A report from Arcane Research shows that the active users in the largest Ethereum-based blockchain games have dropped by 96% from November last year.
The study shows that negative activities, including rug pulls have kept gamers at bay. The high gas fees in Ethereum, which is considered a major dApps platform, is also to blame for the decline.
The report shows that the decline in the GameFi can be attributed to the slow momentum in metaverse and NFTs. The team recommends that the short-term solution is for GameFi to increase its avenues of sustainability.
The study also recommends three key factors that need to be addressed in GameFi: the cost of entry, token inflation, and incentivization. A balance in the aspects is recommended.
The market for the play-to-earn game remains robust despite the downturn, with the findings showing that there remain reasons to remain optimistic in the sector.