• This is why industry insiders see GameFi as the future of DeFi

  • GameFi was created to serve as a one-stop shop for blockchain gamers and investors. Many insiders in the gaming industry compare the game finance ecosystem to DeFi.

    In a recent podcast, Kieran Warwick, co-Founder of gaming platform Illuvium, explained how GameFi will fare against DeFi. According to him, the addressable market for DeFi is constrained by population. On the contrary, he stated,

    “The DeFi game is our addressable market, which is around three billion people.”

    He went on to say that nearly half of the world is involved in gaming, despite the fact that many people dismiss DeFi as being too “complex.” Furthermore, Warwick believed that bringing people into the crypto space was an opportunity for companies such as Axie Infinity. In terms of new investors, he stated,

    “I believe it is a matter of bringing them in… They’re going to start using cryptocurrency without even realizing it.”

    As a result, he predicted that gaming will win in the short run due to increased engagement in the indie games segment. DeFi, on the other hand, will take over over a longer period of time. Gabby Dizon of Yield Guild believes that DeFi and GameFi go hand in hand in this context. He stated,

    “GameFi is the financialization of games, while DeFi is the gamification of finance.”

    He went on to say that combining the two would result in play-to-earn and a metaverse in which people own assets across multiple gaming experiences. According to some estimates, the metaverse universe’s market cap will be around $300 billion by 2025.

    Community and adoption

    Some observers, such as Loot Squad’s Bryce Johnson, believe that DeFi will rely on gaming to “provide long-term sustainability.” This essentially means that for many people, gaming may be their first foray into banking.

    The gaming industry is gaining traction, with an estimated 41.9 million gamers owning cryptocurrency. In terms of revenue, the crypto gaming industry is expected to generate $321 million by 2020. Moving forward, according to a recent report, the global gaming market will be worth around $178 billion by 2021.

    The DeFi space, on the other hand, is currently close to a $95 billion industry. However, the DeFi industry’s growth estimates are exponential, with some predicting a $1 trillion market by next year.


    Meanwhile, institutional investors are increasingly interested in crypto assets, particularly in the DeFi sector. According to Blockdata data, blockchain companies in general have attracted the highest levels of funding from venture capitalists in 2021.

    Axie Infinity, a gaming company, raised $152 million in funding this month. Huobi Ventures had previously launched a $10 million fund for GameFi Projects.


    Johnson predicted that while there will be several new entrants in the gaming sector in the near future, there will be no winners or losers. However, with some blue-chip companies, that could change in the next 20 years, he added. Dizon, on the other hand, believes that the future of work will be in the metaverse.

    Overall, industry insiders appear to be bullish on Axie’s future. Furthermore, the entry of new players such as Microsoft Xbox, Twitch, G2A, and other NFT marketplaces is increasing competition. While companies such as Axie Infinity, Gods Unchained, and CropBytes have grown in popularity.

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