The rise of Axie Infinity didn’t just ignite a new wave of interest in blockchain gaming—it introduced the world to GameFi, a revolutionary fusion of gaming and decentralized finance. At its core, GameFi leverages the Play-to-Earn (P2E) model, allowing players to earn real value through gameplay. By July 2021, blockchain gaming had already attracted $1 billion in investments—a staggering jump from just $72 million in all of 2020.
This explosive growth wasn’t accidental. GameFi effectively succeeded DeFi and NFTs as the next major trend in crypto, combining financial incentives with engaging gameplay. But what exactly is GameFi? While definitions vary, two primary interpretations dominate the space:
- DeFi Gamification: Adding game-like mechanics to DeFi protocols to enhance user engagement. An early example is Aavegotchi, which blends NFT collectibles with staked assets.
- Game DeFi-ification: Embedding financial mechanisms into traditional games. Axie Infinity exemplifies this with its tokenized economy where players earn while playing.
As technology evolves—especially with Layer 2 solutions and sidechains reducing transaction costs—the lines between these models blur. The synergy of blockchain, NFTs, DeFi, and DAO governance has breathed new life into digital gaming, creating self-sustaining virtual economies.
Let’s explore five of the most influential GameFi projects shaping this dynamic landscape in 2025.
Axie Infinity: The Pioneer of Play-to-Earn
👉 Discover how Axie Infinity turned gaming into an income stream for millions worldwide.
Axie Infinity stands as the flagship of the GameFi movement. Built originally on Ethereum (now operating on its own Ronin sidechain), it allows players to collect, breed, battle, and trade fantasy creatures called Axies—each represented as a unique NFT.
Players earn through two native tokens:
- SLP (Small Love Potion): Earned by completing daily quests and winning battles; used for breeding new Axies.
- AXS (Axie Infinity Shards): Governs the protocol via voting and offers staking rewards.
To participate, users need at least three Axies—though many enter via scholarship programs where experienced players lend NFTs to newcomers.
The game migrated to the Ronin sidechain to avoid Ethereum’s high gas fees, enabling faster and cheaper transactions. However, withdrawing assets back to Ethereum still requires bridging.
With over **$357 million in revenue over 30 days**, Axie Infinity ranks among the highest-earning dApps globally. Its governance token AXS boasts a market cap exceeding $4.4 billion, reflecting strong community trust and adoption.
Additionally, Yield Guild Games (YGG), a DAO focused on investing in P2E assets, has heavily backed Axie Infinity. YGG’s token saw a 15x surge within weeks of listing on major exchanges like OKX.
Illuvium: The Open-World RPG with High Stakes
Set in a sci-fi universe where players are survivors of a crashed spaceship, Illuvium is an open-world RPG built on the Immutable X Layer 2 platform. This ensures gas-free NFT minting and trading—critical for seamless gameplay.
Players explore the alien world, battle powerful creatures known as Illuvials, capture them, and fuse them into stronger forms. Each Illuvial is a unique NFT with varying rarity and combat roles across five classes and three affinities.
The ecosystem revolves around ILV, its governance token with three key utilities:
- Governance: Vote on game development decisions.
- Staking Rewards: Earn a share of platform fees.
- In-Game Incentives: Win ILV through competitions and achievements.
Backed by the Warwick brothers—co-founders of Synthetix—Illuvium enjoys strong credibility in the DeFi space. Despite not launching fully yet, it has amassed:
- Over 75,000 Discord members
- Nearly $78 million in trading volume
- A current ILV price near $466
Its anticipated Q3/Q4 release is one of the most watched events in GameFi this year.
Aavegotchi: Where DeFi Meets Cute Ghosts
Blending DeFi collateralization with NFT collectibles, Aavegotchi brings financial depth to whimsical gameplay. Each Aavegotchi is a ghost-like NFT whose traits are determined by the amount and type of aTokens (yield-bearing assets from Aave) staked in its linked wallet.
