GameFi user activity continues to plummet – Where is the future of the industry?

Blockchain games have become a bright spot in a down year for the already depleted crypto industry. However, that may not be for long if interest in the field continues to dwindle.

GameFi's active users have been steadily declining since October 2022.  Source: Messari
GameFi’s active users have been steadily declining since October 2022. Source: Messari

The reason that such a negative argument about the future of blockchain games appears is because after the downturn that began in mid-2022 with most data showing GameFi user activity on Ethereum plummeted 96%, then So far, the overall picture of this sector has not been recovered.

According to the latest statistics from Messarithe number of active users for popular blockchain games continues to decline by 30% since October 2022, while the number of new users is down by 34%.

The above result defies all efforts the fact that many seasoned developers have entered the market with ambitions to develop more groundbreaking complex games after the pioneering wave of simple blockchain games. follow a Play to Earn (P2E) model like the Axie Infinity, which became hugely popular during the market’s frenzied bull run in 2021.

However, there doesn’t seem to be a single name that can fill the void left by Axie Inifity, gaining enough traction to revive the industry. Even the unique new blockchain games released are very few besides Dookey Dash – one of the few representatives of the recent NFT game segment developed by Yuga Labs.

Overall, the steep drop in overall market prices and boring NFT trading volumes have taken a toll on the negative sentiment surrounding the GameFi industry. Even so, investment in blockchain gaming and NFT projects remains strong, raking in hundreds of millions of dollars in new venture capital each month.

According to The Block ResearchThis trend continued last month as the blockchain gaming/NFT sector secured the most investment of all crypto categories, outstripping infrastructure and financial services.

Commenting on this issue, Mythical Games CEO John Linden has been relatively optimistic about the future prospects of the industry even though his company has just laid off 10% of its employees due to poor conditions. Difficult market:

“We are starting to see blockchain games attract millions of players, but to be honest we are only in the early stages of this massive growth.”

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