Blockchain Express

If Solana Foundation President Lily Liu is correct in her assessment that blockchain gaming is effectively dead, then the billions of dollars invested in the sector could ultimately be considered one of the industry’s most significant misallocations of capital.
Liu’s remarks were sparked by a Polymarket post earlier in the week, which suggested that Mark Zuckerberg’s Meta may be scaling back its metaverse ambitions after investing approximately $80 billion into a virtual ecosystem that has struggled to achieve meaningful user adoption.
“Also, gaming on a blockchain is not coming back,” Liu stated on Friday.
Although Meta’s metaverse vision did not explicitly center around blockchain or cryptocurrency, its broader strategy—heavily promoted by Zuckerberg, including the company’s rebranding to “Meta”—shared several conceptual similarities with web3 and blockchain-based gaming ecosystems.
Blockchain gaming was widely viewed as a potential catalyst for unlocking the promise of web3 and the metaverse, enabling users to truly own and trade in-game digital assets across decentralized networks. In essence, blockchain technology was expected to serve as the foundation for open, interoperable virtual worlds.
However, major networks such as Bitcoin and Ethereum were often criticized for being too slow and expensive for gaming applications. In contrast, Solana emerged as a promising alternative, offering high throughput and low transaction costs suitable for real-time gameplay and frequent in-game interactions.
Liu’s statement drew mixed reactions from the community. Some questioned whether her comments were intended literally. One X (Twitter) user, @Tee9ee—a self-described game designer—remarked, “If by gaming you mean play-to-earn ‘games’ built around questionable tokenomics, then perhaps they shouldn’t return. However, vague statements like this risk undermining confidence among developers and gaming communities. Solana remains a strong platform for builders.”
Notably, several high-profile blockchain gaming projects have been built on Solana, including Star Atlas, an ambitious space-based metaverse project, and STEPN, which initially demonstrated strong user growth.
Despite early optimism, blockchain gaming has faced significant criticism for failing to deliver engaging gameplay and immersive experiences. Instead, many projects relied heavily on token-based incentive models that effectively paid users to participate, rather than focusing on sustainable game design.
By most industry metrics, the sector has underperformed expectations. Despite billions of dollars in investment from firms such as Andreessen Horowitz (a16z), Framework Ventures, and Animoca Brands, the value of GameFi tokens has significantly declined since the 2021 bull market. During that period, play-to-earn titles like Axie Infinity gained global attention but ultimately struggled to sustain long-term engagement and economic stability.

Bitcoin slipped under $72,000 on Wednesday, dropping roughly 4.5% to $71,292 by the afternoon. Earlier, it had surged as high as $74,798 before pulling back, as traders responded to the Federal Reserve’s call to hold rates steady and maintain just one quarter-point cut for the year.
That’s significant, since it halted bitcoin’s climb after the token touched $73,949 on Tuesday. Oil, inflation, and U.S. rate moves are still setting the pace for markets—even after the Securities and Exchange Commission finally released long-anticipated guidance on which digital assets count as securities. Reuters
Ether slipped 6.2% to $2,191, while XRP shed 4.6%. Shares tied to crypto didn’t hold up either—Coinbase dropped 2.3%, and Strategy finished down by 5.7%.
The Fed held its policy rate steady at 3.50%-3.75%, while bumping its year-end inflation projection up to 2.7% from the 2.4% estimate made in December. Brent crude touched $107.51 a barrel, following a strike on Iran’s Pars gas field. U.S. producer prices, meanwhile, surged 0.7% in February—tightening financial conditions in markets.
Lindsay Rosner from Goldman Sachs Asset Management expects the central bank to stick with a “wait-and-see” approach. Brian Jacobsen at Annex Wealth Management pointed out that the Fed’s projected inflation path “could be optimistic.” Both remarks highlight how investors are watching energy prices and growth prospects, not just the latest crypto headlines.
The SEC on Tuesday clarified that federal securities laws kick in only for digital securities. Chair Paul Atkins floated the idea of a safe harbor—essentially, a temporary exemption—to help crypto companies navigate capital-raising. The Commodity Futures Trading Commission echoed that reading.
Citi on Tuesday slashed its 12-month bitcoin price target to $112,000, down from the previous $143,000, blaming the slowdown in U.S. market-structure legislation. The much-anticipated bill, which would clarify crypto regulation, is losing momentum as a near-term driver for fresh institutional interest, according to the bank. Citi strategist Alex Saunders said the chances for legislation this year are fading fast, calling the “window of opportunity” increasingly tight. With that, Citi sees bitcoin stuck near $70,000, moving sideways as traders keep an eye on political headlines. Year to date, bitcoin remains roughly 15% lower.
The risks are clear enough. Should the dollar strengthen and energy prices stay elevated, tighter financial conditions could weigh on bitcoin, Citi warned. In a recession scenario, the bank sees bitcoin dropping to $58,000, despite a far more bullish upper bound.