How to Choose Stable Projects in the GameFi World: Tips for Investors
The Web3 industry has a vast variety of fields, each with its own internal economic structure. Areas such as SocialFi, DeFi, CEX, and others have unique trends, attract different types of investors, and feature numerous distinctive characteristics. However, these sectors often develop unevenly: some progress rapidly, while others stagnate or even decline. Today, Coinmooner wants to focus on one of these areas—GameFi.
Recently, experts from ChainPlay conducted an extensive analysis covering over 3,200 GameFiprojects. The study revealed that after rapid growth in 2022, most projects experienced a sharp decline. Specifically, 93% of gaming tokens have lost, on average, 95% of their value from their all-time highs. This collapse highlights the fragility of the sector and its dependence on external factors such as investor interest, market dynamics, and user activity.
One particularly alarming finding is that the average “lifespan” of GameFiprojects is only about four months. By comparison, meme coins, despite their controversial reputation, last an average of one year, while standard digital assets remain relevant for up to three years. Analysts attribute the short lifespan of gaming projects to their instability, lack of audience engagement, and difficulty retaining users. This poses significant risks for both developers and investors.
How Investors Can Adapt to the Changing GameFi Landscape
The study also revealed that 58% of venture investors suffered significant losses from participating in GameFi projects, with some losing as much as 99%. Despite this, interest in the sector has not completely disappeared: in 2024, major investors poured $859 million into GameFi. While this is 13% less than in 2023 and 84% less than the peak of $5.56 billion in 2022, the investments show that many still see potential in this field.
The number of funding rounds has also changed. In 2024, there were 221 funding rounds—44% more than in 2023 but still far below the 358 rounds seen in 2022, during GameFi’s peak interest. Experts link this decline to a more cautious approach by investors, who now focus more on projects' long-term prospects and sustainability.
In conclusion, Coinmooner reminds readers of the importance of security in the Web3 industry. Use advanced protection methods to minimize risks to your finances and personal data. Staying vigilant and managing resources wisely are key principles for successfully navigating the fast-changing world of blockchain technology.
