Jadi Lily Liu from the Solana Foundation recently said that blockchain gaming is already dead and won't come back. I think this statement is quite heavy, but looking at the facts, there is some truth to it.

Everyone used to be really excited about the potential of gaming on the blockchain, right? Solana was even considered the most suitable chain for scaling large blockchain games with high TPS and low costs. But what’s the reality? Projects like Star Atlas and Stepn, although once trending and gaining huge hype, are now in a severe decline. After peaking in 2021, the entire GameFi sector has basically been stagnant.

What’s the problem? The Play-to-Earn model that underpins this industry turns out to be unsustainable. People come for the incentive tokens, not because the game is good or fun. When rewards decrease or tokens devalue, they leave immediately. There’s no stickiness, no loyal community. Good games need engaging gameplay and interesting content, not just earning mechanics.

And do you know what’s most ironic? Massive venture capital investments in this sector. Andreessen Horowitz, Framework Ventures, Animoca Brands—they all poured tens of billions of dollars. But the returns? Far below expectations. This isn’t just financial loss; it’s a signal that this business model is fundamentally broken.

Some projects are starting to realize this. Mythical Games and Gunzilla Games are now pivoting their strategies—they’re downplaying blockchain elements, making them optional features instead of core mechanisms. Their focus now is on user experience and broader market adoption. This might be a more realistic path, but it also means that blockchain gaming as the original vision is basically dead.

What’s interesting is that if you look at the fallen atlas from the blockchain gaming hype cycle, it’s a true crash landing. From being considered the future of gaming to a struggling niche. Maybe this is a lesson for the industry—technology is important, but it can’t replace good game design and sustainable business models.