Top Gaming (GameFi) Coins to Watch in 2024

GameFi combines the worlds of gaming and decentralized finance (DeFi) by incorporating financial elements like cryptocurrencies, NFTs, and blockchain technology into video games, creating an ecosystem where players can earn real-world value through gameplay.

GameFi is a revolutionary blend of gaming and finance and is one of the most popular sectors of the crypto market. The GameFi or Play-toEarn (P2E) sector holds much potential in helping onboard the next billion users to the world of web3 and cryptocurrencies. This novel concept extends beyond traditional gaming, offering players not just entertainment but also financial rewards powered by the underlying blockchain technology. Driven mainly by the tech-savvy Gen Z audience, GameFi offers ROI to players, helping them monetize the time and effort spent on gaming.

The global gaming industry is expected to grow at a CAGR of 4.2% and touch $212 billion by 2026. Meanwhile, the GameFi sector is expected to grow at a CAGR of 21.8% from 2023 to 2023, to exceed $614 billion in value, based on a study by Fortune Business Insights. At the time of writing, the GameFi sector enjoys a market cap of over $24.52 billion, based on Coinmarketcap data.

GameFi, a portmanteau of "gaming" and "finance," represents a burgeoning sector that merges the excitement of online gaming with the lucrative potential of decentralized finance (DeFi) and cryptocurrencies. Unlike traditional gaming, where the economic benefits typically accrue solely to the game developers and platform owners, GameFi introduces a revolutionary model where players can earn financial rewards for their in-game activities. This is primarily enabled through blockchain technology, non-fungible tokens (NFTs), and cryptocurrencies, which facilitate the creation of a decentralized economy within the gaming ecosystem.

In traditional gaming, players are consumers of the game, spending money to purchase games or in-game items without a return on investment in monetary terms. In the traditional gaming model, the ROI for players is fun and entertainment; in contrast, GameFi empowers players by allowing them to earn, trade, and own digital assets that have real-world value in a decentralized and more democratized manner. Blockchain technology ensures transparency and security of transactions. At the same time, NFTs represent unique digital ownership of in-game assets, such as characters, items, or land, which can be bought, sold, or traded on various platforms. Cryptocurrencies are used as the medium of exchange within these ecosystems, enabling the seamless transfer of value between players and the game environment.

According to research by CoinGecko, the price returns of GameFi's NFT market have been volatile, with some projects experiencing significant gains while others have seen losses. For example, Axie Infinity, the top play-to-earn game at the time of the infographic's creation, has seen its price returns fluctuate between 18,000% and -74% over the past year. However, despite the volatility, the overall trend for GameFi's NFT market has been positive, with the blue-chip index increasing by over 450% since January 2021.

Price returns of GameFI NFTs vs. overall NFT market | Source: CoinGecko

Here’s a look at some of the best GameFi projects the crypto market offers. We’ve explored both established and new projects, making an impact in the market based on their user base, market performance, and growth potential. Note that we’ve not just included gaming tokens but also projects that provide the necessary infrastructure to power the GameFi industry.

Ronin (RON)

Ronin is an Ethereum Virtual Machine (EVM)-compatible blockchain specifically designed to address the unique needs of blockchain gaming, particularly focusing on games with player-owned economies. Developed by Sky Mavis, the team behind the popular crypto game Axie Infinity, Ronin addresses pain points like scalability and transaction fees that plagued early P2E projects. Ronin's approach, leveraging a Proof-of-Authority (PoA) consensus mechanism, emphasizes efficiency and scalability, with plans to transition towards a more decentralized Proof-of-Staked-Authority (PoSA) model to enhance network security and user participation. RON, the native token of the Ronin network, plays a central role in its ecosystem, serving as the primary medium for transaction fees and governance.

