeing higher returns.
“For venture capitalists (VCs), the polarization of returns was much more severe. The average VC profit was 66%, demonstrating that strategic bets are still paying off despite overall market difficulties. Top performers of people are also among the top supporters of the cryptocurrency market, showing that careful venture capital can still generate profits,” ChainPlay claims.
However, the best performing VC firms are Controversial FTX spinoff Alameda Researchits return on investment is 713.15%. Considering the massive fraud Alameda was involved in, it’s unlikely that its GameFi strategy will be a replicable model.
All told, GameFi investment in 2024 is down more than 84% from the 2022 peak. Venture capital firms are still making strategic bets on certain projects that could generate useful returns. However, for individual users, ” volatility What once promised huge upside potential has now proven to be a double-edged sword,” the profit results were grim.
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