What Happened to Move-to-Earn (M2E)?

The Move-to-Earn (M2E) phenomenon, a niche within the broader GameFi sector, first gained widespread attention in late 2021, primarily popularized by the Web3 lifestyle application STEPN. The core premise was simple yet revolutionary: users could earn cryptocurrency or non-fungible tokens (NFTs) by engaging in physical activities such as walking, jogging, or running. This innovative blend of fitness and blockchain technology quickly attracted millions of users and significant investment, promising a new way to monetize daily exercise.

The initial surge in M2E's popularity, particularly in 2022, was fueled by a speculative crypto market and the allure of substantial financial returns. Projects like STEPN, Genopets, and Sweatcoin saw rapid adoption, with users investing in NFT sneakers or digital pets to participate and maximize their earnings. STEPN, for instance, achieved a peak 24-hour GMT volume of around $360 million in 2022 and secured funding from major investors like Sequoia Capital.

However, the M2E model soon encountered significant challenges. Many platforms relied on token issuance and NFT sales to fund rewards, a model that proved unsustainable without continuous user growth and a buoyant crypto market. High entry barriers, often requiring expensive NFT purchases, deterred new users, while fluctuating token values and inflationary tokenomics led to a dramatic decrease in earnings. By the end of 2022 and throughout 2023, as the broader crypto market entered a 'crypto winter,' M2E tokens collapsed, with many NFT assets losing nearly all their value. Users who had invested hundreds or thousands of dollars found it increasingly difficult to recoup their initial outlay.

By 2024 and 2025, the M2E landscape had drastically shifted. The promise of 'real money for walking' largely faded, replaced by a more realistic outlook where earnings were minimal and primarily served as a small bonus or motivation for activity. Projects that survived began to pivot, focusing on long-term sustainability, community building, and integrating more traditional gamification elements rather than relying solely on speculative token value. Sweatcoin, for example, shifted its value proposition more towards gift cards and brand offers, with its crypto cash-out option becoming less prominent.

As of August 2026, the M2E sector continues to navigate these challenges. STEPN, still a leading project, implemented a significant change on January 1, 2026, halving its GMT earning emissions by 50% in an effort to ensure long-term sustainability, a move that further reduced user rewards. In April 2026, STEPN also removed its in-app marketplace for Android users, aligning with platform rules similar to those that had been in place for iOS since 2022. Despite these reductions, STEPN continues to engage its community, launching events like 'Around The World 2026' in June, tying digital sneaker enhancements to an international football tournament. Other projects have faced more severe setbacks; Step App, a recognizable M2E platform backed by investors and promoted by Usain Bolt, announced its closure in August 2026, underscoring the difficulty of maintaining user engagement when token rewards diminish. Genopets, another prominent M2E game, has been notably quiet in 2026, though it had discussed tokenomics revamps in early 2024.

The M2E market is projected to grow to $2,310.1 million by 2033, with a CAGR of 15.98% from 2025, indicating a belief in the concept's long-term viability, albeit in a more refined and less speculative form. The current focus is on creating products that users want to engage with even without high token rewards, emphasizing health benefits, community, and engaging gameplay. The sector is now seen as a 'lifestyle layer' that provides small incentives for activities users would likely do anyway, rather than a lucrative income source.