Opinion | Why I Believe GameFi Will Still Lead the Next Wave?
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Opinion | Why I Believe GameFi Will Still Lead the Next Wave?
Over the past 6-7 weeks, the vast majority of tokens have been on a downward trend (except for some small-cap altcoins that performed well), while during the same period, the NFT market has been turbulent. We are experiencing a market with dispersed capital flows.
Navigating Web3 tides with focused insightsBy Raymond Chng
Translated by 0xbread, TechFlow
The next sector rotation will be GameFi, and we are still in the early stages of this field. Even though the entire industry is currently sluggish, GameFi has the potential to become a breakout catalyst for the industry and experience explosive growth. This article may offer you some valuable insights—read until the end to get your Alpha.
Over the past 6-7 weeks, most tokens have been on a downtrend (except for some small-cap altcoins that performed well), while during the same period, the NFT market has been surging. We are witnessing a fragmented market where capital is dispersing.
We’ve seen many investors earn substantial profits in the NFT market through projects like AzukiZen, BAYC, and AdamBombSquad—with some turning 5 ETH into 100 ETH or more. But where will this money eventually flow?
I believe some of these profits will flow into gaming NFTs, as these investors are already accustomed to buying NFTs. We can also observe that several NFT projects have already released full-fledged game roadmaps.
However, this trend doesn’t seem as favorable for DeFi. From what I understand, investors in the DeFi space also acknowledge that capital has indeed shifted toward other sectors. GameFi, on the other hand, represents a great balance point between NFTs and DeFi, allowing investors from both domains to participate comfortably. Moreover, GameFi developers have been continuously building and iterating over the past few months, with many projects preparing to launch new products soon. In the last cycle, GameFi was almost entirely dominated by Play-to-Earn (P2E), and certain users have grown tired of models like Axie Infinity. However, this is about to change.
Play-to-Earn (P2E) is now transitioning toward Play-and-Earn (P&E), a shift widely embraced within the GameFi community. After reading numerous articles and engaging in discussions with behavioral economists, it’s clear that this transformation in GameFi is inevitable. P&E game design will first attract traditional competitive gamers into blockchain games and further bring players from various genres into the ecosystem.
An increasing number of traditional gaming companies have announced their entry into blockchain gaming—companies like Ubisoft, Microsoft, and SoftBank, along with major investment firms, are investing in blockchain games and entering the metaverse. In the future, more traditional companies will join and invest in GameFi. Of course, many crypto funds are also actively recruiting talent for GameFi investment teams—for example, a16z. Overall, growing capital is flowing into GameFi, and its transition toward P&E will attract skilled and passionate gamers—potentially leading to a better crypto esports ecosystem, creating a positive feedback loop.
Among the projects I focus on, Cra and Magic have both remained very stable over the past month. Both have strong communities that are highly supportive and enthusiastic about their ecosystems—this is beneficial for investors.
Price chart of Cra
Price chart of Magic
So, if GameFi is indeed the next sector to explode, how should we select our investments? I’ll share my own thoughts and moves (note: not financial advice). Let’s dive in.
Avalanche’s subnets are set to launch in Q1, offering faster response times and greater scalability, significantly benefiting GameFi by providing everything needed for high-performance games. Within the Avalanche ecosystem, I’m keeping an eye on Jewel and Cra.
Jewel and Cra are blue-chip GameFi tokens in the Avalanche ecosystem, backed by strong community support and visibility. On Arbitrum, the project I’m most focused on is Magic—it features a complete ecosystem of games, NFTs, and infrastructure. This project gives me Nintendo vibes, and I’m highly excited about the community’s future development.
In the Polygon ecosystem, crypto_raiders and crypto_unicorns are among the most reliable P2E blockchain games. If you’ve followed GameFi closely, you’d know many people made huge gains during Unicorns’ rise from 0.2 ETH to 2 ETH.
Of course, there are countless blockchain games to choose from. But if you haven’t spent much time in this space, it can be extremely difficult to pick the right game and keep up with shifting trends. Therefore, in my opinion, for those who don’t have the bandwidth to deeply research GameFi, Guilds (guilds) represent one of the better investment opportunities during this upcoming GameFi surge.
Guilds like YGG, MC, GF, and AVGA function like index funds for GameFi—they participate across multiple live games. Investing in these guild tokens is akin to buying index funds such as SPY (a well-known, long-standing ETF in the U.S. stock market). Among these guilds, I personally believe GuildFi stands out as one of the best choices. Let me share some of my reasoning.
GuildFi has a GuildFi ID platform that consolidates all player data in one place. As we move toward the P&E model, this platform becomes critically important. In today’s environment, there are only a limited number of high-quality, profitable games, making rewards highly competitive. This forces players into a dilemma: either play a game they don’t enjoy but can profit from, competing against hordes of speculators, or play a game they love but sacrifice income. Is there a way to eliminate this trade-off?
The GuildFi ID platform solves this problem. Proof-of-Play is GuildFi’s unique reward system that can turn any game into a profitable one, since all games operate within the GuildFi ecosystem. This means players no longer need to choose between playing games they love and games that generate income.
Staking GF tokens also comes with many benefits. During the staking period, you can receive various airdrop rewards—imagine getting allocations in百倍-level tokens like PTP, securing asset appreciation.
GuildFi also maintains solid financial health. Its treasury is divided into three distinct parts: cash reserves, tokens, and NFTs. The higher the treasury reserve, the more stable and robust the internal ecosystem becomes. So if you’re unfamiliar with GameFi, investing in guilds might be your best bet.
Regarding my current positions, I’ve already acquired some Cra and Tus. I believe Tus will become increasingly useful as new game mechanics roll out. More players and guilds may use Tus to purchase crabs, and perhaps even land in the future. Currently, Tus is down about 30% from its all-time high—I see this as a good opportunity to build a position. As for Cra, I plan to hold indefinitely.
AXIE, as a pioneer and leader in the GameFi space, I believe will return to an upward trajectory. I’ve bought some AXS and SLP and plan to rotate into other gaming tokens later.
Then there’s Dcau, which I really like—often referred to as the “Dragon Coin.” As an early blockchain game on Avalanche, it has an FDV around $16 million, features a unique deflationary mechanism, and is currently priced in the triple digits. I’d like it even more if it reaches quadruple digits.
Final Thoughts
No one can predict the future, but I personally believe a GameFi bull run is approaching—there could be many 10x to 50x opportunities. Who knows? Just look at what AXS did in 2021! Additionally, judging from the performance of GameFi tokens over the past few weeks, they’ve shown resilience even in a bear market and have outperformed the broader market. Doesn’t this resemble the situation after May 19, 2021? Could GameFi once again become the catalyst that ignites the entire cryptocurrency market rally, just like last year?
Note: Tokens mentioned in this article do not constitute financial advice. DYOR.
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