Web3 Gaming Sector Faces Decline as Capital Shifts to AI and Tokenization

Caladan reports that approximately 93% of Web3 gaming projects have become inactive after the sector expended up to $15 billion. According to NS3.AI, token values have plummeted to about 95% below their 2022 peaks, and studio funding is projected to decrease by 93% by 2025. The report highlights that over 300 blockchain games have ceased operations as investment capital shifts towards AI, real-world asset tokenization, and infrastructure development.