Despite over $15 billion in capital being invested into the Web3 game market, an analysis suggests that the industry itself has virtually collapsed. CoinDesk reported, "According to crypto trading firm Caladan, 90% of all GameFi projects have failed. The token price of each project has fallen by approximately 95% from its peak, and investment has also plummeted. The Play-to-Earn (P2E) model collapsed with a slowdown in new user inflow, and users of major projects like Axie Infinity also sharply declined. Investment funds subsequently shifted to AI, RWA, and L2 infrastructure, and over 300 blockchain games have ceased operations."
