With so many types of blockchain games, how do you choose? Here's how to use this logic to filter out truly profitable projects.

Since the start of 2024, the popularity of the GameFi track continues to soar, as evidenced by new project funding on mainstream platforms like Binance—just in the new year, nearly half of the new projects are related to GameFi, including AI companion game Sleepless AI, Layer3 gaming blockchain XAI, farm-type Pixels, and cross-chain gaming platform Portal, among others. It can be said that whether or not you have paid attention to GameFi, this wave has already thoroughly shifted market attention in this direction.

So, the question facing investors becomes more acute: the GameFi track seems vibrant and promising, but very few projects are truly worth participating in. How can one identify those with genuine growth potential among many options? This article will clarify this seemingly chaotic market from three dimensions: track structure, investment logic, and practical strategies.

The Three Pillars of the GameFi Ecosystem

To understand the GameFi track, first recognize the three core participants within the ecosystem.

First Layer: Infrastructure Layer—Game Public Chains

Game public chains are the foundation of the entire GameFi ecosystem. They provide developers and players with efficient, low-cost blockchain environments. Common representatives include IMX, Ronin, and Gala. These public chains optimize performance and reduce transaction fees, directly solving the problem of traditional blockchains being unable to support large-scale gaming user bases. The investment logic for game public chains is simple: the more prosperous the ecosystem, the more valuable the infrastructure.

Second Layer: Organization Layer—Game Guilds

The evolution of Game Guilds is quite interesting. Initially, they were informal organizations of players sharing game experiences and tips. But with the rise of Play-to-Earn, these guilds have evolved into formal entities: NFT asset leasing, game boosting, skill training, and other services emerged. Eventually, they issued tokens via DAO structures for fundraising, and some guilds have grown into professional investment organizations. The development trajectories of projects like YGG, GF, and Ancient8 are clear evidence. Guild-based investments tend to be lower risk because their income sources are diverse and relatively stable.

Third Layer: Application Layer—Game Products Themselves

Game products are ultimately what attract players and generate cash flow, and they are also the main focus of investors.

Game Types Determine the Ceiling of the Track

Different game types perform very differently within the GameFi ecosystem, even deciding the success or failure of a project.

The Two Most Explosive: RPG and FPS

These two genres are currently mainstream and highly competitive. But because of fierce competition, this field is more likely to produce blockbuster projects. RPG games usually have complete storylines and immersive experiences (e.g., Seraph, Bigtime, Lumiterra), while FPS games excel in real-time combat and high responsiveness (e.g., Matr1x Fire, Shrapnel, Xociety). The entry barriers for these genres are high—requiring top-tier teams, AAA quality, and large funding. Because of this, once successful, their returns and influence are on a different level.

Moderate Potential: Strategy and Sandbox Games

Strategy games (Heroes of Mavia, Gas Hero, BlockLords) and sandbox games (Pixels, Hytopia, Sandbox) have smaller audiences and limited market size, but due to a more concentrated player base, community engagement tends to be stronger. These are suitable for investors seeking stable returns rather than explosive growth.

Easily Overestimated Niche: Simulation and Card Games

Simulation games (Xpet, Him, Vmates) and card games (Parallel, Degen Game, Anome) have the smallest user bases and lowest explosive potential. While occasionally a dark horse appears, overall, these tracks carry less attractive risk-reward ratios.

Practical Advice: If you want to make money in GameFi, focus on RPG and FPS tracks, as projects in these areas generally have higher quality, larger funding, and are more likely to gain market recognition.

Three Hard Indicators to Judge if a GameFi Project is Worth Investing

When evaluating a specific project, consider these three dimensions:

Funding Scale and Fundamental Correlation

If a GameFi project has raised over $10 million, it usually indicates that its fundamentals have been validated by capital, providing sufficient funds to ensure game quality. Projects with smaller funding need to demonstrate outstanding performance in other areas to justify risk.

Founding Team Background: Determining the Project’s Ceiling

In today’s environment of limited innovation, most GameFi projects are Web2 game IP migrated to blockchain. In such cases, storytelling ability becomes a decisive factor. Ideally, projects would have classic IP and a core team (e.g., Seraph with a dark fantasy background). But such projects are rare. Therefore, examine team members’ resumes: at least 5+ years of game development experience or core members who have contributed to Web2 hit games. The deeper the team’s background, the more reliable the project’s execution.

Game Quality: The Self-Rescue Chip

If a project lacks a halo or brand, then the game quality must be top-notch—at least AAA standard. Developing such high-quality games is difficult and costly, but it also serves as a safety signal—less likely to be abandoned hastily.

Decision Model: When a project meets any two of these three factors, it has the potential to become a phenomenon-level project. Combining this with playability assessments and community enthusiasm analysis, investors can make more rational judgments.

Three Investment Paths in GameFi and Risk-Reward Analysis

GameFi investment is not one-size-fits-all; different approaches entail different risk-reward profiles.

Path 1: Buying Tokens—Lowest Barrier, Moderate Returns

Purchasing project tokens on exchanges after listing is the simplest method. Note that over 50% of the token supply in most GameFi projects is generated through in-game output, meaning secondary market buyers are essentially buying from players. Risks are moderate, but profit margins are limited.

Path 2: Investing in NFTs—High Risk, High Barrier, Limited Capacity

Investing solely in NFTs without participating in gold farming seems to promise large gains, but in reality, it offers the lowest cost-effectiveness. NFT liquidity is limited; if the project fails, assets could become worthless. Additionally, the limited number of NFTs caps potential investment scale, making the barrier higher than buying tokens. Overall, high risk, limited capacity, and uncertain returns make this less recommended as a primary strategy.

Path 3: Participating in Gold Farming—High Returns but Highest Barriers

This is the approach with the greatest potential reward but also the highest requirements. The most profitable period for GameFi projects is often during early testing phases, when participation is low and outputs are concentrated. Early players can earn dozens of times their investment through token yields, NFT appreciation, airdrops, and revenue sharing.

But high returns are reserved for a few. To be among them, you need to:

1. Deep Research: Multi-dimensional assessment of project prospects and estimated earnings
2. Tactical Planning: Clear gold-farming strategies for maximum efficiency
3. Time and Skill Investment: Evaluate how much time and gaming skill you can dedicate

This explains why early users of some Layer2 public chains can reach hundreds of thousands, while early GameFi participants are only in the thousands—most investors lack research ability, gaming skills, or time to spend over 5 hours daily playing.

Summary: Find the Participation Method That Suits You

The essence of the GameFi track remains gaming. Whether as infrastructure (game public chains), organizers (guilds), or content creators (game projects), they all compete for the same users’ time and funds.

For different investors, choices should be based on personal capacity:

• If you have limited time but strong research skills, buying tokens is the most practical
• If you are willing to hold long-term and believe in a project’s ecosystem, investing in game public chains or guild tokens makes sense
• If you have time, gaming talent, and deep research ability, participating in gold farming can yield the highest returns

Regardless of the path chosen, the GameFi track is still in its early stages, with opportunities and risks coexisting. The key is to thoroughly understand your own strengths and weaknesses before making a decision.