Prominent GameFi Coin of 2024
GameFi combines the world of gaming and decentralized finance (DeFi) by integrating financial elements such as cryptocurrencies, NFTs, and blockchain technology into video games, creating an ecosystem where players can earn real value through gaming.
GameFi represents a “revolution” between video games and finance. It is also one of the most popular sectors in the cryptocurrency market. The GameFi or Play-to-Earn (P2E) sector has great potential in bringing new users to the world of web3 and cryptocurrencies. This novel concept goes beyond traditional gaming, offering players not just mere entertainment but also the opportunity to earn financial rewards thanks to underlying blockchain technology. Mainly driven by Gen Z, a tech-savvy younger generation, GameFi offers ROI to players, helping them monetize their time and effort spent on gaming.
The global gaming industry is expected to grow at a CAGR of 4.2% and reach $212 billion by 2026. Meanwhile, the GameFi sector is expected to grow at a CAGR of 21.8% from 2023 to 2028 to surpass a valuation of $614 billion, according to a study by Fortune Business Insights. As of this writing, the GameFi sector has a market capitalization of over $24.52 billion, based on data from CoinMarketCap.
What is GameFi? GameFi is a portmanteau of “gaming” and “finance,” representing a rapidly growing sector. Simply put, it combines the excitement of online gaming with the earning potential of decentralized finance (DeFi) and cryptocurrencies. While in traditional video games, economic benefits usually belong to game developers and platform owners, GameFi introduces a revolutionary model where players can earn financial rewards for in-game activities. This is primarily supported through blockchain technology, non-fungible tokens (NFTs), and cryptocurrencies, creating a decentralized economy within the gaming ecosystem.
In traditional gaming, players are consumers, spending money to buy games or in-game items without any monetary return. In the traditional gaming model, ROI (return on investment) for players is the enjoyment and entertainment, whereas GameFi empowers players by allowing them to earn, trade, and own digital assets with real-world value in a more decentralized and democratized manner. Blockchain technology ensures the transparency and security of transactions. NFTs represent unique digital ownership of in-game assets such as characters, items, or virtual land. These assets can be bought, sold, or traded across different platforms. Cryptocurrencies are used as the primary medium of exchange within these ecosystems, enabling seamless value transfer between players and the gaming environment.
Overall Price Trends of GameFi According to CoinGecko’s research, the price returns of the NFT GameFi market have been volatile, with some projects achieving significant gains alongside projects experiencing substantial losses. For example, Axie Infinity – a leading P2E game at the time of infographic creation, saw its price returns fluctuate between 18,000% and -74% over the past year. However, despite the volatility, the overall trend for the GameFi NFT market is very positive, with the blue-chip index increasing by over 450% since January 2021.
Top Prominent GameFi Projects of 2024 Below is an overview of some of the best GameFi projects that the cryptocurrency market has to offer. We have explored both new projects and selected those with a significant impact on the market based on user base, market performance, and growth potential. However, note that the list below includes not only gaming tokens but also projects providing the necessary infrastructure to support the GameFi industry.
Ronin (RON)
Ronin is an EVM-compatible blockchain specifically designed to meet the unique needs of blockchain gaming, with a particular focus on games with player-owned economies. Developed by Sky Mavis, the team behind the popular crypto game Axie Infinity, Ronin addresses common pain points such as scalability and transaction fees that early P2E projects encountered. Ronin’s approach uses the Proof-of-Authority (PoA) consensus mechanism, emphasizing efficiency and scalability, with plans to transition to a more decentralized Proof-of-Staked-Authority (PoSA) model to enhance network security and user participation. RON is the native token of the Ronin network, playing a central role in the ecosystem, serving as the primary medium for transaction fees and governance.
Beyond Axie Infinity, the Ronin (RON) network supports a variety of P2E games across diverse genres including:
- Pixels: A pixel art building and battle game inspired by Minecraft.
- Zoids Wild Arena: A 3D mecha battle game based on the popular Zoids franchise.
- The Machines Arena: A robot battle game with strategic gameplay and customization options.
- Tribesters: Island of Solas: A social simulation game featuring land ownership and NFT-based pets.
- Civitas: A strategy game where players build and manage their own civilization.
- Axie Classic: The original strategic card game version of Axie Infinity.
- Defenders of Lunacian Land: A tower defense game set in the Axie Infinity universe.
Ronin benefits from strong community and developer support, bolstered by its association with Axie Infinity and parent company Sky Mavis. Sky Mavis provides a suite of tools for game developers through the Mavis ecosystem, creating an environment of innovation and support for developers looking to build their products on Ronin. In 2024, Ronin aims to further decentralize its network by transitioning from a PoA to a PoSA consensus mechanism. This shift is expected to expand validator roles to RON token holders, enhancing the network’s decentralization and aligning with the broader blockchain ethos of distributed consensus.