Beyond Axie Infinity, the Ronin (RON) network supports a growing number of P2E games across various genres. Here are some notable examples:

Pixels: A multiplayer pixel art building and battling game inspired by Minecraft.
Zoids Wild Arena: A 3D mecha battle game based on the popular Zoids franchise.
The Machines Arena: A robot battling game with strategic gameplay and customization options.
Tribesters: Island of Solas: A social sim game with land ownership and NFT-based pets.
Civitas: A strategy game where players build and manage their own civilizations.
Axie Classic: The original, turn-based card game version of Axie Infinity.
Defenders of Lunacian Land: A tower defense game set within the Axie Infinity universe.

Ronin benefits from strong community and developer support, anchored by its association with Axie Infinity and its parent company, Sky Mavis. Sky Mavis provides a suite of tools for game developers through the Mavis Ecosystem, fostering an environment of innovation and support for developers looking to build 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 open up validator roles to RON token holders, thereby increasing the network's decentralization and aligning with the broader blockchain ethos of distributed consensus.

Iluvium (ILV)

Iluvium is heralded as the first AAA-quality game on the Ethereum blockchain, combining open-world exploration with a creature collection mechanic. Players venture through a richly designed landscape, capturing and battling creatures known as Illuvials, each with unique classes and affinities such as Air, Earth, Fire, Nature, and Water. These Illuvials, represented as NFTs, can be traded, fused into more potent forms, and utilized in battles across the game's expansive environment. Leveraging Layer-2 technology through Immutable X, Illuvium offers a gas-free trading experience on its decentralized exchange, the IlluviDEX, enhancing the game's accessibility and player engagement.

Iluvium utilizes the ILV token, which serves multiple purposes within its ecosystem, including rewards for player achievements, staking, and participation in the project's governance through the Illuvium DAO. Players can also opt for the sILV token for immediate use within the game instead of waiting for the ILV tokens to unlock. Iluvium’s vibrant community, including 600,000 Discord members, enjoys active engagement on social media platforms.

In 2024, Illuvium plans to launch new titles within its ecosystem, including an auto battler game and expansions to its existing gameplay modes. The project aims to further its position as a leading name in blockchain gaming by continuing to develop its interoperable gaming ecosystem, where assets can be used across various games and platforms.

Immutable X (IMX)

Immutable X stands as a significant layer-two scaling solution for Ethereum, specializing in NFT minting and Web3 games. It utilizes StarkWare's StarkEx ZK-Rollup technology to address Ethereum's scalability challenges. It offers gas-free minting of NFTs, drastically enhancing user and developer experiences and lowering costs by eliminating gas fees. This technology aims to scale Ethereum to 9,000 transactions per second (TPS), ensuring high throughput for NFT transactions. Immutable X aims to provide a seamless experience for trading NFTs, boasting over 33 million NFTs minted gas-free and facilitating over seven million NFT trades.

The IMX token, an ERC-20 token, underpins the Immutable X ecosystem, serving multiple purposes, including fee payment, staking, and governance. A portion of the protocol's fees (20%) is paid in IMX, either directly or through an automatic currency swap. This model allows users who do not directly hold IMX to still participate on the platform. Immutable X offers robust 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 marketplaces by instantly distributing NFTs across the entire network.

One of the most notable developments for Immutable X was the announcement of a partnership with GameStop to launch an NFT marketplace, which significantly boosted IMX's momentum. It also launched Immutable Ventures, a $500 million fund to invest in and support promising NFT and GameFi projects building on Immutable X. Dozens of popular P2E games like Gods Unchained, Guild of Guardians, and Illuvium 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 reducing barriers to entry and enhancing user experience. Upcoming launches and collaborations, such as with Param Labs and Ambrus Studios, indicate Immutable X's commitment to growing its offerings and maintaining its position as a leading solution for NFT minting and trading on Ethereum.

Beam (BEAM)

Beam, developed by the Merit Circle DAO, is a gaming-focused Avalanche subnet designed to enhance the GameFi ecosystem. Beam has evolved from a gaming DAO into a full-fledged ecosystem with a keen focus on simplifying blockchain technology for everyday users, particularly gamers and developers.

