The trajectory of blockchain adoption in the Philippines is uniquely characterised by the dominance of play-to-earn (P2E) gaming and non-fungible tokens (NFTs), finds the Philippine Blockchain Report 2025, prepared by Gorriceta, the Blockchain Council of the Philippines, Gobi Partners, Gobi-Core Philippines Fund, and Tether.
Unlike many Western markets where blockchain began as an investment curiosity, in the Philippines, P2E gaming evolved into a crucial economic lifeline during the pandemic, giving rise to the ‘Metaverse Filipino Worker’ (MFW) and establishing a powerful engine for grassroots Web3 entry.
Economic necessity spurs mass adoption
Before the pandemic, blockchain adoption was mainly concentrated in financial services. However, market dynamics shifted dramatically when COVID-19 lockdowns forced many Filipinos to seek alternative sources of income. P2E games offered a viable solution, allowing individuals to generate income in the form of digital assets and cryptocurrencies.
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Crucially, the income potential from these games often exceeded the country’s minimum wage, underscoring their significance as a valuable economic tool.
The primary catalyst for this shift was Axie Infinity, a game founded by Vietnamese startup SkyMavis. The game gained immense popularity in the Philippines, with Filipino players accounting for approximately 40 per cent of its global user base. This high engagement level necessitated the development of local infrastructure to support and scale P2E participation.
Ecosystem builders: YGG and decentralised guilds
The emergence of decentralised gaming guilds like Yield Guild Games (YGG) was instrumental in accelerating this grassroots adoption. Founded in 2018, YGG operates as a Decentralised Autonomous Organisation (DAO) that pools investors’ funds to acquire costly in-game NFTs and assets. This model allowed players, many of whom could not afford the initial investment, to borrow these assets (often referred to as scholarships) and earn real financial rewards.
YGG’s success demonstrated the sector’s international potential, securing US$4.6 million in funding from A16z in 2021. The guild system effectively lowered the barrier to entry for tens of thousands of users, integrating them into the Web3 ecosystem through a highly tangible economic incentive.
The industry continues to evolve, as seen in the pivot of Sovrun (formerly BreederDAO). Initially focused on providing in-game assets, Sovrun transitioned in 2024 to a platform that empowers players to own digital assets and shape their virtual worlds, focusing on broader digital ownership beyond just P2E mechanics.
Gaming’s gateway effect on perception
The strong association with gaming has profoundly shaped how Filipinos interact with and perceive blockchain technology. Survey results confirm that for active users, online games (45 per cent) and social media platforms (49 per cent) are top activities, surpassed only by trading (62 per cent) and payments/remittances (49 per cent).
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Despite the high usage rate in gaming, overall knowledge remains low. Cryptocurrency is the most recognised application (82 per cent awareness), yet awareness of broader applications like Smart Contracts (47 per cent) or Intellectual Property Management (41 per cent) remains limited.
This suggests that for many Filipinos, gaming serves as an accessible entry point to Web3, but the underlying complexity of the technology is often secondary to the immediate financial benefit.
The entertainment, gaming, and music industries are recognised as vital entry points for the broader population. By fostering this community-driven adoption, the Philippines is leveraging its young, tech-savvy population and existing digital engagement to drive future growth. The success of P2E has solidified the Philippines’s reputation not just as a consumer of digital assets, but as a crucial innovator and proving ground for new, sustainable Web3 business models in Southeast Asia.
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