GameFi refers to financial trading related to blockchain games. It is a new umbrella term and so the meaning can slip a bit. Play-to-Earn (P2E) is a sub-set of GameFi. The term also covers NFT trading connected to a game, staking schemes, liquidity pools, and yield farming tools related to a game.
NFTs as tradeable game assets
Most blockchain games have built-in technology that enables players to buy and sell game-related assets such as clothing, weapons, land, and vehicles. Some games, such as The Sandbox, encourage players to build these assets and sell them to other players.
