93% of Web3 Gaming Projects Are Now ‘Effectively Dead,’ Including Hamster Kombat

A recent study by crypto market-maker Caladan highlights that 93% of Web3 gaming projects are effectively dead, following the investment of approximately $12 billion since 2020. The report attributes this collapse to structural failures, such as projects launching tokens before games were built and relying on unsustainable play-to-earn models that required constant new buyers. Notable examples of decline include Hamster Kombat, which saw its user base drop from 300 million to 12 million in six months, and Axie Infinity. While venture capital in the sector has plummeted, Caladan notes that a small group of survivors focusing on actual game development, such as Gunzilla Games' Off the Grid, may offer a path forward for the industry.

(Source：BeInCrypto)