Why has GameFi hype died down?

[Lilybasil]

GameFi, which is a combination of gaming and finance, has recently seen its hype die down, in my opinion. I recall 2021/2022 when the sector grew by 2000%, demonstrating rapid development, and we were all excited about what was to come.

We've also seen some resurgence over the last couple of months with projects like Portal, BIGTIME, Pixel, Pirate, and the recently discovered Counter Fire trying to rediscover their form or revive the trend. However, this has been slow to achieve. Could it be that their tokenomics aren't sustainable, users aren't interested, or that the games themselves are boring? What do you think could be the cause?

[el kaka22]

The main reason was lack of interest. The projects were there, a lot of people made projects, but the user count to keep it going wasn't there for majority of them. If we consider stuff like Axie Infinity as gamefi, then we can say that there was just one of them which made some big user count, but even that had a trouble keeping it and dropped, the volume has to be kept going to make it work.

Think about it this way, some people will make money and sell it, so in order to keep the project going there needs to be people who constantly end up doing something to make this work.

This is why it is not that easy to make this work at all, we need to consider what could be good to keep going. This is why it is not an easy thing to do. You can't make it change anytime soon, it is not that easy, we need to consider how this is a very wrong time to make this work as well so we should avoid making big moves. This is why I believe that it will not be an easy thing to do.

[AbuBhakar]

However, this has been slow to achieve. Could it be that their tokenomics aren't sustainable, users aren't interested, or that the games themselves are boring? What do you think could be the cause?

Because all of them provide half baked games since it was developed from scratch by developers that recently assembled for the investment purposes only. Gamefi games is still subpar if you will compare it on the regular games that you can play on game consoles like PS, Xbox and Nintendo.

Gamefi is just became popular due to the feature that gives potential earning however most of this project doesn’t provide profit anymore when played that’s why there’s no interest anymore on this project. The only this project to pay is for user to purchase their tokens.

[o48o]

GameFi, which is a combination of gaming and finance, has recently seen its hype die down, in my opinion. I recall 2021/2022 when the sector grew by 2000%, demonstrating rapid development, and we were all excited about what was to come.

We've also seen some resurgence over the last couple of months with projects like Portal, BIGTIME, Pixel, Pirate, and the recently discovered Counter Fire trying to rediscover their form or revive the trend. However, this has been slow to achieve. Could it be that their tokenomics aren't sustainable, users aren't interested, or that the games themselves are boring? What do you think could be the cause?

Hype and trends come and go, it's nothing to do with the specific genre. Once in the while they will pop up and same arguments about it changing the world again are heard by new people who get hyped and buy the whole sector up. They will come and go, even bad ideas are coming back over and over again.

GameFi is just one of the many, just like Decentralized gambling, market places, tokenized synthetics, AI, RWA, DeFi, memes, nodes, staking, NFTs, some specific new ecosystem, decentralized social media, RegFI, Sports, Metaverse, Yield farming, Politcal tokens, decentrallized Health industry, ZK, DAOs, Computing, storage, commercial, P2E, passive income, rebase(which was the stupidest idea ever), exchange tokens, wallet tokens, casino tokens, fan tokens, scaling, music, arts, tickets, file sharing, launchpads, Presales (and everything related to that) and freaking decentralized logistic infrastructure.

They shouldn't and many of them are just nothingburgers, but i made my peace with the fact that they will trend and dump over and over again. So GameFI will come again. It might come with a different name and slighly different angle, and i don't know if that's a good or bad thing, but it's going to pump & dump as well, like it did last time. Secret to the success is not leaving to hold the bag next time.

[Dave1]

We've also seen some resurgence over the last couple of months with projects like Portal, BIGTIME, Pixel, Pirate, and the recently discovered Counter Fire trying to rediscover their form or revive the trend. However, this has been slow to achieve. Could it be that their tokenomics aren't sustainable, users aren't interested, or that the games themselves are boring? What do you think could be the cause?

