How has GameFi Evolved from DeFi in the Web3 realm?

There seems to be a new crypto story every few months. That’s how quickly the market in this area adapts to new trends. Several eras may be identified in the history of the crypto sector since its inception. With the rapid evolution of decentralized culture, the crypto markets have become dominated by DeFi and GameFi

While innovative endeavors are being pursued in other fields, neither the public nor the venture capitalists seem particularly interested in them. Meanwhile, DeFi and GameFi established their economic system within the Web3 realm. 

This brings us to the question: Which of these two ecosystems is the better place to put your money? Well, there is no common ground between them and both have their own perks and benefits. 

However, DeFi and GameFi both are in various stages of development and one of them has a considerably better future than the other. In this article, we will shed some light on how GameFi evolved from DeFi in the Web3 space and how they are transforming into the major technologies of the crypto world.

DeFi and GameFi: What Are They?

Decentralized finance (DeFi) eliminates conventional intermediaries. The primary argument is that smart contracts can guarantee compliance between parties in place of a bank. You can easily avoid spending extra money on middlemen when you leverage blockchain technology and smart contracts instead.  

Borrowing and lending money is a live example of how smart contracts can eliminate the cost of using a centralized party. At present, banks earn their money by lending your assets, while depositors get nearly little return. On the other hand, DeFi has made Peer-to-peer lending possible and the entire interest is paid to you upon receipt of the loaned funds. Prices are determined not by a central bank but by the market. 

DeFi is also widely used for decentralized exchanges where assets may be traded directly between users without the need for a third party (such as a broker). Speaking of trading, you can also visit, to access accurate and real-time market data from the global financial markets and boost your trading activities.

When it comes to the fintech industry, GameFi is quite similar to DeFi in many aspects, but the main distinction is that it takes place entirely inside a game. GameFi includes almost all games with a monetary mechanism. While blockchain and cryptocurrencies are often mentioned in conjunction with GameFi, its history may predate those technologies. 

However, if you don’t own it, game publishers won’t let you sell it, and that’s been GameFi’s biggest challenge without blockchain. The markets that have developed to trade virtual goods have historically been both unstable and unreliable. More and more individuals are switching to GameFi, therefore it must be cutting-edge.

GameFi & DeFi and their evolution

The growing popularity of GameFi and DeFi has made experts believe that its here to stay. To begin, we need to determine where the boundary between GameFi and DeFi lies.

GameFi, in contrast to DeFi, is centered on digital entertainment that makes use of blockchain technology to create games. Here are the top 10 GameFi projects that you can check out to earn big in 2023. 

The developers of these games set out to find ways to integrate blockchain technology’s numerous benefits into the exciting and entertaining medium of video gaming. If we compare GamFi and DeFi in terms of popularity, money, and user base, it would be easy to understand their role in the Web3 space. 

Money Matters

Money and the number of users are usually the most important factors to consider when comparing two popular products. Let’s start with cash: how much is now being put in, and how much can be made in the long run. 

The simple response would be that DeFi will win because, as its name suggests, it is here to replace traditional financial institutions like banks. Despite your optimism toward cryptocurrency, you must face the reality that this is not going to materialize anytime soon. Considering the amount of money that any of these sectors may reasonably raise makes the situation a lot more precarious. A few issues remain, however.

At the outset, whereas GameFi communities are concerned with the overall success of the project, DeFi communities are solely concerned with making a profit. Due to the diverse character of the localities, investors have flocked to DeFi in search of high crop yields and financial rewards. GameFi players, on the other hand, care more about the atmosphere and the friendships they may form than about winning. These players are likewise concerned with the legal status of the in-game goods they acquire.

Both groups are looking to make a profit, but GameFi players are more inclined to reinvest their winnings in the game or the developer behind it. When farmers in DeFi see a profit, they frequently sell their crops immediately, which might cause price fluctuations.

Clientele And Recognition

While financial success may have given DeFi the edge, user engagement and brand recognition were up for grabs. As you may have observed from reading the news, the tide seems to be turning in GameFi’s favor. However, whereas there are always fresh headlines regarding the expansion of GameFi and NFTs, DeFi articles often focus on how none of the tokens have changed value in the last year. 

The number of people using GameFi now exceeds that of DeFi. Currently, games make up 52.4% of total DApp use, whereas DeFi barely accounts for 34.7 %.

As the report’s second fascinating set of data shows, DeFi’s activity has decreased along with the global macro trend. Conversely, gaming activity shows no signs of slowing down despite the recent decline in bitcoin and stock values.The latest survey, Absolute Reports indicated that GameFi would grow into a $2.8 billion industry in the next six years

One of the best things about GameFi is that it isn’t designed to help the super-rich become richer. This is a method for regular gamers to get more out of their gaming experience via things like asset ownership and the possibility of monetary gain from their hobby.

Utility And Development

Comparing GameFi and DeFi on what they can offer, its fair to say that games are easy to create compared to DeFi platforms. Thats because there arent rules or restrictions hindering creativity.

If we look at games from only a couple of years back, well see significant developments have been made such as improved graphics, user interface, and everything else. 

On the other hand, DeFi developments are a lot more difficult to implement as there are many regulations and laws that surround this sector. Also, its a massive market of financial products that prompt regulatory authorities to speculate about the crypto space. 

Combine that with collapses and bankruptcies in 2022 that shook the DeFi space to its core, and you will get the answer to why investors see GameFi as a safe venture.

The one key difference between DeFi and GameFi is the understanding of users. While most DeFi users have an advanced understanding of crypto, investing, and financial technology, GameFi users are more inclined towards gaming and community. Needless to say, GameFi users are equally interested in financial rewards as well.

Hence, the development and utility of GameFi and DeFi depend on how both communities perceive these concepts in the long run. 

Also Read: SocialFi: Evolution of Social Media Platforms


The core of GameFi was captured in the first blockchain games. DeFi and NFTs, however, have changed the game by providing participants with a new way to make serious money. 

Developers will continue to combine these ideas to provide more lucrative opportunities for players in the future. It stands to reason that with the type of buzz, GameFi is creating and keeping, more exciting games will be made, which in turn will entice additional investors to the DeFi sector.