Key components include:
- Portals: Used to summon new Aavegotchis.
- GHST Token: The utility and governance token.
- Realms: Virtual land plots where players farm resources like FUD, FOMO, ALPHA, and KEK.
- Wearables & Contests: Players equip their ghosts and compete for prizes.
By staking GHST or providing liquidity, users earn points to unlock rare wearables or portals—then sell them on secondary markets. This creates multiple income streams beyond simple speculation.
GHST has surged over 110% in the past month, now trading around $2.29. With more than 140,000 transactions monthly, Aavegotchi proves that niche mechanics can drive sustainable engagement.
Zed Run: The NFT Horse Racing Revolution
Zed Run reimagines horse racing in the digital age. On Polygon’s low-cost network, players buy, breed, race, and trade NFT horses—each with genetically determined performance traits.
Race outcomes are algorithmically decided based on:
- Bloodline
- Speed genes
- Stamina
- Past performance
Winning increases a horse’s value dramatically. Some rare racers have sold for tens of thousands of dollars.
Beyond racing, Zed Run plans to expand into:
- Dynamic weather and track conditions
- Jump racing and obstacle courses
- Player-owned racetracks and stables
Backed by a16z and TCG, and supported by gaming guild YGG, Zed Run is building a full creator economy within the metaverse. It recently acquired land in Decentraland, paving the way for immersive social experiences.
With over 72,000 active Discord users, Zed Run shows how traditional sports concepts can thrive in Web3.
Nine Chronicles: The Fully Decentralized RPG
Developed by Planetarium—a studio backed by Ubisoft—Nine Chronicles is a peer-to-peer RPG with no central server. All game data lives on-chain, making it truly censorship-resistant.
Players begin as novice adventurers exploring nine kingdoms, battling bosses, crafting gear, and trading items—all without NPCs or centralized marketplaces.
Key features:
- NCG Token: Earned through referrals and gameplay; used for governance.
- Player-Driven Economy: Prices determined entirely by supply and demand.
- Progressive Unlocking: Trading unlocks at stage 17; PvP at stage 25.
Though still in closed beta, Nine Chronicles raised $2.6 million from top investors like Animoca Brands and launched WNCG on SushiSwap’s MISO platform.
Its success hinges on balancing fun gameplay with economic sustainability—a challenge all GameFi projects must overcome.
Frequently Asked Questions (FAQ)
Q: What is GameFi?
A: GameFi combines blockchain gaming with decentralized finance (DeFi), enabling players to earn real value through play-to-earn mechanics, NFT ownership, and tokenized economies.
Q: Is Play-to-Earn sustainable long-term?
A: Sustainability depends on balanced tokenomics and engaging gameplay. Projects like Axie Infinity are evolving their models to reduce inflation and boost utility.
Q: Do I need money to start playing blockchain games?
A: Some games require initial investment (e.g., buying NFTs), but scholarship programs allow free entry by borrowing assets from others.
Q: Are blockchain games safe?
A: While smart contracts are audited, risks remain—such as hacks or rug pulls. Always research projects thoroughly before investing.
Q: Can I make a living playing GameFi games?
A: Yes—especially in regions with lower living costs. Many players in Southeast Asia earn full-time incomes via Axie Infinity or similar platforms.
Q: How do I cash out earnings from GameFi games?
A: Convert in-game tokens to stablecoins or fiat via exchanges like OKX after bridging them from the game’s blockchain.
👉 Start your journey into the future of gaming—turn skills into income today.
While GameFi is still maturing, its potential to reshape both gaming and digital economies is undeniable. Success will depend not only on financial incentives but also on delivering genuinely fun experiences that retain players long after the novelty fades.
As innovation continues across NFTs, DAOs, Layer 2 scaling, and cross-chain interoperability, one thing is clear: blockchain gaming is no flash in the pan—it's the next frontier of interactive entertainment.
👉 Join the next generation of gamers who earn while they play.