Roughly half of the investors initially entered the GameFi space for profit, while 89% of GameFi investors succumbed to Crypto Winter 2022 – 62% lost more than 50% of their profits.
GameFi earnings are falling. However, investors believe the poor in-game economy design is the main reason for their losses. In line with this thinking, the survey revealed that in 2022, investors worldwide spent an average of 2.5 hours per day on GameFi, down 43% from last year to 4.4 hours.
Fear of pulling carpets and Ponzi schemes combined with below-average graphics are some of the biggest barriers to investment in new GameFi projects. As a result, 44% of investors believe traditional gaming companies’ involvement could be key to GameFi’s growth.
Also, when it comes to future GameFi projects, 81% of GameFi investors are shifting away from the traditional mindset and prioritizing the fun factor over profit when seeking positive in-game experiences.
Blockchain games and the Metaverse were the ecosystems least affected by the Terra (LUNA) collapse, a DappRadar report confirmed.
Additionally, sustained institutional investment has been seen in both the blockchain games and Metaverse, highlighting that many top companies see strong economic growth potential in both sectors.