I think one factor as well is that the market has been saturated already, and if that happens, crypto enthusiast will have this kind of fatigue with all the new GameFi coming up and so it was not that really sustainable.

And we have seen precedence already, historically, from IEO to IDO to whatever hype in every cycle, we see that it will die down and there will be the next hype. Right now it's the Ton over applications, everyone was developing on top of it, like games and gambling platform. GameFi, might not disappear but I do not think that it will become as hot as it used to be.

[nelson4lov]

Aside the incentives that some of these games offered to users, there was zero interest for users to keep coming back after the incentives were no longer available. Some of these games have very boring storyline and lore. For instance, Heroes of Mavia is at least a 100% copycat of the popular web2 games - Clash of clans and Boom beach. They only did a few tweaks here and there and slap a token to it.  Axiel infinity has some BS token mechanism that didn't the flaws that DeFi Liquidity mining and farming had and that is the fact that if you give tokens rewards, it dilutes the price even further causing a downward spiral dumps as gamers will just sell on the open market every time.

[libert19]

I'm playing this gamefi game called "Spellborne" religiously, to tell you the truth the game is repetitive; the only reason I play is because they have confirmed airdrop. I'm sure reason to play is same with other users.

Without incentives there is no reason to play, hence I feel they die down fast, and add the fact that incentivization that usually comes with native tokens is prone to outside market influences, bear market strikes and people no longer find these game worth their time and they leave.

[asriloni]

GameFi, which is a combination of gaming and finance, has recently seen its hype die down, in my opinion. I recall 2021/2022 when the sector grew by 2000%, demonstrating rapid development, and we were all excited about what was to come.

We've also seen some resurgence over the last couple of months with projects like Portal, BIGTIME, Pixel, Pirate, and the recently discovered Counter Fire trying to rediscover their form or revive the trend. However, this has been slow to achieve. Could it be that their tokenomics aren't sustainable, users aren't interested, or that the games themselves are boring? What do you think could be the cause?

It could be all of those factors. And here are my explanations.

1. Low visual graphic, boring gameplay. - From what i have seen, the majority of crypto games are rarely have good graphics. we're at 2024. People know Unreal Engine 5 well. But, crypto game devs are using PS2 graphics for their games.

2. Poor tokenomics - Majority of crypto gaming developers have garbage tokenomics. Their in-game tokens have unlimited supply, which makes the in-game inflation become uncontrolled.

3. Non-profitable gameconomic - Play to earn is not giving you sustainable income now. Also, the majority of people invested during 21/22 have been losing their money due to inflation.

[libert19]

1. Low visual graphic, boring gameplay. - From what i have seen, the majority of crypto games are rarely have good graphics. we're at 2024. People know Unreal Engine 5 well. But, crypto game devs are using PS2 graphics for their games.

Most I have come across have 2D graphics, GTA 2 comes to the mind if I were to compare and I like to think when these crypto games see revolution like how mainstream video games saw in early 2000s then they may have some chance.

If some already established aaa title adopts crypto in their game, that'd be just as good. Example being, you can manage your in-game video game inventory on blockchain, trade with other players as how nfts get traded.

[Wexnident]

~

It got hyped because it was something new, and a couple of games that were initially released boomed since there were a LOT of projects that gave people rewards that could be translated/sold for irl money. Then the devs failed to manage the economy (and I don't blame them, it's pretty hard to balance it when it's influenced by a massive amount of bots that they can't stop lol) and it just spiraled down from there. Then again even if they did fix it, subsequent games never really had the appeal modern games had, unfortunately. Even adding strategic elements has its limits imo, especially if you want a LOT of people to play it.

[hugeblack]

GameFi hype happened with the end of the lockdown period where everyone was at home and there was more time to do more things but with the economic developments and the increasing possibility of recession and things like memecoin hype, AI hype SOL hype all of which will make investing in GameFi less compared to the past.

[sunsilk]

For those that are not familiar with gamefi and how it went before, it was crazy hype. And so,

Gamefi = Play-to-earn games.