One of the key offerings of Beam is Beam Chain, an open-source, EVM-compatible blockchain specifically designed with gamers and dApps in mind. Built for scalability and affordability, Beam Chain aims to provide a smooth and cost-effective experience for developers building games and other decentralized applications. Users can manage their BEAM tokens (previously MC tokens) and other cryptocurrencies through the Beam Wallet, a multi-asset, cross-chain wallet solution. While not strictly a "GameFi" project in the traditional sense, Beam's dedication to simplifying blockchain technology for gamers and its focus on building a user-friendly gaming ecosystem make it a unique and interesting player in the GameFi sector.

Beam's integration with the Immutable zkEVM, powered by Polygon, marks a significant technical enhancement, making its tech stack and Sphere NFT marketplace compatible with advanced scaling solutions. It not only broadens Beam's technological capability but also strengthens its commitment to providing a seamless experience for gamers and developers alike. One of the notable developments for Beam in 2023 was the strategic partnership with Pantera Capital, which has provided both financial backing and strategic support for the ecosystem. The commitment to being chain-agnostic and expanding its technological stack to support the Immutable zkEVM indicates a forward-thinking approach that could see Beam exploring further integrations and collaborations to enhance its gaming ecosystem.

Axie Infinity (AXS)

Axie Infinity, operating on the Ronin blockchain, is a trailblazer in the play-to-earn (P2E) space, where players collect, breed, and battle adorable, customizable creatures called Axies. These Axies are NFTs (non-fungible tokens) that can be bought, sold, and even rented, fueling a thriving in-game economy. Players battle each other in PvP arenas, earning Smooth Love Potion (SLP) tokens used for breeding Axies or selling on the marketplace. AXS, the governance token, allows holders to participate in key decisions shaping the future of the Axie Universe.

Axie Infinity started 2023 strong, with its average monthly players reaching 432,061 and daily peak players touching 288,201. Compared to November 2022, this represented a 59% increase in active users and a 214% increase in sales volume. Its average UAW (unique active wallets) over the past 30 days is 68.29k at the time of writing.

Axie Infinity's tokenomics revolves around its native cryptocurrency, AXS (Axie Infinity Shards), and SLP (Smooth Love Potion). AXS serves as the governance token, allowing holders to vote on key decisions and partake in the game's economic system. SLP is earned through gameplay and is required for breeding Axies. The game introduced mechanisms to balance the supply of SLP, notably burning significantly more SLP than was emitted in 2023 to ensure a deflationary supply curve.

The game introduced vertical progression via part evolution and Axie Core, aiming to sustainably create a balanced economic system that fuels the play-to-earn model. In 2024, Axie Infinity plans to integrate AXP (Axie experience points) and evolution utility into a broader range of Axie experiences. The team aims to refine the game's economic model further by experimenting with changes to SLP's distribution and supply dynamics.

Heroes of Mavia (MAVIA)

Heroes of Mavia (HoM) is a mobile-first, play-to-earn (P2E) strategy game built on the Ronin sidechain. Players conquer and develop their own land plots, build armies, and battle other players to expand their empires and earn the in-game currency, Ruby. As a mobile game, HoM aims for wide accessibility and integrates various NFT elements like Land, Heroes, and Statues, each offering unique functionalities and enhancing the gameplay experience. HoM enjoys a growing community with over 600,000 Discord members and an active social media presence.

Heroes of Mavia utilizes two types of tokens: $RUBY, with an unlimited supply, earned through gameplay for upgrading NFTs; and $MAVIA, a capped token used for governance and trading items on the game's marketplace. The game also features NFTs, including land plots, heroes, buildings, and statues, providing various gameplay benefits and investment opportunities. Landowners, in particular, enjoy significant advantages, including early access and potential rewards from land staking initiatives.

In 2023, Heroes of Mavia achieved over one million downloads across iOS and Android before its token launch, demonstrating its appeal across both Web 3.0 and Web 2.0 gaming communities. The game reached top rankings in several key markets worldwide. Looking ahead, Heroes of Mavia plans to expand its gameplay and ecosystem through continuous updates and the roll-out of its land staking program. The game aims to blend free and paid gaming models, leveraging NFTs and cryptocurrencies to provide a unique gaming experience.