Illuvium (ILV)
Illuvium is hailed as the first AAA-quality game on the Ethereum blockchain, combining open-world exploration with creature-collecting mechanics. Players adventure through a richly designed landscape, collecting and battling creatures called Illuvials, each with unique classes and affinities such as Air, Earth, Fire, Nature, and Water. These Illuvials, encoded as NFTs, can be traded, fused into more powerful forms, and used in battles across the game’s vast environment. Leveraging Layer-2 technology through Immutable X, Illuvium offers gas-free trading experiences on its decentralized exchange, IlluviDEX, enhancing accessibility and driving player engagement.
Illuvium uses the ILV token, serving multiple purposes within its ecosystem, including rewards for player achievements, staking, and participation in project governance through the Illuvium DAO. Players can also opt for the sILV token for immediate in-game use instead of waiting for ILV tokens to unlock. Illuvium’s vibrant community, comprising 600,000 Discord members, actively engages across social media platforms.
In 2024, Illuvium plans to launch new titles within its ecosystem, including an auto-battler game and further develop its game modes. The project’s goal is to solidify its position as a leading name in the blockchain gaming sector by continuing to develop its interactive gaming ecosystem, where assets can be utilized across different games and platforms.
Immutable X (IMX)
Immutable X holds a significant position as a Layer-2 scaling solution for Ethereum, specializing in minting NFTs and Web3 gaming. The platform utilizes StarkWare’s StarkEx ZK-Rollup technology to address Ethereum’s scalability challenges. Immutable X offers gas-free NFT minting, significantly enhancing user and developer experiences and reducing costs by eliminating gas fees. This technology aims to scale Ethereum up to 9,000 transactions per second (TPS), ensuring high throughput for NFT transactions. Immutable X provides a seamless NFT trading experience, with over 33 million gas-free NFTs minted and support for over seven million NFT transactions.
The IMX token, an ERC-20 token, is the core platform token of the Immutable X ecosystem, serving multiple purposes including fee payments, staking, and governance. A portion of the protocol fees (20%) is paid in IMX, either directly or through automatic currency conversion. This model allows users who do not directly hold IMX to still participate on the platform. Immutable X offers strong support for developers through APIs and SDKs, making it easier to launch new games and NFT projects. The platform provides a global order book, enhancing liquidity for NFT markets by instantly distributing NFTs across the entire network.
One of the most notable developments of Immutable X is the announcement of a partnership with GameStop to launch an NFT marketplace, significantly boosting IMX’s growth momentum. The platform has also launched Immutable Ventures, a $500 million fund to invest in and support promising NFT and GameFi projects built on Immutable X. Dozens of popular P2E games such as Gods Unchained, Guild of Guardians, and Illuvium have integrated with Immutable X, driving significant user growth through 2023. In 2024, Immutable announced gas-free transactions for Immutable Passport holders on Immutable zkEVM, powered by Polygon, further lowering barriers to entry and improving user experience. Upcoming launches and partnerships, such as with Param Labs and Ambrus Studios, demonstrate Immutable X’s commitment to expanding its offerings and maintaining its position as the leading solution for minting and trading NFTs on Ethereum.
Notcoin (NOT)
Notcoin is making waves in the GameFi sector and the TON ecosystem this year, attracting a large audience with over 35 million players. Notcoin is a game using a unique “Tap-to-Earn” mechanism on the Telegram platform. As a GameFi coin to watch in 2024, Notcoin offers a simple yet engaging way to earn tokens by tapping a virtual coin. Despite its simplicity, the game’s rapid adoption with millions of players joining soon after its launch indicates the project’s potential impact on the GameFi market. KuCoin introduced Notcoin as the 13th project on its Pre-market trading platform on May 10, 2024.
The game operates on the premise that anyone can mine (tap) Notcoin through repeated clicks on the Telegram app, integrating a social element and significantly contributing to the project’s popularity.
Notcoin stands out because it does not require traditional cryptocurrency integration processes such as setting up wallets or handling transaction fees, making it accessible to a broader audience unfamiliar with cryptocurrencies. For those looking to explore new GameFi projects with unique and community-oriented elements, Notcoin offers an enticing opportunity. The developers of Notcoin plan to mint the NOT token on the TON blockchain, giving the tokens that players earn in the game real-world value.
