**Web3 Gaming's grand vision just hit a harsh reality check.** A new Caladan report

reveals its journey

through $BTC market cycles. Remember the 2021-2022 boom.

GameFi felt unstoppable. It captured ~62.5%

of all Web3 VC funding. From 2020 to 2026,

a massive $12-15 billion

flooded into the space. However, now.

Many projects show

minimal user engagement. Average token drawdowns

are a staggering ~95%.

A stark, painful reality. Common patterns emerged.

Tokens and $NFTs sold

before any actual gameplay. Endless "metaverse" roadmaps.

Play to Earn models

depended on constant new users. Years of development.

Still no finished product. This isn't just about $ETH or $SOL.

It's a sector-wide lesson. #Web3Gaming #GameFi #CryptoGaming #Bitcoin #MarketCycles