Pixels (PIXEL)

Pixels is a play-to-earn (P2E) game inspired by Minecraft, built on the Ronin sidechain. Players own individual Land NFTs, customizable plots where they can build, explore, and battle other players. The core gameplay revolves around voxel-based creation, allowing players to design unique structures, landscapes, and interactive experiences. Players earn PIXEL, the in-game currency, through various activities like crafting, competing in minigames, and renting out their 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 top crypto exchanges such as KuCoin. As of February 2024, the PIXEL token had a market cap of $393.63 million with a fluctuating price that recently hit an all-time high. Ahead of the PIXEL token launch, the Pixels game developers announced a surprise PIXEL airdrop for Ronin network users who staked RON tokens. The snapshot for eligibility was taken on February 8, and the airdrop will distribute 20 million RON in two waves, with rewards up to 3,955 PIXEL for each qualified wallet.

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 game's primary cryptocurrency on the Ronin blockchain. At the same time, PIXEL tokens will be used for premium in-game transactions like minting new land NFTs, boosting character energy, and more.

In 2023, Pixels experienced a notable migration from the Polygon blockchain to Ronin, bringing with it 87,000 active addresses and contributing to Ronin becoming the third most active gaming network. The Pixels project has also successfully completed significant funding rounds, including a seed round and a strategic round, drawing support from major industry players like Animoca Brands, Leonis Capital, OpenSea, BreederDAO, and more, reflecting robust industry backing and investor confidence. Looking ahead, Pixels aims to expand its ecosystem further and enhance the gaming experience with new features and utilities for both the PIXEL and BERRY currencies.

Xai (XAI)

Xai, powered by Arbitrum technology and developed in collaboration with Offchain Labs, is positioned as a transformative force in blockchain gaming, aiming to make it easier for traditional gamers to engage with Web3 gaming. This layer 3 blockchain focuses on scalability, security, and user-friendliness, with features like account and wallet abstraction to simplify player onboarding. By reducing transaction costs and increasing contract limits, Xai allows game developers to create more immersive experiences without financial or technological constraints.

The XAI token economics involves a distribution that includes a 3.00% allocation to the Binance Launchpool, 20.00% to the team, and portions for investors, reserves, the ecosystem, the community, and DAC and Nodes, totaling a significant portion of the supply. An XAI airdrop on the Arbitrum network was a notable event in its ecosystem, which distributed about $70 million worth of XAI tokens to players, significantly boosting its market presence and engagement.

Xai actively engages with developers through a Developer Fund and grants program, offering resources and support to build games on their platform. Xai made significant strides in 2023, launching their mainnet, completing token generation events, and integrating with popular games like Final Fantasy VII Ever Crisis and Illuvium. Looking forward, Xai has outlined an ambitious roadmap that includes launching several games on its blockchain, such as LAMOverse and Web3 Warriors, alongside the mainnet launch, token generation event (TGE), and exchange listing scheduled for the first half of 2024.

PlayDapp (PLA)

PlayDapp is a blockchain gaming platform aiming to bridge the gap between Web2 and Web3 technologies by making digital assets accessible to all. It serves as a comprehensive ecosystem for gamers and developers, offering tools to transition traditional apps to decentralized apps (dApps) and enabling the creation, purchase, and trading of in-game NFT assets. PlayDapp SDK and C2C Marketplace facilitate the integration of blockchain technology into gaming and monetizing in-game assets.

The native token of PlayDapp, PLA, operates under the ERC20 standard and plays a crucial role within the ecosystem. It is utilized for transactions, rewarding developers, 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 engaged social media presence.

The PlayDapp ecosystem grew rapidly in 2023, offering a platform specifically for P2E game development and distribution and entering the metaverse sector with land acquisitions and collaborations. PlayDapp also forged alliances with Microsoft and Chainlink and launched a mobile wallet (beta) for increased accessibility. PlayDapp could focus on attracting more game developers to offer more diverse P2E experiences, roll out enhancements to the PlayDapp C2C marketplace, and expand its user base.