Axie Infinity (AXS)
Axie Infinity operates on the Ronin blockchain and is a pioneering project in the Play-to-Earn (P2E) space, where players collect, breed, and battle cute creatures called Axies. These Axies are encoded as NFTs (non-fungible tokens) and can be bought, sold, and even rented. All these features have created a thriving in-game economy. Players battle each other in PvP arenas, earning Smooth Love Potion (SLP) tokens used to breed Axies or sold on the market. AXS is another token in the game that serves as a governance token, allowing holders to participate in crucial decisions shaping the future of the Axie Universe.
Axie Infinity gained significant momentum in 2023, with an average monthly player count of 432,061 and peak daily players reaching 288,201. Compared to November 2022, this represents a 59% increase in active users and a 214% increase in sales volume. The average number of unique active wallets (UAW) in the past 30 days was 68.29k at the time of writing.
The tokenomics of Axie Infinity revolve around its native cryptocurrencies AXS (Axie Infinity Shards) and SLP (Smooth Love Potion). AXS serves as a governance token, allowing holders to vote on important decisions and participate in the game’s economic system. SLP is a utility token that can be earned through gameplay and is necessary for breeding Axies. The game has introduced mechanisms to balance the supply of SLP, notably burning more SLP than issuing in 2023 to ensure a deflationary supply curve.
The game has introduced vertical development through part development and Axie Core, aiming to create a sustainable balanced economic system that supports the Play-to-Earn (P2E) model. In 2024, Axie Infinity plans to integrate AXP (Axie experience points) and development utilities into a broader range of Axie experiences. The team aims to further refine the game’s economic model by experimenting with changes in the distribution and supply dynamics of SLP.
Pixels (PIXEL)
Pixels is a Play-to-Earn (P2E) game inspired by Minecraft, built on the Ronin sidechain. Players own individual Land NFTs, customizable virtual plots where they can build, explore, and battle other players. The core gameplay revolves around voxel-based creativity, allowing players to design unique structures, landscapes, and interactive experiences. Players earn PIXEL, the in-game currency, through activities such as crafting, competing in minigames, and renting out their virtual land. PIXEL can be used to purchase in-game items, trade on the marketplace, and participate in governance.
The PIXEL token serves as the project’s premium currency and has seen significant market activity, including being listed on major cryptocurrency exchanges like KuCoin. As of February 2024, the PIXEL token has a market capitalization of $393.63 million, with recent price fluctuations reaching all-time highs. Before the PIXEL token release, the game developers of Pixels announced a surprise PIXEL airdrop for Ronin network users who had staked RON tokens. The snapshot for eligibility was taken on February 8, and the airdrop will distribute 20 million RON in two rounds, with rewards of up to 3,955 PIXEL per eligible wallet address.
The game plans to introduce another currency, BERRY, for in-game transactions, emphasizing a dual-currency system to enhance the gaming economy. BERRY is set to be the main in-game currency on the Ronin blockchain, while the PIXEL token will be used for premium in-game transactions such as minting new land NFTs, boosting character energy, and more.
In 2023, Pixels underwent a notable migration from the Polygon blockchain to Ronin, bringing along 87,000 active addresses and contributing to Ronin becoming the third most active gaming network. The Pixels project also successfully completed significant funding rounds, including seed and strategic rounds, receiving support from major industry players like Animoca Brands, Leonis Capital, OpenSea, BreederDAO, reflecting strong industry support and investor confidence. Looking ahead, Pixels aims to expand its ecosystem and enhance the gaming experience with new features and utilities for both the PIXEL and BERRY currencies.
Heroes of Mavia (MAVIA)
Heroes of Mavia (HoM) is a mobile-first strategic Play-to-Earn (P2E) game built on the Ronin sidechain. Players conquer and develop their own plots of land, build armies, and battle other players to expand their empire and earn in-game currency Ruby. As a mobile game, HoM aims for broad accessibility and integrates NFT elements such as Land, Heroes, and Statues, each offering unique functionalities and enhancing the gaming experience. HoM boasts a growing community with over 600,000 Discord members and is very popular on social media.
Heroes of Mavia uses a dual-token model, including the RUBY token, with an unlimited supply, earned through gameplay to upgrade NFTs, and the MAVIA token, with a limited supply, used for governance and marketplace transactions within the game. The game also features NFTs, including land plots, heroes, buildings, and statues, offering various gaming benefits and investment opportunities. Landowners, in particular, enjoy significant advantages, including early access and potential rewards from virtual land staking initiatives.
