- Over the last month, Axie Infinity has boomed in popularity.
- Aspects such as the Ronin sidechain and the game’s play-to-earn model have attracted brand-new players.
- Scholarship programs are likewise making video games more available.
Axie Infinity has experienced a rapid rise in current weeks, with the video game’s native token AXS rising 469% this month. However, the boom might be the start of a larger trend for video games.
Axie Infinity Economy Soars to New Highs
To state the Axie Infinity economy is booming is ending up being somewhat of an understatement.
Simply one week into July, Axie Infinity went beyond the $12 million in profits the video game made in the entire month of June. According to information from Token Terminal, the game has earned $102 million in profits over the last month, which is higher than every DeFi procedure combined.
Furthermore, the AXS token, which plays an important function in the game’s economy, has escalated. The token started July trading at $5.66 and has increased around 469%, striking a record high of $32.19. Aside from its use in-game, AXS token holders receive a part of the earnings the procedure creates, making AXS a much more financially rewarding investment.
The story doesn’t end there, as Axies, the cute NFT creatures needed to play the game, are also soaring in value. On the game’s marketplace, rare Mystic Axies sell for upwards of $56,000, outmatching the current flooring cost of around $42,000 for NFT progenitor CryptoPunks. Costs for plots of virtual land and ultra-rare Axies are also increasing. On Jul. 4, one of just 19 Triple-mystic Axies sold for an eye-watering $820,000. Even the rates for the cheapest Axies have increased, with a trine required to play the video game now balancing $1,300. Back In June, the very same Axies cost less than half the current rate.
Axie Infinity’s Fast Climb
One of the biggest drivers for Axie Infinity’s growth was migrating the game from Ethereum mainnet to an Ethereum-linked sidechain.
Called “Ronin,” the sidechain is made specifically for Axie Infinity and handles all in-game and market transactions of Axies, land, and products. Introducing a dedicated sidechain has dramatically lowered gas charges and improved transaction speeds. Additionally, Ronin has streamlined the onboarding procedure for new gamers, enabling those with little experience utilizing blockchains to start playing.
While the Ronin sidechain has helped enhance Axie Infinity’s in-game experience, bring in gamers who were not already thinking about blockchain innovation has also been essential to the game’s growth. Axie Infinity works on a “play-to-earn” model, where gamers are rewarded with the SLP (” Smooth Love Potion”) token for the time and effort invested playing the video game and growing the ecosystem. The design has been particularly reliable in the Phillippines, where the game has blown up in popularity in recent months. Using current SLP rates, playing the game every day can net over $1,200 a month for the typical player. While this rate might not be competitive in most western countries, in the Philippines, it totals up to more than five times the base pay in some areas.
With the capability to generate income through video game, a lot of Axie Infinity’s new gamers have originated from economically disadvantaged countries. Over 40% of all traffic to axieinfinity.com originates from the Philippines, with a more 6% logging in from Venezuela. Traffic from the U.S sits at simply over 5%; however, if the video game’s appeal and in-game incomes keep increasing, more U.S gamers may start playing.
As the amount of cash earned playing Axie Infinity increases, so does the variety of individuals who wish to start playing. With Axies in high need, the cost barrier to entry has increased substantially given that the video game began. While many individuals in countries like the Philippines desire to begin playing and earning, few have the $1300 needed to buy a trine Axies. This is where scholarship programs come into play.
In response to gamers not being able to pay for the Axies required to play the video game, players and guilds have begun using scholarships. An Axie scholarship is where a manager or guild (the scholar) lends out three Axies that a player (trainee) will utilize to play the game and make Small Love Potions (SLP). The amount of SLP earned by the player is divided by the manager or guild at a fixed ratio. With big companies such as Yield Guild Games benefiting by supplying scholarships, the Axie Infinity player base has continually grown regardless of the increase in Axie prices.
Since Jul. 5, the day-to-day active user count for Axie Infinity crossed 350,000, with no signs of decreasing. The game still has a great deal of development potential, with an increasing number of players still trying to find scholarships. Nevertheless, the most significant difficulty the game will face is drawing in more western gamers. If Axie Infinity can achieve the exact same level of success in the U.S as it has carried out in the Philippines, the current pattern of rapid development might last a lot longer.