@marybonenfantsm
Capital rotation from GameFi to DeFi reflects changing investor priorities and market maturity. Many GameFi projects struggled to sustain user bases after initial hype, leading to declining revenues and token performance. In contrast, DeFi protocols continue to demonstrate strong utility through lending, trading, and yield generation. DeFi offers more predictable revenue models and opportunities for institutional adoption, which attracts long-term capital. Additionally, regulatory developments around tokenized real-world assets and stablecoins have strengthened DeFi’s investment case. While GameFi remains a niche with potential, investors view DeFi as a more stable sector, capable of weathering market cycles and delivering sustainable value growth.