Let's just say that gamefi is another form of the trend that we've got like in ICO. Basically, trends like that don't really last and that's why if someone is able to take advantage of a current hype and made a lot of money.

Reinvest it to something better like bitcoin that will always be at the top of the game of this market.

[Crypt0Gore]

GameFi, which is a combination of gaming and finance, has recently seen its hype die down, in my opinion. I recall 2021/2022 when the sector grew by 2000%, demonstrating rapid development, and we were all excited about what was to come.

We've also seen some resurgence over the last couple of months with projects like Portal, BIGTIME, Pixel, Pirate, and the recently discovered Counter Fire trying to rediscover their form or revive the trend. However, this has been slow to achieve. Could it be that their tokenomics aren't sustainable, users aren't interested, or that the games themselves are boring? What do you think could be the cause?

I could remember when axie came out in 2020, this same look like no lack of interest are filling the air, until when axie brings billions into its market cap.

We are in a bear market, the reason why we saw that pump was because of the rumour that web3 games are going mainstream, it was not a fade.

Later zilliqa introduced their gaming consoles, the thing is, behind the close door gaming is growing very big, don't listen to people saying there are lack of interest.

Sony PlayStation already introduced their layer 2 project called Soniuem, let people sleep on this, they will be shocked very soon, gaming will grow far bigger than anything else.

[crwth]

There could be a couple of factors that contribute to this. It’s going to be the attraction, loyalty, and continuous playing of the members. It’s not always going to be about tokenomics, but it contributes a big part of the supply and demand.

Are the projects you mentioned the only ones you think have gone down?

[MAAManda]

Could it be that their tokenomics aren't sustainable, users aren't interested, or that the games themselves are boring? What do you think could be the cause?

All your guesses are correct, there's not a single miss . Starting from tokenomics which can't be sustainable, look at how Axie Infinity used to be and compare it to now, it's hard to realize that the P2E which was once the most played is now no longer attractive because of the decrease in prizes, it's a kind of ponzi, whoever joins first, is the one who benefits. This is also followed by boring, in contrast to conventional games that don't involve crypto, P2E in crypto is boring, there's no fun there, most players only play to earn money, as the name.

[doomloop]

The main reason was lack of interest.

Maybe now because their hype have died down already but before, many people are interested on them even though many are not genuine but only got influenced by the hype. This is the reason why we are always advised to not join a project that are only based on hype because we don't know their duration and they can suddenly died out causing us to lose our money instantly.

The projects were there, a lot of people made projects, but the user count to keep it going wasn't there for majority of them.

Crypto is a business and like any other business, there will always be competitors, so business owners should try their best to improve their projects in order to maintain their momentum. The problem in cryptos is that devs are greedy and only after the short-term profit. They don't have long-term commitments. IDK why but maybe they think it's a hassle. They didn't realize that they can still earn much better if they do.

[SUPERSAIAN]

Actually, there are many reasons, current projects are making developments and implementations to combine gaming and finance. Now, since there is less interest, there are also fewer investments in the sector. I think that the sector is still new and the GameFi sector will attract more users, players, in the future. A good ground is needed for this, and it actually started on the date you mentioned.

[OgNasty]

It seems like people never really got into GameFi. From what I can tell looking at different projects, it seems like they were running on investor funds and trying to pay people to use their inferior games, which led to ultimately nothing. I think gaming and blockchains are a match made in heaven, but I think Microsoft will need to lead the way.

[TastyChillySauce00]

Their economy always unsustainable one, the user who've played the game before TGE never coming back because the main reason they play in the first place because they want to receive airdrop from TGE.
entire concept of gamefi is flawed in my opinion. Basically from day 1, the game maker incentivizing people to play game so that they can gain some players and inflate the active player counts, but these people will flock as long as there's reward, take the reward aspect and they'll be gone in 1 second.


it reminds me of one of the most successful gamefi which is axie infinity, at early stage it was so popular everyone is making money, few years passed and the game showing signs of dying, the characters NFT dumped in price too.