Web3 games are the worst performing category in Q2

In Q2 2024, Web3 gaming, known as GameFi, emerged as the worst-performing cryptocurrency category, according to a recent analysis. In contrast, memecoins stood out, leading the performance rankings with positive relative strength.

Data from crypto intelligence tracker DYOR reveals that memecoins were the only category to show positive relative strength, while most other categories, including Web3 games, performed negatively.

Among the worst performers in the GameFi sector are Mythos (MYTH), Echelon Prime (PRIME) and Yield Guild Games (YGG) tokens, all of which rank among the top 300 cryptocurrencies by market cap.

GameFi tokens, which include MYTH, PRIME and YGG, have all seen significant declines over the past seven days. MYTH, ranked 260th by market cap, has fallen by over 20%, while PRIME, ranked 187th, has seen a 17% drop. YGG, meanwhile, has lost nearly 10% of its value, according to data from CoinGecko.

Web3 games on the decline

Hitesh Malviya, a crypto analyst known on Twitter by the handle @hmalviya9, highlighted that despite the poor performance of Web3 games, other categories of cryptocurrencies had better results.

Memecoins, for example, led by the DEGEN token, have seen gains of over 1,000% for their holders. In addition, blockchain service infrastructure tokens, Liquid Staking Tokens (LSTs), and layer-1 tokens have also shown positive trends at the start of Q3.

The drop in performance of Web3 games can be attributed to several factors, including market saturation and a lack of significant innovation in the short term.

Analysts suggest that to regain lost ground, the GameFi sector will need to focus on robust technological developments and more effective user engagement strategies.

On the other hand, current trends indicate that memecoins and blockchain infrastructure services will continue to be areas of interest for investors in the coming quarter.