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<a href="https://x.com/calilyliu" rel="noopener noreferrer nofollow">Lily Liu</a>, President of the Solana Foundation, declared on March 20 that blockchain gaming is finished. Her exact words, posted on X in response to news that Meta was shutting down its metaverse division after spending $80 billion: "Also, gaming on a blockchain is not coming back."
It wasn't a random hot take from some minor voice. It came from the leader of one of crypto's biggest ecosystems, one that had heavily promoted gaming as a core use case. And she wasn't joking, even if her next move was.
<h2 id="span-span-strong-why-did-she-update-her-bio-to-head-of-gaming-strong-span-span">Why Did She Update Her Bio to "Head of Gaming"?</h2>
Shortly after the post, Liu changed her X bio to include "head of gaming&nbsp;<a href="https://x.com/solanafndn" rel="noopener noreferrer nofollow">@solanafndn</a>," a title that does not appear on her LinkedIn or any official Solana Foundation listings. The official&nbsp;<a href="https://x.com/solanagaming" rel="noopener noreferrer nofollow">@solanagaming</a> account played along, posting a congratulatory message. Solana Foundation Chief Product Officer Vibhu then published a mock crisis-communications release, calling her statement "factually correct and extremely based" while noting it had caused "irreparable harm" to the gaming ecosystem. As punishment, he said, Liu was being forced to play every game on Solana.
The bit landed, but the message underneath it was serious. This wasn't even Liu's first shot at the sector. Back in&nbsp;<a href="https://x.com/calilyliu/status/2019404173012328815" rel="noopener noreferrer nofollow">February 2026</a>, she called past efforts to bring gaming to blockchain "intellectually lazy misadventures" and stated that blockchains "have always been and always will be tech for finance."
<h2 id="span-span-strong-what-do-the-numbers-actually-show-strong-span-span">What Do the Numbers Actually Show?</h2>
The data backs Liu up, at least when it comes to the play-to-earn (P2E) model that defined the 2021 hype cycle.
<h3 id="span-span-strong-funding-collapsed-strong-span-span">Funding collapsed</h3>
Annual investment in blockchain gaming fell to just $293 million in 2025, according to the Blockchain Game Alliance's State of the Industry Report. That is down from over $10 billion in 2022 and roughly $4 billion in 2021. Only 53% of 2025 funding even went to actual games. The rest went to infrastructure. Dozens of studios shut down throughout the year, including projects like Nyan Heroes, Ember Sword, and Pirate Nation.
<h3 id="span-span-strong-users-stalled-strong-span-span">Users stalled</h3>
DappRadar tracked 4.66 million daily unique active wallets (dUAW) across blockchain gaming in Q3 2025, a 4.4% drop from the prior quarter and well below the late-2024 peak of roughly 7.4 million. Gaming still accounted for about 20% to 28% of all dApp activity, but absolute numbers were stagnant or shrinking.
<h3 id="span-span-strong-tokens-got-destroyed-strong-span-span">Tokens got destroyed</h3>
The crypto gaming sector's total market cap has plunged to around $4.5 billion, down from a 2022 high of $35 billion. The damage at the individual token level is brutal. Axie Infinity's $AXS token trades near $1.10, down over 99% from its all-time high of roughly $165. $GALA sits at $0.0032 with a market cap of about $150 million. $SAND and $MANA are both down more than 95% from their peaks. The BGA report noted that 80% to 93% of blockchain gaming startups have shut down since 2021.
<h2 id="span-span-strong-is-anyone-pushing-back-strong-span-span">Is Anyone Pushing Back?</h2>
Plenty of voices disagreed with Liu. Solana co-founder&nbsp;<a href="https://x.com/toly" rel="noopener noreferrer nofollow">Anatoly Yakovenko</a> took a lighter approach, calling on developers to "<a href="https://x.com/toly/status/2034967188797628836" rel="noopener noreferrer nofollow">prove her wrong.</a>" Communities on Ronin, Starknet, and TON all argued that gaming is alive and growing in their ecosystems.&nbsp;<a href="https://bsc.news/post/ton-open-network-telegram" rel="noopener noreferrer nofollow">TON</a> in particular continues to host Telegram-based games, with Gamee recently acquired by Nasdaq-listed AlphaTON to push adoption further.
Analyst Nic Carter offered no such optimism. He agreed bluntly, calling P2E "<a href="https://x.com/nic_carter/status/2034991080895103129" rel="noopener noreferrer nofollow">the dumbest thing of all time</a>" and pointing to Axie Infinity's model as a cautionary tale.
Others drew a distinction between old P2E tokenomics and a new generation of "fun-first" games that use blockchain for ownership and transparency rather than farming rewards. Titles like Off the Grid by Gunzilla Games and Mythical Games' mobile integrations with brands like FIFA are built on this hybrid approach.
<h2 id="span-span-strong-what-does-this-mean-for-solana-gaming-strong-span-span">What Does This Mean for Solana Gaming?</h2>
<a href="https://bsc.news/post/solana-blockchain-ecosystem-deep-dive" rel="noopener noreferrer nofollow">Solana</a> still lists 88 live games on its network. The tools and infrastructure remain in place. But when the president of the foundation publicly calls the whole category dead, and her team turns it into a meme rather than damage control, the signal is hard to miss. The old model of blockchain gaming, built on unsustainable token incentives and hype, is not coming back.
Whether something better replaces it is the real question. And right now, neither the funding, the users, nor the token prices suggest an obvious answer.
Sources:
<ul>
 <li><a href="https://www.fxstreet.com/cryptocurrencies/news/solana-foundation-president-lily-liu-sparks-debate-over-relevance-of-web3-gaming-202603210014" rel="noopener noreferrer nofollow">FXStreet</a> Coverage of Liu's statement, community reaction, and gaming sector market cap data</li>
 <li><a href="https://dappradar.com/blog/state-of-blockchain-gaming-q3-2025" rel="noopener noreferrer nofollow">DappRadar / BGA</a> Q3 2025 State of Blockchain Gaming report with funding and dUAW data</li>
 <li><a href="https://playtoearn.com/news/bga-2025-state-of-the-industry-report-shows-web3-gaming-moving-beyond-the-hype" rel="noopener noreferrer nofollow">PlayToEarn</a> BGA 2025 annual report findings including the $293 million funding figure and studio closures</li>
 <li><a href="https://www.coingecko.com/en/coins/axie-infinity" rel="noopener noreferrer nofollow">CoinGecko</a> Live AXS price data</li>
 <li><a href="https://www.cryptopolitan.com/solana-foundation-president-lily-liu-gaming-on-a-blockchain-is-not-coming-back/" rel="noopener noreferrer nofollow">Cryptopolitan</a> Liu's original statement context and Solana's 88 live games</li>
</ul>

Blockchain Gaming is Dead Proclaims Solana Foundation President

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