ZKcandy
ZKcandy enables lightning-fast, low-cost gaming on Ethereum. ZKcandy

KEY POINTS

  • GameFi's asset ownership and the ability to move these assets helped drive interest in the segment
  • With technical barriers eliminated, GameFi has reached the stage where it is prepared to go mainstream: ZKCandy CEO
  • Blockchain gaming is faced with competition from AI-driven apps, but interest from traditional studios can help GameFi hold its lead

Blockchain gaming saw massive growth last year, with GameFi – a new gaming segment powered by blockchain technology wherein decentralized games and virtual economies are created – showing much promise among other Web3 gaming segments.

In 2025, things are about to get bigger for GameFi as long as it can keep its momentum from 2024 and overcome competition from other rising segments within the broader Web3 gaming sector.

In an exclusive with International Business Times, Kin Wai Lau, the CEO of ZKcandy, the first gaming-centric Layer 2 (L2) chain powered by ZKsync, discussed his outlook on the GameFi segment and which trends will shape the future of the emerging industry.

GameFi's Evolution and Road to Mainstream Adoption

The concept of making money from gameplay is not entirely new, but GameFi upped the ante when it presented a way for players to own in-game assets either via non-fungible tokens (NFTs) or crypto tokens that can be sold or traded freely.

GameFi, in its early days, was technically a combination of gaming elements and the asset allocation principles around decentralized finance (DeFi). While early projects were focused on money-making aspects, it appears that many developers in the segment have learned from earlier mistakes.

More games have been working around improving gameplay and providing interactive and immersive experiences for players.

In the third quarter of 2024, blockchain gaming accounted for the majority of all decentralized app (dApp) activity, logging 4.4 million daily active wallets – a figure that's more than any other Web3 sector. At the center of it all is GameFi.

For Lau, GameFi can grow further this year. "I believe GameFi has every chance to keep the momentum in 2025. Account and chain abstraction technologies have helped the sector mature – now that the technical barriers are removed, GameFi is ready for mainstream adoption," he said.

Mainstream adoption is the most crucial aspect of growth in blockchain gaming, considering the massive user base that Web3 games can reach once they go mainstream.

This year, Lau expects results from massive investments in blockchain game developments in the last few years, noting that AAA products – games distributed by major or mid-sized publishers – need a couple of years to build titles.

What Will It Take for Traditional Studios to Jump In?

Lau observed that in recent months, traditional gaming studios have been warming up to We3 "as its benefits grow and the barriers shrink."

Blockchain gaming and GameFi's unique offering of true asset ownership and the ability to transfer or move the assets between compatible ecosystems is a huge benefit that traditional studios have recognized.

"Chain abstraction has cut the cost of using Web3 products dramatically – players often don't need to create wallets, sign transactions, or even pay gas fees anymore. With these hurdles gone, blockchain's advantages are becoming clear, drawing attention from major gaming studios," he added.

ZKcandy's Unique Role in Advancing GameFi

Notably, ZKcandy is the only L2 platform that brings the power of two powerful teams in unity: seasoned blockchain builders (Matter Labs, the inventors of ZKsync) and major traditional game developers (iCandy).

Lau explained that the combination of the two helps the ZKcandy team match the best technology with what gamers really want, that is, the development of products that excel both in tech and UX, or the overall experience that players have when playing a game.

Furthermore, there's ZKcandy's connections. "Our connections with IP (intellectual property) owners also helps us secure unique partnerships to launch in-demand games based on popular movies and entertainment franchises," he said.

ZKcandy strongly believes that blockchain should be easy to use for both players and developers. With this belief driving operations, it stellar results to show: 2.4 million wallets in its testnet phase and AAA brands such as Animoca Ventures joining its seed funding round.

The Future of GameFi

GameFi is growing and evolving as blockchain innovations emerge. It has much potential to shine in the broader blockchain industry, but challenges remain.

"GameFi will face strong competition from Web3's AI sector," Lau projected.

In DappRaddar's State of Blockchain Gaming in Q3 report, it was revealed that AI-driven apps are starting to challenge Web3 gaming's dominance.

On the other hand, Lau believes that as long as GameFi firms get the interest and attention of traditional gaming studios, it could help the segment "hold its lead" and possibly, make 2025 a big year in terms of growth.

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