Caladan: 93% of Web3 Gaming Projects Now Dead

Caladan said the Web3 gaming sector is in a broad shakeout, estimating roughly 93% of projects are now effectively dead. Tokens tied to the niche are down an average of about 95% from their 2022 peaks, and studio funding has collapsed roughly 93% from the cycle high.

Why it matters

The capital allocation data is the structural read: gaming captured about 62.5% of Web3 VC funding in 2022 and has since fallen to single digits by 2025. Quarterly funding slid from roughly $1.6 billion at the cycle high to about $18 million, a drop Caladan frames as a near-total exit by allocators rather than a routine drawdown.

Market impact

A 99% drop in funding is the kind of contraction that resets the cohort — survivors will be the studios with real revenue rather than token-incentivised retention. Tokens already reflect most of the pain at -95% from peak, so the marginal signal is whether the surviving 7% of projects can graduate to non-crypto-native distribution before the next cycle.

FAQs

**Q: What percentage of Web3 gaming projects are dead according to Caladan?** A: Caladan estimates roughly 93% of Web3 gaming projects are effectively dead, with sector tokens down about 95% from 2022 peaks.

**Q: How much has Web3 gaming funding fallen?** A: Quarterly funding dropped from about $1.6 billion at the cycle high to roughly $18 million, a decline of about 99%.

**Q: What share of Web3 VC funding went to gaming in 2022 vs 2025?** A: Gaming took about 62.5% of Web3 VC funding in 2022, falling to single-digit percentage by 2025, per Caladan.

**Q: How much are Web3 gaming tokens down from their 2022 peaks?** A: Tokens tied to Web3 gaming projects are down an average of about 95% from their 2022 cycle highs, according to Caladan's analysis.