- Axie Infinity, a game based on non-fungible tokens (NFTs), has broken $ 1 billion in sales – an all-time high for the platform backed by the Ethereum blockchain.
- It’s a Pokemon-like game that requires users to collect “axes,” which are cute characters, each with their own unique combination of body parts, shape, and skills.
- The NFT game has its own virtual economy via in-game tokens – Smooth Love Potion (SLP) and Axie Infinity Shard (AXS).
- In the past 30 days, the game has generated nearly $ 780 million in revenue with 1.4 million transactions.
Axie Infinity, a game that runs on non-fungible tokens (NFTs), hit an all-time high with $ 1 billion in sales – setting a new record for itself and becoming the highest-rated NFT project in the world.
NFTs have grown in popularity significantly in recent years, but especially during the pandemic. Your volume swollen to a whopping $ 2.5 billion in the first half of 2021. While designed to help establish a unique identity, many view them as a real investment that will continue to pay off well in the future.
All-time volume stats for the top 10 NFT projects as of August 9th
|OpeanMeer||$ 1.35 billion||196.931|
|Axie infinity||$ 1.1 billion||2,555,429|
|KryptoPunks||$ 666.6 million||16,415|
|NBA top shot||$ 639.23 million||7,644,903|
|Bored Ape Yacht Club||$ 159.5 million||18,521|
|Rarely||$ 135.3 million||185.693|
|Art blocks||$ 125.1 million||43,691|
|Meebits||$ 123.5 million||8,614|
|So rare||$ 97.5 million||501,592|
|VeeFriends||$ 84.8 million||10,650|
|PUNKS comic||$ 56.6 million||13,521|
Axie Infinity was developed by Sky Mavis, a Vietnamese game studio, and is not a new game. It was launched three years ago.
Axie is a Pokemon-like game that has its own virtual economy via in-game tokens – Smooth Love Potion (SLP) and Axie Infinity Shard (AXS). Like all currencies in the game, these can be used to buy land, run farms, or raise axies.
Shark Tank fame American billionaire Mark Cuban is one of the many investors backing the blockchain gaming company.
What is Axie Infinity and how do you play?
To get started, players must buy or borrow at least three axes. Axies are monsters that can be used to fight other players or teams, much like Pokemons, players can level up their Axies in Adventure Mode, where they climb a ladder and progress through different levels. Or they can choose the arena mode, in which players fight with their Axies against different users on the platform.
As with others Cryptocurrencies, Axies’ prices are very volatile and fluctuate due to several factors. An Axie’s worth depends on its capabilities such as body parts, stats, and skills.
An expensive or potent Axie at the beginning of the game helps in the long run, as it enables the player to establish supremacy earlier. These Axies can be bought through crypto exchanges such as Binance, Huobi, and Kraken.
The most expensive ax of all time, a triple mystic named Angel, sold for 300 Ether (ETH) at the end of 2020. The transaction was then worth 130,000 US dollars.
Players can also get started for free by borrowing Axies from lenders, technically referred to in the game as “managers”. While these managers are willing to lend their Axies, they also have the right to demand a cut on the player’s earnings. This creates a passive source of income for them. The in-game token, AXS, is used to give investors a voice in controlling the game’s ecosystem, while SLP is used to breed new Axies.
However, unlike most games, the in-game cash can be converted into other cryptocurrencies, making them valuable for transactions in the outside world.
It’s a unique play-to-earn model that’s entirely based on the ether Blockchain, and many have used it to generate consistent revenue. In the past 30 days, the game has generated nearly $ 780 million in revenue with 1.4 million transactions. As if that wasn’t enough, the developer announced on Twitter that they had it reached 1 million daily active users (DAUs) on August 6th.
It’s officially More than 1M Daily Active Players! Let’s move on together at $ axs https://t.co/1Z9ssCsFNX
– Axie Infinity (@AxieInfinity) 1628245229000
However, experts warn that the game is not inherently designed as an investment vehicle. The game’s recent popularity has increased the value of tokens and collectibles in the game. It’s viral in some markets like the Philippines and Vietnam, and top players have it allegedly SLP 1,500 ($ 435) a day raked by their Axies.
Even though there are many more such games available today and Axie Infinity has been ahead of the curve for the past three years due to its brewing community.
The play-to-earn genre is just getting started
While Axie Infinity has dominated the headlines due to its age, there are many more games available to play. Since most are relatively newer, they are still in their early stages and opportunities for growth are abundant.
CryptoKitties is one such example where players can buy, breed and trade digital cats through the Ethereum blockchain. A cat name dragon sold for an insane price of 600 ETH – that’s around $ 170,000.
There’s also a Minecraft-like game called The Sandbox where users can create new things and trade them with other players. The game is backed by its own currency called SAND and has become a prime place to share ideas, interact and get involved.
However, Axie Infinity still has many challenges to overcome
With all the fame and sudden surge in users, cracks in the core of the game are now often visible. For the past few weeks, Axies has seen servers several stoppages. Due to the errors and disconnections, the players were forced to stay away from the game. And this is a serious problem as many players actively view the game as a source of income.
Since it is based on a decentralized setup, developer commits are critical to keeping it going. More developer activity means more engineers are working to fix network-related activity. The value often liked to zero for a few days, which means that errors and disconnections will continue to increase unless more support is available soon. Many are too affected that the “manager” system of lending could backfire if lenders get too powerful by piggybacking new users, which indirectly hinders the distribution of wealth within the game.
As metaverse gaming and NFTs have grown in popularity, so has interest in and growth in blockchain-based gaming projects. Axie Infinity and more are just stepping stones to experiment on right now. While a variety of mainstream companies and sports teams have introduced NFTs for collectibles, the gaming industry is just beginning and will take its own time to mature and grow organically. From a regulatory point of view, cryptocurrencies are already in a gray area and games like Axie Infinity are not yet available directly on US-based crypto exchanges.
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