GameFi Crypto’s Second Coming Is On the Horizon – Are You Ready?

If 2021 was GameFi 1.0 built on promises, 2025–26 is GameFi 2.0 built on product.

In this article, we’ll explore how the speculative hype of 2021’s play-to-earn boom gave way to a crash, what lessons set the stage for a new wave of sustainable GameFi crypto projects, and why new titles like Pikamoon ($PIKA) are being introduced as proof that crypto gaming’s comeback is real.

GameFi 1.0’s Hype, Boom, and Bust (2021–2023)

During the peak of the 2021 bull run, blockchain-based games with play-to-earn features were all the rage in the crypto world.

At the time, Axie Infinity, often considered the flagship of GameFi 1.0, had about 2 million daily active users and made hundreds of millions of dollars. Investors and players collectively flocked to the site because they were told that playing games could literally pay the bills.

But this excitement didn’t last long.

A lot of early GameFi economies were based on token models that didn’t work. These were essentially Ponzi schemes that needed to churn out new players all the time.

Reality caught up by 2022–2023. Axie Infinity’s user base dropped from about 2 million in 2021 to about 200,000 in 2025 because the play-to-earn rewards weren’t as appealing anymore. Axie’s AXS token is down ~98% from its late-2021 all-time high, Illuvium (ILV) is down 99%, and The Sandbox (SAND) is down over 90%.

In short, GameFi 1.0’s boom turned to bust, leaving behind hard lessons about overhyping “play-to-earn” without solid fundamentals, shallow gameplay, token hyperinflations, and more.

GameFi 2.0 – From Promises to Play (2025 and Beyond)

Fast forward to 2025, and the industry has absorbed many lessons of the bust. A “GameFi 2.0” movement is taking shape.

What’s different this time? In a word – quality.

• Gameplay First: Developers are designing games that could stand on their own in the traditional (Web2) gaming world.
• Sustainable Ecosystem Economies: GameFi 2.0 games don’t just keep making tokens as rewards. They use deflationary or dual-token models, controlled emissions, and in-game sinks for tokens.
• Web2-Style Project Onboarding: GameFi 2.0 projects aim to make the user experience smoother with one-click logins, custodial wallets, or easy email sign-ups. This means that the user doesn’t even need to know anything about blockchain to play.

With fresh liquidity coming into crypto as markets recover, there’s a sense that GameFi is a coiled spring poised to surge again (some estimates suggest GameFi could cross $300+ billion by 2030), but only for those projects that get it right this time.

Pikamoon – Proof of GameFi 2.0

Branded as an upcoming AAA blockchain game with a battle royale twist, Pikamoon markets itself as evidence that crypto gaming’s best days are ahead.

Here’s how Pikamoon exemplifies the new GameFi narrative:

1) AAA Gameplay & A Usable Product: Built in-house on the popular Unity-6 engine, Pikamoon’s flagship title PikaRoyale is essentially a melee-first battle royale with Pikamoon companions as active combatants. 

An alpha version will ship in Q4 2025, and a full Steam release is slated for 2026 with consoles and mobile releases to follow in the next few years.

The team envisions expanding into ranked battleplay, seasonal trials, and an open world by 2030 as well.

2) Sustainable Tokenomics Promising Scarcity & Upside: The project’s native token $PIKA is designed with deflationary mechanics to ensure that its value keeps appreciating. Every sell transaction of $PIKA carries a small burn (0.5%), steadily reducing supply and rewarding long-term holders. 

More dramatically, Pikamoon’s recently concluded migration from Ethereum to Solana introduced a one-time supply shock of removing approximately 15% of tokens from the supply (that were not bridged by the September 26th deadline).

3) Easy Onboarding: In an effort to lower the barrier for mainstream gamers, Pikamoon has set up a dual-layer approach via its PIKAHUB portal. Casual players will be able to download PikaRoyale and play it like a normal game, no crypto wallet required, no upfront NFT purchases.

Meanwhile, the Web3 elements (such as trading $PIKA, minting or buying character NFTs, staking for rewards) live in the PIKAHUB, a separate interface that integrates with the game. This means players opt in to crypto only if and when they want to.

An Unmissable Second Act of GameFi

GameFi’s first act may have ended with a whimper, but act two is gearing up to be a far more compelling story. Leading that momentum is Pikamoon, which could possibly be one of the few winners of GameFi 2.0.

For retail crypto investors, the window of opportunity is here and now. Join the Pikamoon Telegram, follow them on their official X account, and be ready to buy $PIKA on relaunch.