After the fever of Play-to-Earn (P2E) games between 2021 and 2023, the GameFi market underwent an inevitable maturation process. Many titles that emerged in the wake of the hype failed to sustain their economies or provide a truly engaging gaming experience.
The outcome was predictable: token collapses, abandonment of communities, and a strong decline in the trust of investors and players. But, as in every cycle of innovation, lessons also emerged. And, as you may have already noticed, these lessons make all the difference regarding the robustness of new projects that are emerging in the crypto universe.
In 2025, a new generation of projects is being called 'GameFi 2.0'. They bring more solid proposals, focusing on gameplay, player retention, and more sustainable tokenomics models.
In this article, we will explore what differentiates this new phase from the previous one, which games are standing out, and whether the traditional gaming world will finally embrace this crypto angle.
What worked (and what didn’t work) in the first P2E cycle
The first wave of Play-to-Earn (P2E) games was driven by a model that prioritized direct financial rewards to players. Titles like Axie Infinity and Bomb Crypto became popular by allowing users to earn tokens by performing basic tasks, such as battling bots or collecting items in repetitive stages.
This mechanic attracted a huge player base, many of them coming from developing countries and mainly motivated by the promise of quick financial returns — and not necessarily by the value of entertainment or the narrative of these games.
The big problem is that these ecosystems were sustained by a fragile economic model that was highly dependent on the continuous influx of new users. As the player base grew, the demand for tokens remained high, driving prices up. However, when the influx began to slow down — something inevitable in any adoption cycle — the constant issuance of tokens generated inflation within the game.
The supply grew uncontrollably, without solid mechanisms for burning or reinvesting (which usually direct issues related to token supply and directly influence prices). All of this ultimately led to a sharp decline in the value of internal coins.
Moreover, many of these games had shallow or repetitive gameplay, with little strategic depth or elements that sustained long-term engagement. Without attractive monetary incentive, most users abandoned the game.
The result was a systemic collapse: devalued tokens, emptied communities, and projects that ceased to be economically viable. In retrospect, this cycle served as a warning for the sector: financial rewards do not replace the need for a fun, balanced game with a sustainable economic foundation.
What changes with GameFi 2.0?
The concept of GameFi 2.0 emerges as a direct response to the structural failures of the first cycle of Play-to-Earn games. Instead of exclusively prioritizing the financial aspect — where the focus was on earning tokens quickly and 'cashing out' before the collapse — this new phase seeks to rebalance the fundamental pillars of the gaming experience: quality gameplay, sustainable economy, and genuine community engagement.
One of the most visible changes is the shift from the Play-to-Earn model to Play-and-Earn — that is, financial gain continues to be a possibility, but it is no longer the only or main attraction. The player is encouraged to keep playing because the game is, in fact, fun, challenging, and has significant progression.
Projects like Big Time, Illuvium, and Pixels (which we will tell you more about shortly) are examples of this new approach, featuring enhanced graphics, expansive worlds, and mechanics closer to traditional games — which attract both crypto audiences and long-time gamers.
Another important differentiator is how the new games are structuring their internal economies. Instead of inflating the token supply with daily rewards distributed on a large scale, many projects now adopt dynamic reward systems, deflationary models, and multiple tokens, separating the utility token (in-game) from the governance token (linked to the community and protocol decisions). This helps control inflation and gives more longevity to ecosystems.
Moreover, GameFi 2.0 incorporates best practices of DeFi, such as staking, liquidity pools, and reinvesting earnings within the ecosystem itself, encouraging players to keep their assets in the game longer. At the same time, developers have come to understand that economic sustainability depends on strategic partnerships, inclusion of NFTs with real utility (such as skins, land, or exclusive items), and active community participation in the evolution of projects.
In summary, GameFi 2.0 represents a phase of maturation of the sector, with more focus on usability and the long term. If previously the audience was mostly speculative, there is now a clear effort to also win over players who value narrative, solid mechanics, and an economy that makes sense beyond speculation. And it is precisely this shift that can secure the definitive space of blockchain games in the global gaming industry.
Examples of promising games in 2025
Among the highlights of GameFi 2.0 are projects like:
Illuvium: an open-world RPG with AAA graphics and a strong component of exploration and battles. Besides focusing on gameplay, the reward system is based on staking and tournaments, reducing inflationary pressure on the token;
Big Time: a mix of RPG and NFT collection with utility within the game. With a robust crafting system and internal economy, it seeks to attract both investors and players who value the gaming experience itself;
Pixelmon Reforged: after a controversial start, the project has been restructured and now focuses on gameplay based on its community effect and active governance.
These games are just a few examples of a growing list of projects that seek to unite the best of both worlds: entertainment and real economic value. They illustrate well what GameFi 2.0 means in practical terms.
Here’s the key question: what about traditional gamers?
One of the major barriers faced by GameFi has always been the resistance of traditional gamers, who viewed crypto games as 'pay-to-win' or 'grinders with poor graphics'. The new generation of games seeks to change this perception by delivering immersive experiences, with high-level graphics, engaging stories, and game mechanics comparable to the most popular titles on Steam or major consoles.
Another fundamental point is the reduction of complexity. Many games now allow direct login with a wallet held by the platform, credit card purchases, and integration with more user-friendly marketplaces. In other words, fewer technical barriers for the average player to experience Web3 without realizing they are on a blockchain.
Is it still possible to profit from GameFi?
Yes, but with much more planning. The idea of 'earning just by playing' has lost strength, and today sustainability comes from an ecosystem that includes NFTs with utility, scarce tokens, participation in DAOs, and internal economy based on real metrics (such as time played, skill, and contribution to the community).
GameFi 2.0 projects are less speculative and more grounded. Investors and players now need to understand the economic model behind the game, study the development team, roadmap, and volume of active players. In other words, the game has become more serious.
With all that said: is GameFi 2.0 here to stay?
What we are seeing in 2025 is a reconfiguration of the sector. The initial euphoria has given way to more solid projects, based on user experience, engagement, and economic viability. This is an important step for the GameFi industry to gain credibility and move out of the crypto bubble to definitively win over the gamer audience.
The path still has challenges, such as regulation, prejudice against NFTs, and competition with traditional games. But one thing is certain: those who survive the quality filter and sustainability of GameFi 2.0 may be at the forefront of one of the most promising segments of Web3 in the coming years.
And you, do you have any GameFi 2.0 projects in your portfolio?
#GameFi #PlayToEarn #playandearn #TapToEarn
---
Photo available on Freepik
