The rise of blockchain games in the summer of 2021, coupled with the success of Play-to-Earn (P2E) models, has propelled GameFi into one of the most talked-about sectors. According to dappradar, in October, gaming-related active wallets accounted for 55% of the total in the blockchain industry.
Recently, GameFi has continued to gain momentum, supported by concepts like the metaverse and Web3.0. The total market cap of GameFi tokens surpassed $25 billion, reaching an all-time high. Data from OKX shows that top GameFi project tokens, such as AXS, ENJ, and MANA, have seen significant price increases in recent months.
Simultaneously, numerous gaming projects have attracted substantial capital. Reports indicate that investment interest in blockchain games has surged, with nearly $3 billion invested in gaming, virtual worlds, and NFT-related projects in 2021 alone.
So, what exactly is GameFi? Why is it worth attention? How can users participate and earn while playing? This article will answer these questions in detail.
Understanding GameFi
GameFi isn't a newly coined term. The concept was first introduced in late 2019 by Mary Ma, MixMarvel's Chief Strategy Officer, during the Wuzhen Summit. GameFi, short for Game Finance, refers to the gamification of decentralized finance (DeFi) products. It integrates DeFi rules into gameplay while turning in-game assets into NFT-based derivatives.
A defining feature of GameFi is that users' assets become tools or equipment within DeFi games, and in return, players earn rewards or profits through gameplay.
Similar concepts like NFTFi emerged earlier, with projects like MEME introducing NFTs into liquidity mining, sparking a DeFi frenzy. However, the simplistic "card-drawing" mechanics lacked depth, leading to NFTFi's short-lived popularity. Today, GameFi combines DeFi, NFTs, and gaming—DeFi remains its core, NFTs enable decentralization, and gaming serves as its interactive layer.
Most current DeFi games fall into categories like role-playing, virtual spaces, battle simulations, or multiplayer construction. Compared to traditional liquidity mining, GameFi offers enhanced interactivity, immersion, and fun. For instance, many games use NFT pets for breeding, NFT gear for skill upgrades, or staking NFTs for rewards. Some even feature player-versus-player (PVP) modes, allowing users to earn while gaming.
The revolutionary aspect of GameFi lies in its Play-to-Earn (P2E) model. Unlike traditional games that require deposits or offer free-to-play options, P2E lets players monetize their in-game achievements—whether through tokens, gear, or NFTs—by selling them in marketplaces.
Current Landscape of GameFi Projects
Data from playtoearn highlights 659 GameFi projects across blockchains like Ethereum, Solana, BSC, Flow, and others. These span genres such as turn-based strategy, sandbox, card games, RPGs, and social farming. Notable examples include Axie Infinity, The Sandbox, Decentraland, and Gods Unchained.
GameFi projects generally follow two models:
- Gamified Liquidity Mining: Users stake tokens or NFTs to start playing.
- Full-Game Mining: Players engage in immersive gameplay, earning tradable NFTs or tokens.
Top blockchain games as of November 2021 include Splinterlands, Alien Worlds, and Axie Infinity. While some require upfront investments (e.g., buying NFTs), others are free-to-play.
How Can Users Participate?
GameFi merges gaming with DeFi, creating new opportunities for profit. Here’s how to get involved:
1. Play-to-Earn GameFi Games
Users can dive into GameFi projects, earning rewards through gameplay. For example, Axie Infinity requires:
- Installing the Ronin Wallet.
- Purchasing ETH and transferring it to your wallet.
- Buying Axie pets (NFTs) to start playing.
👉 Step-by-step guide to Axie Infinity
2. Invest in GameFi Tokens
Many projects issue native tokens for in-game use. Platforms like OKX list top GameFi assets, but always research before investing.
Why GameFi is Thriving
GameFi’s success stems from:
- DeFi-GameFi Synergy: DeFi’s maturity fuels GameFi innovation, and vice versa.
- Scalable Blockchains: Solutions like Ronin (Axie’s sidechain) reduce fees and improve speed.
- P2E Popularity: Players becoming earners is a paradigm shift.
Additional drivers include gaming guilds (e.g., YGG), platforms like Gala Games, and growing institutional interest.
FAQs
1. What’s the difference between GameFi and traditional gaming?
GameFi integrates blockchain, letting players own and trade in-game assets, unlike centralized traditional games.
2. Do all GameFi projects require upfront investment?
No. While some need NFTs/tokens to start, others are free-to-play.
3. How do I choose a GameFi project to invest in?
Research the team, tokenomics, and community. Platforms like OKX curate reputable projects.
4. Can I earn passive income with GameFi?
Yes, via staking NFTs or tokens, or renting out in-game assets.
In summary, GameFi blends finance, fun, and ownership, making it a standout trend in blockchain. With its momentum, now’s the time to explore—whether as a player or investor.