After a tumultuous two years, the market cap for GameFi tokens stood at a staggering $27 Billion USD at the start of 2022. Fast forward to 2023, and that amount stands at a much cooler figure of just over $3 Billion USD.
Experienced game developers like Red Pill Company put this down to one simple fact – that these games did not focus on creating sustainable project revenue streams and engaging mechanics for the players. As a result, a project’s revenue streams become non-existent, and the project dies. When there is a significant decline in the crypto space, the benefits become much less attractive for players – and that is what has been seen in the industry this past year.
Simply put, not enough focus has been put on creating mechanics that attract and retain players and diverse and functional revenue streams. Now that the classic P2E games are not earning well, they have become defunct. The P2E market as we know it has died.
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