In 2023, Heroes of Mavia surpassed one million downloads on iOS and Android before its token release, demonstrating strong appeal within both the Web 3.0 and Web 2.0 gaming communities. The game ranked highly in several key markets worldwide. Looking ahead, Heroes of Mavia plans to expand its gameplay and ecosystem through continuous updates and the implementation of its virtual land staking program. The game aims to combine free-to-play and pay-to-play models, leveraging NFTs and cryptocurrencies to provide a unique gaming experience.
PlayDapp (PLA)
PlayDapp is a blockchain gaming platform aiming to bridge the gap between Web2 and Web3 technologies by making digital assets accessible to everyone. It serves as a comprehensive ecosystem for gamers and developers, providing tools to transform traditional applications into decentralized applications (dApps) and enabling the creation, purchase, and trading of in-game NFT assets. The PlayDapp SDK and C2C Marketplace support the integration of blockchain technology into games and the monetization of in-game assets.
PlayDapp’s native token, PLA, operates under the ERC20 standard and plays a crucial role in the ecosystem. It is used for transactions, developer rewards, and in-game purchases. With a total supply of 700 million tokens, the allocation includes 455 million for investors and partners, 100 million for the ecosystem, 95 million for the team, and smaller portions for advisors and marketing initiatives. The PlayDapp community boasts over 800,000 Discord members and an active presence on social media.
The PlayDapp ecosystem grew rapidly in 2023, providing a dedicated platform for developing and distributing P2E games and entering the metaverse with virtual land purchases and partnerships. PlayDapp has also formed alliances with Microsoft and Chainlink and launched a mobile wallet (beta) to increase accessibility. PlayDapp may focus on attracting more game developers to offer a wider variety of Play-to-Earn (P2E) experiences, implementing improvements to the PlayDapp C2C marketplace, and expanding its user base.
GAMEE (GMEE)
GAMEE is a leading Play-to-Earn (P2E) platform with a mobile-first experience, aiming to connect traditional gaming with the benefits of blockchain. The project aims to provide users with a space to earn and own in-game assets. The platform offers a range of casual and hyper-casual mobile games where players can earn rewards through gameplay. GAMEE uses the GMEE token, developed based on the ERC-20 token standard, for staking, in-game purchases, market fee payments, and participation in governance.
GAMEE has attracted over 75 million global users, engaging in more than 9.2 billion game sessions. The GAMEE ecosystem includes Web2 games and Arc8, a virtual game hall that has brought 2.7 million people to Web3, demonstrating the platform’s commitment to expanding the blockchain gaming landscape.
GAMEE started 2023 with impressive highlights, releasing new P2E hits like Archer and Crypto Golf alongside integrating with major wallets like MetaMask to enhance accessibility. The project introduced GMEE token rewards based on gameplay, solidifying the Play-to-Earn model. Strategic partnerships with Polygon and Chainlink further strengthened the project’s position. 2024 promises further growth and breakthroughs for GAMEE, with plans to expand its game library, enhance the NFT marketplace, empower the community through governance, explore cross-chain capabilities, and boost player engagement through social and competitive features. This mobile-first platform aims to become a significant force in the future of P2E gaming.
ApeCoin (APE)
ApeCoin (APE) has a deep connection with the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), serving as the native cryptocurrency of these widely recognized NFT collections. It operates under the governance of ApeCoin DAO, a decentralized autonomous organization where ApeCoin holders have a voice in the decision-making process. The token is built on the Ethereum blockchain under the ERC-20 token standard, aiming to enhance culture, gaming, entertainment, and commerce through community-led initiatives.
ApeCoin DAO plays a crucial role in the project’s development, with token holders participating in governance decisions. This structure has fostered a strong community engaged in proposals and discussions about the project’s future. The ApeCoin Foundation, acting as the legal representative of the DAO, oversees the implementation of community decisions and facilitates the ecosystem’s growth.
In 2023, Yuga Labs created virtual land plots in the Otherside metaverse, witnessing notable sales and increasing interest within the ApeCoin ecosystem. This initiative highlighted ApeCoin’s utility in the metaverse, particularly in transactions and as an incentive in Play-to-Earn (P2E) games such as Benji Bananas by Animoca Brands.
ApeCoin DAO is launching ApeChain, a Layer-2 scaling solution integrating Arbitrum technology, expected to significantly impact APE token functionality and governance. This decision is supported by 25 million APE tokens through a community voting process, demonstrating a preference for Arbitrum’s blockchain governance. This move aims to enhance the functionality, efficiency, and growth of the ApeCoin ecosystem. The APE token will serve a dual role on ApeChain, functioning as both a gas token and a governance token, increasing the participation of the ApeCoin DAO community in the decision-making process.
