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 following a report by CoinDesk, approximately 93% of GameFi projects are now nearly dead. Token values have fallen 95% from their peak in 2022, and funding for game studios is also set to plunge 93% by 2025. Investment in Web3 games has nearly completely dried up, with capital shifting to AI, real-world assets, and Layer-2 infrastructure, resulting in 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 investment portfolio and begun pivoting to areas such as stablecoins.

Additionally, in 2022, 63% of Web3 venture capital flowed into the gaming sector, but by 2025 that figure has fallen to single digits. More than 300 games have announced shutdowns, turning Web3 gaming into a cautionary story about chasing speculation while ignoring product-market fit.

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