Analysis: Approximately 93% of GameFi projects fail, with funds shifting towards AI, RWA, and other sectors.

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ChainCatcher reports that, according to data disclosed by market-making firm Caladan and as reported by CoinDesk, about 93% of GameFi projects are now nearly dead. Token values have fallen 95% from their 2022 peak, and funding for game studios is also set to plunge 93% by 2025. Investment in Web3 games has almost completely dried up, with capital flowing instead to AI, real-world assets, and Layer-2 infrastructure—driving a collapse in the gaming industry. Even Animoca Brands, one of the most active investors in Web3, has scaled back its gaming business to about 25% of its portfolio and begun shifting toward areas such as stablecoins.

In addition, while 63% of Web3 risk-venture funding in 2022 went into gaming, that figure has fallen to single digits by 2025. More than 300 games have announced shutdowns, turning Web3 gaming into a cautionary tale about chasing speculation while ignoring product-market fit.

GAFI-0.99%
RWA-1.45%
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