The (failing) State of GameFi. Why I put @Immutable in the Bear category 🧵 GameFi has been in a bear market since 2021, and $IMX has been one of the brightest examples. - No real adoption - Lack of activity and users - Failed bet on zkEVM - Fundamental flaws Let's break down every single point ⬇️ ➣ No real adoption Immutable X has recently reached a new all-time low, with a TVS of just $30.9 million. The chain has roughly $600,000 in USDC liquidity, basically nothing for a network intended to support game economies. Additionally, it has no natively minted assets; everything is bridged, lacking organic on-chain liquidity. This issue has persisted for a while, prompting the decision to migrate to zkEVM (more on that later). ➣ Lack of activity and users Let the stats speak for themselves: - UAW: ~500 - Daily Transactions: 2-3k - Daily Volume: $15-$20k That's the average stats for a project valued at >$1 billion. Its ecosystem isn't doing any better; its most popular app, @IMVU, has been averaging ~2k UAW over the last 30 days. Another "top" app, @illuviumio, 41 UAW over the same period. Don't get me wrong, I get that it may be normal in a stagnant narrative, but $IMX is a unicorn project... ➣ zkEVM " But Warhol, they pivoted to zkEVM" Say no more, let's analyze Immutable zkEVM metrics: - TVL: $12m - 24h chain fees: $84 - 24h DEX volume: $371k - 60 ecosystem projects Moreover, it has just $650k in natively minted assets, Katana, which is a lot smaller, has $1.7m. - Is zkEVM better than Immutable X? Yes. - Is it a failed bet? Also, yes. It wasn't a breakthrough moment for the chain and ecosystem; it was more of a marketing campaign to prove that the project is still alive and "innovating". ➣ GameFi is fundamentally flawed The macro backdrop is hostile: user activity down, funding collapsed, and hundreds of games shuttered in Q2-2025. The common failure modes are exactly what we’ve seen for years: - Token-led funnels - Bot-exploitable mechanics - Poor long-term retention Investors are leaning towards infrastructure, such as engines, distribution, and tooling, rather than new play-to-earn economies (tells a lot btw). While this isn't specific to Immutable, the platform must meet a high standard to stand out. The onchain data above doesn't show it managed to do that yet.