Portal (PORTAL)
Portal Gaming is a cross-chain gaming ecosystem designed to unify Web3 and connect it with mainstream players (audiences). Operating on the LayerZero blockchain, Portal Gaming seamlessly integrates with Solana and Polygon to establish a unified ecosystem for games and gamers. The platform serves as a central gateway into the Web3 gaming realm, simplifying the interaction process with on-chain gaming environments and addressing the challenge of using multiple cryptocurrencies or tokens across different games.
The PORTAL token is used for transaction fees, platform payments, governance participation, staking for game distribution, granting exclusive access to NFTs, and powering core infrastructure through node purchases. The total supply of PORTAL tokens is fixed at 1 billion, all created at inception and gradually allocated to the community fund over time.
Portal places a strong emphasis on community and developer support, making clear efforts to create a hub connecting gamers, developers, and content creators. The platform boasts an extensive library of over 200 games, offering easy access and personalized recommendations, while implementing advanced security measures to protect users. Additionally, Portal provides grants and funding, distributing widely across Web3 and mainstream players, offering audience data insights to developers, and enabling seamless integration for various game types and APIs. The project gained prominence after being listed on Binance Launchpool.
Analyzing the Differences Between Traditional Gaming and GameFi GameFi is a concept that has introduced a new model combining video gaming and decentralized finance (DeFi). This combination has sparked debate about the pros and cons of GameFi compared to traditional gaming. Here is a detailed analysis:
Advantages:
- Financial Incentives: GameFi’s Play-to-Earn (P2E) model allows players to earn cryptocurrency or NFTs through their gaming experiences. This democratizes global financial opportunities through the inclusive and transparent nature of blockchain technology.
- Asset Ownership and Interaction: Players truly own in-game assets (NFTs) that can be traded or used across platforms, making them stakeholders in the game’s economy rather than just consumers.
- Promoting Cryptocurrency Awareness: By merging gaming and DeFi, GameFi introduces a broader audience to cryptocurrency, bringing them closer to the world of crypto and blockchain technology, thus promoting mainstream crypto adoption.
- Bridging Entertainment and Economic Opportunity: GameFi combines entertainment with economic opportunities, promoting digital ownership, financial literacy, and decentralized finance, thereby enhancing its significance in the blockchain industry.
Disadvantages:
- Barrier to Entry: In traditional gaming, users can easily start playing by creating an account and funding it. However, in GameFi, new players need to learn about cryptocurrencies, wallets, and blockchain. This can limit the player base to those already familiar with crypto.
- Market Volatility: Players in GameFi face the challenge of market volatility. While this can add excitement, it can also lead to frustration due to the unpredictable nature of the cryptocurrency market.
Important Considerations When Investing in GameFi Projects The allure of earning money and owning in-game assets makes GameFi an attractive prospect. However, engaging in this emerging space requires careful consideration due to inherent risks and complexities. Therefore, it is crucial to consider the following aspects before investing in these projects:
- Volatility and Speculation: The young GameFi market is highly volatile, with token values often influenced by hype, updates, and market changes. Hence, only invest what you can afford to lose.
- Sustainability and Utility: Many GameFi projects lack sustainable gameplay or long-term token utility. Therefore, before participating, evaluate the gameplay, tokenomics, and the development team’s experience to assess the project’s viability.
- Security Risks: GameFi projects face technical risks such as smart contract vulnerabilities, hacks, and rug pulls. Prioritize projects with reputable audits and robust security measures.
- Environmental Impact: The high energy consumption of blockchain can be a concern for environmentally conscious players. Consider the project’s sustainability efforts.
- Poor User Experience: GameFi often has lower speeds and higher transaction costs compared to traditional games, affecting the user experience.
- Regulatory Uncertainty: The unclear regulatory landscape surrounding GameFi can impact projects and tokens. Stay updated on potential future regulatory changes.
What is the Future Outlook of GameFi?
Experts predict a significant shift in the Web3 gaming sector, emphasizing the need for GameFi projects to focus on player ownership and deeper gaming experiences. The GameFi market is expected to grow to account for 10% of the gaming industry by 2024, up from 3% in 2023, indicating substantial growth potential. However, challenges such as overcoming concerns about in-game purchases and smoothly integrating blockchain technology remain.
Bitcoin halving and the approval of ETFs are expected to have a broad impact on the cryptocurrency market, enhancing mainstream acceptance and institutional interest in cryptocurrencies, including GameFi projects. The ability to own collectible in-game items and the integration of AI and blockchain technology in games are highlighted as key factors driving adoption, suggesting that GameFi could be a potential area for mainstream acceptance by 2024. However, realizing this potential will require overcoming current industry challenges, improving game quality, and navigating changes in the regulatory and market landscape.