Web3 Gaming Wipes Out: 90% of Games Fail to Deliver

The Web3 gaming space has been hit hard in recent years, with many of its top players trading at significantly lower prices than their peaks. According to data from Caladan, over 90% of Web3 games can be considered failed, and more than 300 have shut down since the beginning of 2026.

One such game is Illuvium, which was touted as having console-grade graphics in 2021 but has now seen its token price plummet to a mere $4.06, with an all-time low of 99.8% below its high. The team behind the game has even cut salaries to try and stay afloat.

Other notable games that have struggled include Axie Infinity, which saw its daily user count drop from 2.7 million to just 5,500, and The Sandbox, which was hit by an incident on its bridge in August.