GAMEE (GMEE)

GAMEE is a leading mobile-first play-to-earn (P2E) platform that aims to bridge traditional gaming with blockchain's benefits, offering users a space to earn and own in-game assets. It offers a variety of casual and hyper-casual mobile games where players can earn rewards through gameplay. GAMEE uses the ERC-20 token GMEE for staking, in-game purchases, marketplace fees, and governance participation.

It has attracted over 75 million global users, engaging in more than 9.2 billion gameplay sessions. GAMEE's ecosystem includes Web2 games and Arc8, a virtual arcade that has onboarded 2.7 million people to Web3, showcasing the platform's commitment to expanding the blockchain gaming landscape.

GAMEE kicked off 2023 with a bang, releasing new P2E hits like Archer and Crypto Golf while integrating with major wallets like MetaMask to boost accessibility. They introduced gameplay-based GMEE token rewards, solidifying their play-to-earn model. Strategic partnerships with Polygon and Chainlink further cemented their position. 2024 promises an even bigger GAMEE, with plans to expand its game library, enhance the NFT marketplace, empower the community through governance, explore cross-chain possibilities, and foster player engagement through social and competitive features. This mobile-first platform clearly aims to be a major force in the future of P2E gaming.

Moonwalk

Launched in early 2023, Moonwalk.fit gamifies real-world walking and running, enabling users to earn crypto rewards while getting fit. It integrates with your phone's health data and leverages GPS tracking to measure your activity, converting steps and distance into an in-game currency called "Lunar Energy." This currency can be used to purchase in-game items, participate in challenges, and potentially trade for cryptocurrency (currently in development) in the future.

Unlike other Move-to-Earn (M2E) games like STEPN and Sweatcoin, Moonwalk caters to a broader audience seeking accessible fitness activities instead of more intense exercise forms. The game’s social features include leaderboards, walking groups, and social challenges to encourage community engagement and competition. While currently offering in-game rewards, potential future cryptocurrency integration adds an exciting earning incentive.

Moonwalk launched its Android and iOS apps in early 2023 and soon gained a growing user base with active social media communities. In 2024, the Moonwalk game could integrate crypto rewards for walking and running and develop a marketplace for trading in-game items.

ApeCoin (APE)

ApeCoin (APE) is deeply intertwined with the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC), serving as the native cryptocurrency of these widely recognized NFT collectibles. It operates under the governance of the ApeCoin DAO, a decentralized autonomous organization where ApeCoin holders have a say in decision-making processes. The token is built on the Ethereum blockchain as an ERC-20 token, aimed at enhancing the realms of culture, gaming, entertainment, and commerce through community-led initiatives.

The ApeCoin DAO plays a critical role in the project's development, with token holders participating in governance decisions. This structure has fostered a robust community engaged in various proposals and discussions around the project's future. The ApeCoin Foundation, acting as the DAO's legal representative, oversees the implementation of community decisions and facilitates ecosystem growth.

In 2023, Yuga Labs minted the Otherside metaverse lands, which saw remarkable sales and heightened interest in the ApeCoin ecosystem. This initiative underscores ApeCoin's utility within the metaverse, particularly in transactions and as an incentive in play-to-earn (P2E) games like Benji Bananas by Animoca Brands.

The ApeCoin DAO is launching ApeChain, a Layer-2 scaling solution integrating Arbitrum technology, set to affect the APE token's utility and governance significantly. The decision, backed by 25 million APE tokens via community vote, shows a preference for Arbitrum's blockchain governance. This move aims to boost ApeCoin's functionality, efficiency, and ecosystem growth. APE tokens will serve dual roles in ApeChain as gas and governance tokens, increasing the ApeCoin DAO community's involvement in decision-making.

Portal (PORTAL)

Portal Gaming is a cross-chain gaming ecosystem designed to unify Web3 and connect it to mainstream audiences. It operates on the LayerZero blockchain and integrates seamlessly with Solana and Polygon to establish a unified ecosystem for games and gamers. The platform serves as a centralized gateway into the realm of Web3 gaming, streamlining the process of engaging with various on-chain gaming environments and tackling the challenge of utilizing 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 the core infrastructure through node purchases. The total supply of $PORTAL tokens is fixed at 1 billion, all minted at genesis and vested in the community treasury over time.

