In this episode of the BeInCrypto video news show, host Jessica Walker will update viewers with the latest developments from Axie Infinity. One the hottest topics in the crypto world right now, with one of the game’s tokens climbing more than 2,000% in the last two months. So let’s dig into the numbers and see how popular the game is, what it is and where it’s headed next.
According to the most recent Blockchain Game Report from the Blockchain Game Alliance, over 804,000 unique active users connected to blockchain-based games in July. The trend indicates that while the novel industry is in the throes of speculative activity that’s driving up volatility, the gaming segment is quickly growing its user network.
Axie Infinity dominates the sector, the BGA’s data revealed. With over $1 billion in trading volume, $600 million of which came in July, the game became the most valuable collection of NFTs.
Launched in 2018 by Vietnamese developer, Sky Mavis, Axie Infinity is a play-to-earn game inspired by the popular video game franchise, Pokémon. The game features Pokémon-like creatures called Axies, and their powers can be traded and exchanged as non-fungible tokens on P2P marketplaces. In Axie Infinity, players can battle, breed and raise various monsters called “Axies.” Each one comes with its own unique NFT that can be raised, battled and traded.
Built on top of the Ethereum blockchain, the video game allows players to earn money through game play. Axie Infinity has become increasingly popular in developing countries such as the Philippines, where players can simultaneously bolster their cryptocurrency earnings by playing the game. But its appeal is now becoming a global thing.
There are two Ethereum tokens that players earn, Axie Infinity Shards (AXS) and Smooth Love Potion (SLP). Traders exchange these tokens on cryptocurrency exchanges to earn revenue. In the past two months, AXS has offered over 2,000% in returns to traders.
The game is quite diverse, and each different strategy opens a wide range of profit-taking opportunities for the player. Players who invest several hours a day earn anywhere between $8 to $40, depending on their Axies, powers and incentives. To start playing, traders deposit Ethereum to Ronin wallet, Axie Infinity’s sidechain linked to Ethereum, and buy Axies. Buying two Axies and breeding them for the third is one of the most popular strategies.
Three Axies are needed to play the game with a reasonable profit. Players develop a passive income stream by buying additional creatures and offering scholarships to new players who cannot afford Axies. The revenue is derived from profit splitting between the scholarship provider and the player.
Though there are costs that players incur every step of the way buying Axies, breeding them, and so on. Every time a user sells an Axie on an NFT marketplace, they can earn an average of $270. Traders should play 50 to 80 days to recover their initial investment of $800. Then they can expect to earn anywhere between $10 to $15 a day by playing the game.
Cryptocurrency exchange Coinbase recently noted the surge in AXS demand by crypto enthusiasts and listed Axie Infinity Shards. The US-based exchange announced the listing on Twitter. The Coinbase listing pushed AXS price higher in the past week. However, there are other ways to earn from Axie Infinity.
Based on Google Trends, internet searches for Axie Infinity double that of Activision’s popular first-person shooter franchise, “Call of Duty”. Along with Axie’s whopping 453% increase in trading volume since June, the report suggested that sales volume often led to growth in social media followers via Twitter and Discord.
According to Token Terminal, AXS, helped Axie Infinity generate more revenue in July than any other cryptocurrency. Since the beginning of August, the price of AXS has nearly doubled, from $38 to $74. Coinbase, the major cryptocurrency exchange, listed AXS on August 11.
We seem to be on the cusp of a profound change in the gaming world. Community ownership and decentralization in Axie Infinity could be the blueprint for a revolution in how people participate in games.