Gate News message, April 23 — According to a Caladan report cited by CoinDesk, Web3 gaming has burned up to $15 billion in pursuit of token-driven growth but failed to gain player adoption. Approximately 93% of GameFi projects have effectively failed, with token values down roughly 95% from 2022 peaks. Gaming funding to studios contracted 93% in 2025, and over 300 blockchain games have shut down.
Notable casualties include Pixelmon, which raised $70 million in an NFT sale in 2022 but has yet to release a public game four years later; Ember Sword, which burned $18 million over seven years of development before shutting down in May 2025 without refunds; and Gala Games, which faces litigation over allegations that co-founders misappropriated $130 million in tokens. Axie Infinity, once a flagship title, saw daily active users plummet from a peak of roughly 2.7 million to approximately 5,500. Hamster Kombat lost 96% of its users within six months of launch, and gaming guild token YGG declined 99.6% from its November 2021 peak.
Capital allocation tells a stark story: gaming represented 62.5% of Web3 venture funding in 2022 but fell to single digits by 2025, with capital redirected toward AI, real-world asset tokenization, and Layer 2 infrastructure. Even Animoca Brands, the sector’s most active supporter, reduced gaming to roughly 25% of its portfolio, pivoting toward stablecoins, RWA, and AI. Research from Coda Labs found that only 12% of players had tried crypto games even at the height of the hype.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Crypto Adoption Slows in Q1 2026 as Developed Markets Show Sharper Decline
Gate News message, April 23 — According to TRM Labs' Q1 2026 research report, global cryptocurrency retail adoption showed signs of contraction, with total global retail volume reaching $979 billion, down 11% from the same period in 2025. The crypto market has now experienced two consecutive
GateNews1h ago
DeFi Researchers Propose Credit Risk Quantification Framework for Lending Vaults
Gate News message, April 23 — Researchers including Anastasiia have published a paper titled "Vault as a credit instrument," proposing a credit risk quantification framework for DeFi lending vaults. The research highlights that while DeFi lending vaults manage real user deposits, they lack unified c
GateNews1h ago
JPMorgan: DeFi hackers are increasingly common, and interest in compression mechanisms to address TVL stagnation is drawing capital into USDT
JPMorgan Chase’s report believes that DeFi continues to face ongoing vulnerabilities, cross-chain bridge and oracle attacks are frequent, causing TVL to stagnate and weakening institutional investors’ willingness to invest, with capital shifting to USDT that is traceable and can be frozen. The KelpDAO and Rhea Finance attacks reveal risk-management risks; centralized stablecoins and custodial solutions are more favored. In the long run, improving this will require going beyond insurance and governance. DeFi will not be able to return to the 2021 era of high TVL, and stablecoins will become even more concentrated.
ChainNewsAbmedia2h ago
JPMorgan: DeFi Exploits and Stagnant TVL Continue to Limit Institutional Adoption
Gate News message, April 23 — JPMorgan analysts say persistent decentralized finance exploits and weak growth continue to limit institutional interest in the sector. The recent Kelp DAO attack wiped approximately $20 billion from DeFi's total value locked (TVL) in just days, according to a report le
GateNews4h ago
AVAX One Reports Q1 2026 Results: Holds 14M AVAX, Revenue Doubles to $2.4M
Gate News message, April 23 — AVAX One, a Nasdaq-listed cryptocurrency treasury company, released preliminary Q1 2026 results, with quarterly revenue doubling sequentially to approximately $2.4 million, driven by Avalanche staking rewards and Bitcoin mining operations growth.
The company holds appr
GateNews4h ago
Macro Recovery Drives Risk Asset Inflows; Crypto Market Shows Divergence Between Mainstream and Altcoins
Global risk appetite rose on easing Middle East tensions, lower energy prices, and strong institutional support, pushing equities to new highs; gold held gains while crypto and ETFs posted modest moves.
Global risk sentiment improved as tensions eased and energy prices fell, with equities at highs, gold firm, and crypto modestly higher; regulatory steps included France backing euro stablecoins and Circle's USDC Bridge.
GateNews04-22 05:38
