The Soaring of NOT Drives the Explosion of GameFi, Where is the Future Trend Password?

2024-06-07, 16:07

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![](https://gimg2.gateimg.com/image/article/1690791857hotspot.jpeg)
## [TL；DR]: 
The 5-fold increase in NOT has driven up several low-to-medium market value GameFi tokens, making the long-suppressed GameFi track a recent hot topic.

The launch of <a href="/ja/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETF and <a href="/ja/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETF has attracted increasing numbers of crypto users. This kind of GameFi track that integrates traditional finance and Internet features has provided a basis for its outbreak.

The GameFi sector is gradually becoming the focus of the cryptocurrency market. Although many project token prices are still in a low range, its sustained growth trend and potential market opportunities make the GameFi sector worth long-term attention.

## Introduction
The GameFi sector, which has been suppressed for a long time, has finally started this week, with NOT, ALICE, PORTAL, PIXEL, and others all leading the way in terms of gains.

Why has the GameFi sector, which has always been at the bottom, yet to be able to take off like AI, DePIN, MEME, and other sectors? Will the recent rise continue? This article will provide you with a comprehensive interpretation of the GameFi track.

## The Rise of NOT Drives the Recovery of the GameFi Sector
Recently, the Notcoin (NOT) project has undergone a significant transformation from being a simple and straightforward game on the Telegram platform to receiving high attention from mainstream cryptocurrency exchanges and funds. Its most prominent highlight is the launch of up to 18 exchanges, including Gate.io, on May 16. It was fully circulated at the beginning, sparking a wave of Altcoin games similar to Click to Earn.

According to public data, Notcoin, as the first "surging" project in the Telegram ecosystem, has quickly attracted many users since the beginning of this year with its unique MEME attributes and simple Tap to Earn gameplay. Within a week of its launch, it gained 5 million users, with a peak daily active user count exceeding 6 million, demonstrating its strong market appeal.

Despite its recent surge, NOT's 24-hour trading volume reached $4.67B on Monday, ranking fourth on the entire network, only behind USDT, BTC, and ETH.

![](https://gimg2.gateimg.com/image/article/17177763241.jpg)
Source: Gate.io

The sustained surge in NOT has also quickly driven the overall recovery of the GameFi industry, with a plethora of GameFi tokens, such as PIXEL, PORTAL, IMX, ALICE, RACA, etc., filling the gap.

According to CoinGecko's data statistics, the market value of the GameFi sector has risen to $24B as of the writing date, with a growth rate of 7.5% in the past seven days, accounting for 0.59% of the overall cryptocurrency market value.
![](https://gimg2.gateimg.com/image/article/17177763432.jpg)
Source: CoinGecko

However, the market has different voices regarding whether NOT can continue its upward trend. Among them, the support of major exchanges and TON undoubtedly provided an important impetus for the rise of NO.

In addition, the Notcoin project reduces the circulation supply through its collateralizing function, and the token destruction carried out by the ecosystem project party is also one of the main reasons for its price increase. According to statistics, approximately 18 million NOT (valued at approximately $0.35M) have been burnt and permanently withdrawn from circulation, reducing market selling pressure. @CryptoStreamHub, a member of the crypto community, pointed out that although the current burning number may seem small, investors may expect more burning actions in the future, which will positively impact the price of NO.

However, no matter what, the frenzy of NOT's weekly increase of over five times has finally driven up several low to medium-market-value GameFi tokens. What are the highlights of the long-dormant GameFi?

## MEME GameFi May Become a New Trend after Axie 
It is easy to find that the GameFi sector lacks a new project that can lead the market like the previous bull market's <a href="/ja/price/axie-infinity-axs" target="_blank" class="blog_inner_link">Axie Infinity</a>, which is an important reason why the GameFi sector has been stagnant.
![](https://gimg2.gateimg.com/image/article/17177763713.jpg)
Source: AXIE

In the current market environment, investors generally tend to pursue innovative projects because new projects often attract widespread market attention. If a strong-performing new currency can emerge in the GameFi sector and continue to show an upward trend, then the entire GameFi sector is likely to rise accordingly, just like the driving role of PEPE in the MEME sector. Therefore, GameFi is a potential area worth long-term attention.

If we take a current perspective, we have caught some clues. AAA-level GameFi are still ascending, while MEME GameFi, on the other hand, have shown a new narrative prototype due to their low participation threshold, community emotional genes, and ease of dissemination. The trigger for this round of GameFi surge is not only the native Notcoin game mentioned earlier but also the recent scene of individual investors fighting institutions on the US stock market GameStop, which is enough to be on par with the emotional contagion of cryptocurrency communities pursuing fairness.

On June 3, Roaring Kitty, the king of retail investors, returned after a three-year hiatus. He posted a screenshot of his position on Reddit which showed Roaring Kitty holding GME stocks and GME call options, with the call options expiring on June 21, 2024. Roaring Kitty posted a "flip card" in a UNO card game on Twitter, sparking market discussions. GameStop related tokens such as GME and KITTY saw a short-term surge.
![](https://gimg2.gateimg.com/image/article/17177763954.jpg)
Source: Reddit

Upon closer examination, we can connect such clues. With the launch of Bitcoin ETFs and Ethereum ETFs, more investors are shifting their attention from the US stock market to the cryptocurrency market, and people's speculative enthusiasm for GameStop has quickly spread to the GameFi sector. Meanwhile, Web2 users on Telegram have also quickly been stimulated by the Notcoin game on the TON chain. This increasing adoption rate of cryptocurrency reality has led to more interesting gameplay dissemination, which is also the background of the recent strong rise in GameFi.

## GameFi Have not Yet Fully Exploded, Highlighting Growth Potential
In summary, we attribute the collective rise of the GameFi sector to the following driving forces.

Firstly, the continuous progress of blockchain technology provides solid technical support for the development and operation of decentralized games, including MEME games and full chain games integrated with AI, which have greatly improved in terms of playability and scalability.

Meanwhile, as players' awareness and acceptance of this new type of game form continue to increase, market demand continues to grow, thereby driving the collective rise of the GameFi sector.

Secondly, community driven ecosystem construction is also an important driving force for the rise of GameFi. Many MEME GameFi projects focus on community building, attracting and retaining users through scholarships, educational resources, and various activities. This model enhances user stickiness and loyalty, and improves the project's risk resistance ability.

Furthermore, because GameFi applications are more likely to capture more traffic value, many public chains, exchanges, and VCs are beginning to tilt their resources toward GameFi in various aspects.

Taking Notcoin's successful launch as an example, its success naturally cannot be separated from the official support of Telegram, which has a high user base of 35 million. However, it has launched a “click-to-earn” viral marketing approach with extremely low participation barriers in the form of MEME, which is popular in the community. This not only demonstrates the decentralization and autonomy of community coins, but also enhances the traffic value of the TON chain, which helps to encourage more game projects to try new development models.
![](https://gimg2.gateimg.com/image/article/17177764285.jpg)
Source: token terminal

It is worth noting that despite the recent strong performance of the GameFi sector, investors still need to be vigilant about the risks involved. Especially after observing today that the GameFi sector has started to see a sharp rise and is entering a trend of adjustment, investors should be cautious and avoid mindlessly following the trend. Meanwhile, if new projects emerge in the ecosystem in the future, it may diversify market liquidity. Investors need to monitor the market dynamics and adjust their investment strategies on time.

The GameFi sector is gradually becoming a market focus, but many project tokens are still in a relatively low price range and have yet to experience a comprehensive outbreak. We look forward to its sustained growth trend and will explore more projects with growth potential.

<div class="blog-details-info">
<div>Author:**Carl Y.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>