The next NFT boom will depend on projects solving the economic pitfalls of the last cycle, and GameFi and art projects face distinct challenges here. GameFi has massive potential if it moves beyond speculative tokenomics. Successful projects will integrate DeFi mechanisms (e.g., staking NFTs for yield) and prioritize player retention through engaging gameplay. For instance, Illuvium’s focus on AAA graphics and strategy suggests a path forward. Investment prospects are strong—GameFi’s market cap grew 20% in 2024—but risks include oversupply of low-quality games and regulatory scrutiny over “earning” models.