When blockchain games first burst onto the scene, few projects captured early excitement like Eldarune, a fantasy-themed ecosystem incubated by Seedify.

Based across multiple chains and powered by its native ELDA token, the studio pitched itself as more than just one game.

At its peak, Eldarune boasted hundreds of thousands of players, topped charts during early releases, and built a loyal community across Discord and Telegram.

According to reports , Eldarune raised $1.75 million from ELDA tokens.

Eldarune was a small gaming startup that tried to mix fantasy video games with blockchain technology.

The startup featured four games:

The wind-down

But last week, the studio confirmed what many in its community had feared.

Eldarune is officially shutting down operations. In a statement , the team attributed the closure to "funding challenges" and the "web3 gaming market."

"Unfortunately, we cannot continue operating Eldarune as it stands today. This is not the outcome we had hoped for. We poured our energy and creativity into this universe, and while we couldn’t take it to the finish line, we are proud of the progress we’ve made and grateful to have shared this journey with you."

The studio stressed that while the games themselves will no longer move forward, the ELDA token will not disappear. Instead, it is being transferred to a new, independent company that plans to continue the project’s vision “in a different form.” At the time of the announcement, ELDA was still trading on MEXC before being delisted.

A wider Web3 trend

The Web3 gaming sector has been battered by market downturns and venture funding pullbacks.

In recent months, projects such as Pirate Nation from Proof of Play, Tokyo Beast, Unioverse, and Blast Royale have all shut down, often citing similar financial strains.

Meanwhile, the Web3 gaming market is moving in the opposite direction. Valued at $25.63 billion in 2024, it is projected to climb to $124.74 billion by 2032, fueled by blockchain adoption, NFT integration, and play-to-earn models, according to SNS Insider.

This story was originally reported by TheStreet on Sep 11, 2025, where it first appeared in the Bankruptcy section. Add TheStreet as a Preferred Source by clicking here.