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

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

In addition, 63% of Web3 venture capital funding in 2022 went to the gaming sector, but that figure has dropped 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.

GAFI0.36%
RWA-0.9%
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