Earning in Blockchain Games: The Complete Guide to GameFi in 2024

Imagine a scenario: you earn real income just by having fun. This is no longer a fantasy. Thanks to the development of blockchain technologies, the gaming industry has undergone revolutionary changes, creating opportunities to monetize entertainment at a completely new level.

Understanding GameFi: what does it mean?

GameFi meaning (The meaning of the term GameFi) combines two concepts — gaming and finance. It refers to blockchain applications that integrate cryptocurrencies, non-fungible tokens (NFT), decentralized finance (DeFi), and distributed ledger technology within a gaming ecosystem.

Unlike traditional video games, where developers are the sole beneficiaries of monetization, blockchain games allow players to earn rewards for active participation. A player can earn in-game currency by completing quests, leveling up, or creating unique digital assets, which can then be exchanged for real money on cryptocurrency markets.

Market size of GameFi in 2023-2024

According to DappRadar for Q3 2023, the blockchain gaming industry remains the leading segment of the decentralized application ecosystem. Investments in Web3 game projects and metaverses reached $2.9 billion in 2023, demonstrating sustained investor interest.

The first quarter of 2024 saw explosive growth:

• The number of unique active wallets in the Web3 segment reached 7.7 million — a 77% increase compared to the previous period
• Blockchain games accounted for 30% of all active wallets with 2.1 million unique addresses, reflecting a 59% growth

Evolution of GameFi: from Bitcoin to modern times

The first attempts to integrate gaming and cryptography date back to the Bitcoin era. Enthusiasts played browser games on various platforms associated with the first cryptocurrency, earning BTC for completing simple tasks.

However, scaling on the Bitcoin blockchain proved impossible due to architectural limitations — narrow block windows, slow processing speeds, and prohibitively high transaction fees made the system unsuitable for frequent gaming operations.

Ethereum, built on smart contracts, temporarily solved this problem. But the pivotal moment came in 2017 when the game Cryptokitties caused such traffic volume that it overloaded the Ethereum network, sharply increasing gas fees. This marked a turning point.

Today, the decentralized landscape includes Polygon, Solana, BNB Chain, Avalanche, Ronin, and other blockchain platforms offering alternative solutions with higher throughput, lower fees, and fast transaction processing. Polygon led in Q1 2024 thanks to the Inevitable Games Fund initiative, while Solana and Ronin demonstrated resilience and innovative approaches in developing gaming ecosystems.

How GameFi mechanics work

Despite the variety of game designs, all blockchain projects follow similar earning principles:

Earn on in-game assets: virtual land, avatars, costumes, weapons, and other NFTs can be traded on open marketplaces for real money.

Asset ownership is secured by blockchain: thanks to immutable public ledgers, ownership rights for each digital asset are documented and indisputable. Even if the gaming platform encounters technical issues or attacks, your assets remain protected.

Earning models in GameFi

Play-to-Earn (P2E)

A classic model where players receive tokens and NFTs for progress, victories, and achievements. Axie Infinity is a flagship example: players breed digital creatures (Axies), participate in battles, and earn tokens Smooth Love Potion (SLP), which are exchangeable on major crypto exchanges.

Move-to-Earn (M2E)

A revolutionary approach that incentivizes physical activity. Stepn is a prime example: users earn GMT tokens for walking or running in the real world using NFT sneakers. It’s not just a game; it’s an investment in one’s health.

Tap-to-Earn (T2E)

A minimalist format for maximum accessibility. Notcoin allows any smartphone owner to mine virtual coins by simply tapping the screen, without requiring special knowledge or initial investments.

DeFi components in GameFi

The integration of decentralized finance has opened the door to passive income. Players can:

• Stake rewards on smart contracts to earn interest
• Participate in gaming guilds (like Yield Guild Games), renting assets and sharing profits
• Lock in earnings through long-term locking of NFTs and tokens

Step-by-step guide: how to start earning

Step 1. Create a cryptocurrency wallet

Choose a wallet compatible with the blockchain on which your selected game operates. For Ethereum-based applications, MetaMask or similar solutions are suitable. Important: create a separate wallet specifically for gaming operations to isolate gaming assets from your main funds.

Step 2. Decide on your starting capital

Many games are free to play, but to start actively earning, you may need to purchase initial NFTs (characters, gear, land plots). The investment amount varies from a few dollars to thousands depending on the project.

Step 3. Start completing game tasks

Earn in-game currency through regular gameplay, competitions, and creating unique assets.

Why GameFi is gaining popularity

Real earnings from hobbies

If gaming is your passion, GameFi turns entertainment into a source of income. Both active and passive, through staking and asset leasing.

True ownership of digital assets

In traditional games, you are just a license user. In GameFi, you are the owner. No one can take away your assets, delete your account, or make unauthorized changes. Blockchain guarantees your rights.

Community governance

Unlike centralized studios, blockchain games are often managed by community voting. Your voice matters in decision-making regarding ecosystem development.

Low entry barrier

Many projects operate on a free-to-enter model. You don’t need an expensive console or high-performance computer — a smartphone with internet access is sufficient to get started.

GameFi development forecasts for 2024 and beyond

Analysts predict significant sector growth. The share of GameFi in the global video game market is forecasted to reach 10% by the end of 2024 (up from the current 3%), confirming growing interest.

Factors supporting growth:

• Implementation of Layer 2 solutions to increase scalability and reduce fees
• Integration of artificial intelligence to create smarter game mechanics
• Development of cross-chain compatibility, allowing assets to migrate between ecosystems
• Expected to attract up to 50 million active participants, expanding accessibility across various devices

However, development will not be without challenges. The industry must balance blockchain innovation with game quality, avoiding excessive technical complexity at the expense of gameplay.

Conclusion

GameFi is a more than promising direction, combining economic viability with entertainment. The development of blockchain infrastructure, widespread adoption of cryptocurrencies, and the emergence of new projects will inevitably expand the player base and transaction volume in the sector. Every cryptocurrency market user can find a suitable project and start earning by playing.