Portal strongly emphasizes community and developer support, evident in its efforts to create a hub that brings together gamers, developers, and content creators. The platform boasts an extensive library of over 200 games, offering effortless discovery and personalized recommendations, and implements cutting-edge security measures to protect its users. Furthermore, Portal provides grants and funding, wide distribution across Web3 and mainstream players, insights through audience data for developers, and seamless integration for various game types and APIs. The project shot into the limelight after being listed on the Binance Launchpool.

Traditional Gaming vs. GameFi: A Comparative Analysis

GameFi introduces a new paradigm that blends gaming with decentralized finance (DeFi). This evolution has sparked a debate on the merits and drawbacks of GameFi versus traditional gaming.

Pros:

Financial Incentives: GameFi's play-to-earn models let players earn cryptocurrency or NFTs through gameplay, democratizing financial opportunities globally via blockchain technology's inclusivity and transparency.
Ownership and Interoperability: Players truly own in-game assets (NFTs) that can be traded or used across platforms, making them not just consumers but stakeholders in the game's economy.
Supports Crypto Adoption: By merging gaming and DeFi, GameFi familiarizes a vast audience with cryptocurrencies and blockchain technology interactively, potentially boosting mainstream adoption.
Bridges Entertainment and Economic Opportunity: GameFi combines entertainment with economic opportunity, promoting digital ownership, financial literacy, and decentralized finance, thereby enhancing its significance in the blockchain industry.

Cons:

Higher Entry Barriers: Complex Entry Barriers: In traditional gaming, users can easily start playing by just creating an account and depositing money. However, in GameFi, new players must learn about cryptocurrency, wallets, and blockchain. This could limit the audience to only those who are already familiar with crypto.
Market Volatility: Players in GameFi face the challenges of market fluctuations. This can add excitement or lead to disappointment, given the unpredictable nature of the cryptocurrency market.

The allure of earning while playing and owning in-game assets makes GameFi an exciting prospect. However, venturing into this emerging space requires careful consideration due to its inherent risks and complexities. Before diving in, here are some key aspects you need to consider:

Volatility and Speculation: The nascent GameFi market is highly volatile with token prices susceptible to hype, updates, and market shifts. Only invest what you can afford to lose.
Sustainability and Utility: Many GameFi projects lack sustainable gameplay or long-term token utility. Evaluate the gameplay, tokenomics, and team experience to assess potential longevity and engagement.
Security Risks: GameFi projects face technical risks like smart contract vulnerabilities, hacks, and rug pulls. Prioritize projects with reputable audits and security measures.
Environmental Impact: Blockchain's high energy consumption may concern environmentally conscious players. Consider the project's sustainability efforts.
Poor User Experience: GameFi often has lower speed and higher transaction costs compared to traditional games, impacting user experience.
Regulatory Uncertainty: The unclear regulatory landscape around GameFi could impact projects and tokens. Stay informed about potential regulatory changes.

Experts predict a shift in narrative around Web3 gaming, emphasizing the need for GameFi projects focusing on player ownership and more immersive gaming experiences. The GameFi market is projected to grow to 10% of the gaming industry in 2024, up from 3% in 2023, indicating its potential for substantial growth. However, challenges such as overcoming in-game purchase apprehensions and integrating blockchain technology seamlessly into gaming remain.

The Bitcoin halving and ETF approvals are expected to have a broader impact on the crypto market, potentially leading to increased mainstream adoption and institutional interest in cryptocurrencies, including those associated with GameFi projects. The ability to own in-game collectibles and the integration of AI and blockchain in gaming are highlighted as key drivers for adoption, suggesting that GameFi could be an area for mainstream adoption in 2024. However, achieving this potential will require overcoming current industry challenges, enhancing gameplay quality, and navigating the changes in the regulatory and market landscapes.