Analysis: About 93% of GameFi projects fail, with funding shifting towards AI, RWA, and other fields

According to CoinDesk, data disclosed by the market-making company Caladan shows that about 93% of GameFi projects are now nearly dead, with token values down 95% from their peak in 2022, and game studio funding plummeting by 93% by 2025. Investment in Web3 games has almost completely dried up, with funds shifting towards AI, real-world assets, and Layer-2 infrastructure, leading to a collapse in the gaming industry. Even Animoca Brands, the most active investor in the Web3 space, has reduced its gaming business to about 25% of its portfolio and has begun to shift towards areas like stablecoins.

Additionally, in 2022, 63% of Web3 venture capital funding went to the gaming sector, but by 2025, this proportion has dropped to single digits, with over 300 games announcing shutdowns, turning Web3 gaming into a cautionary tale about chasing speculation while neglecting product-market fit.