Solana Foundation Chairman Lily Liu Declares "Blockchain Gaming Is Dead," Total Market Cap Drops 87%

Solana Foundation Chair Lily Liu stated on X that “Blockchain games will never come back,” sparking heated discussion in the GameFi community. The market cap of crypto games has plummeted from a peak of $35 billion in 2022 to $4.5 billion, a decline of 87%.
(Background: Solana Foundation President Lily: What is the biggest narrative of this cycle? What’s next for crypto payments?)
(Additional context: Is GameFi dead? — Counting the seven sins of blockchain gaming)

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• 87% total decline
• Continuous criticism
• Survivors transforming blockchain games

Solana Foundation Chair Lily Liu directly declared the death of the entire blockchain gaming track on X.

“Blockchain games will never come back.”

The trigger for this statement was Meta founder Mark Zuckerberg considering abandoning the metaverse project after investing over $80 billion. Lily Liu was inspired to speak out, expressing disappointment with the overall narrative of “Web3 games changing the world.”

87% Total Decline

Crypto game market cap has fallen from a peak of $35 billion in 2022 to about $4.5 billion today, a drop of nearly 87%. During this period, top firms like Andreessen Horowitz (a16z), Framework Ventures, Animoca Brands, and others invested billions of dollars into the space, but returns have been disappointing.

Solana was once one of the most promising underlying blockchains for gaming, known for high performance, low costs, and support for real-time interaction—seemingly perfect for gaming infrastructure. However, whether it was the once-popular Star Atlas or StepN, none could break through the ceiling of the Play-to-Earn model. Players came to earn money, not just to play, and when token prices fell, users disappeared.

Continuous Criticism

Lily Liu’s comments sparked intense reactions within the Solana ecosystem.

Vibhu Norby, Product Lead at Solana Foundation, issued a “crisis public relations statement,” claiming Liu’s remarks are “factually correct and highly realistic,” and solemnly stated that her comments caused “irreparable damage” to the gaming ecosystem.

The official Solana Gaming account also chimed in, congratulating Liu on being appointed as the “new head of gaming” at the Solana Foundation.

However, Solana co-founder Anatoly Yakovenko’s stance was quite different. Instead of joining the mockery, he challenged developers: “Go prove her wrong.”

Survivors Transforming Blockchain Games

The blockchain gaming track isn’t completely dead; some communities mention projects like the following that are still adjusting their direction and achieving notable results:

• Mythical Games: Gradually reducing on-chain elements, making blockchain features optional rather than core gameplay
• Gunzilla Games: Adopting a similar strategy—focusing on making a good game first, then discussing Web3

Past failures in blockchain gaming stem not from the technology itself but from placing “profit mechanisms” above “the game.” Players (users) want fun games, not blockchain financial projects that are primarily about earning money.