Fix Its Ailing Play-to-Earn NFT Economy?
Axie Infinity Making Big Changes to Fix Its Ailing Play-to-Earn NFT Economy?
The game Axie Infinity will be the subject of this article, which will be severely critical of it. There are a lot of hyped-up, dollar-eyed reviews of Axie Infinity out there, so I thought I’d provide another point of view to balance things out.
I have, in fact, purchased some AXS, but not as a long-term financial investment. I do not intend to hang onto this investment for the foreseeable future since I do not believe Axie Infinity will survive.
READ MORE:Â Axie Infinity Guide: How much money do I need to start?
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With a high entry barrier of up to $1,000, the onboarding process will eventually slow down, resulting in a crash in the value of SLP tokens and the inability to make money from breeding new Axies.
In addition, the creators and administrators are acting suspiciously, banning gamers without notice and manipulating the price of the in-game token, which is a currency. The Ethereum game Axie Infinity has proven to be a huge success, popularizing the play-to-earn gaming paradigm and generating approximately $4 billion in NFT trading activity in its first month of release.
Although token and NFT values have fallen precipitously in recent months, this has called into question the whole play-to-earn concept, which peaked last summer. Its makers have now unveiled adjustments intended to revitalize the game’s sputtering economic situation. On Thursday, Sky Mavis revealed a set of economic improvements that would take effect with Axie’s forthcoming 20th in-game season, which will begin in early 2019.
Essentially, the PC and mobile versions of the game will award far fewer SLP reward tokens and will place a greater emphasis on rewarding players who participate in online arena battles. Axie Infinity is a monster-battling game that makes use of NFT assets to create its world. NFTs are blockchain-based receipts that serve as proof of ownership for a digital item—in Axie’s case, that item is primarily in the form of colorful monsters that you can breed and battle against one another.
Each Axie NFT costs money, and you must purchase three of them in order to participate in the game. However, you will receive token incentives for participating in the game. When Axie Infinity first started in 2018, it built a unique “play-to-earn” concept. However, the Ethereum-based game soared in popularity this summer after introducing its Ronin sidechain, which made transactions quicker and cheaper.
This idea of earning via play resulted in the establishment of community-led “scholarship” schemes, in which NFT holders rent out axes to players (especially those in impoverished countries) in exchange for a share of the reward token revenues. That increase in interest and demand for the game culminated in an explosion of buzz surrounding Axie Infinity last summer, which was a result of the surge in interest and demand.
The SLP reward token reached a high of roughly $0.40 in August, while the AXS governance token reached an all-time high of around $165 in November, indicating that Axie Infinity was producing well over half a billion dollars in NFT trading activity per month at a rapid pace. Since its launch, about $4 billion worth of NFTs have been traded through it.The popular play-to-earn (P2E) cryptocurrency game Axie Infinity reached new heights in 2021, with massive jumps in transaction volumes and income, as well as the addition of millions of new community members.
However, when we approach the midway point of the year 2022, the following issue arises: Is Axie able to live up to the hype? Axie was released by its parent firm Sky Mavis in May 2018, but it didn’t gain traction until the second part of last year, when it began to get positive reviews. According to the company’s co-founder Jeff “Jiho” Zirlin, “2021 was a year of growth and scaling,” whereas “2022 is a year of creating, deploying goods, and offering better and more accessible gameplay experiences.”
The author recalls attending seminars and talking about Axie until he was unable to speak any longer. He claims that it no longer requires an introduction as one of the largest and most well-known play-to-earn games in the cryptocurrency market. According to Zirlin, “We had this incredible growth cycle that put our company on the map and brought us resources to transform this into a decades-long adventure.” “I believe we are currently in the process of developing the items that will propel us into the next growth cycle.” For those who are unfamiliar with Axie Infinity, it is a crypto-focused gaming world and platform that features animals, known as Axies, that players can purchase or acquire as pets, which they can then use to combat, breed, and nurture in exchange for cryptocurrency.
According to statistics from Token Terminal, Axie’s AXS token had a completely diluted market valuation of around $16.7 billion at its peak, and its total income from in-game purchases and market fees paid was $364.4 million in August 2021, when it reached its highest point. According to the statistics, the company’s market capitalization has decreased by 19.76 percent to $13.4 billion, and its total revenue has decreased by about 99 percent to $2.5 million in April 2022 from its peak.
“Bitcoin is really cyclical, and at times you’re in a growing cycle, and at other times you’re in a building cycle,” Zirlin explained. A refractory interval is necessary because exponential growth cannot be sustained all of the time. According to the REKT Database, Axie Infinity’s Ronin Network was the victim of an exploit earlier this year that was worth around $625 million at the time, making it the greatest crypto theft to have occurred to date.
Sky Mavis secured over $150 million in a financing funded by cryptocurrency exchange Binance shortly after the incident in order to pay victims. In Zirlin’s opinion, “we made mistakes because we were moving too quickly, racing for more adoptions,” and “I believe that the entire ordeal from last month will be viewed as a badge of pride for those who have gone through it.” “It’s difficult to consider other scenarios, but the apparent solution here is to increase investment in Ronin’s security and make it a higher priority [coming ahead.”
The company’s market capitalization and revenue have both declined significantly from their peaks, but the company is still flying much higher than it was at the same time last year, according to Token Terminal data. Axie’s market capitalization is up 228.3 percent, and total revenue is up a whopping 50,950.8 percent from the same time last year.Zirlin explained that the firm published Axie Infinity: Origin, a free-to-play version of the game, last month in an effort to attract more customers who might want to give the game a try first before committing to purchasing it.
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