Axie Infinity is a blockchain game. Players earn rewards by breeding, battling, and trading digital pets called Axies.1 The ecosystem uses two tokens: Smooth Love Potions (SLP) and Axie Infinity Shards (AXS).1
It champions the play-to-earn model. Players are rewarded for playing and own in-game characters/items as NFTs.1 Players pit trios of NFT creatures against each other, earning SLP by winning battles.1
Axie Infinity surpassed $1 Billion in sales, the first NFT game to do so. 60% of its total volume occurred in the last 30 days.1
Key Takeaways
- Axie Infinity is a blockchain-based game where players can earn rewards by breeding, battling, and trading digital pet monsters called Axies.
- The game utilizes two tokens in its ecosystem: Smooth Love Potions (SLP) and Axie Infinity Shards (AXS).
- Axie Infinity champions the play-to-earn gameplay model, where players are rewarded by simply spending time playing the game and fully own their in-game characters or items as NFTs.
- The gameplay revolves around players pitting a trio of NFT collectible creatures against each other, and players earn SLP by winning battles.
- Axie Infinity has become the first NFT game to surpass $1 Billion in sales, with 60% of the game’s total volume taking place within the last 30 days.
Understanding the Axie Infinity Ecosystem
Axie Infinity is a blockchain-based game with an ecosystem leveraging blockchain technology and non-fungible tokens (NFTs).1 It launched in April 2019, powered by its cryptocurrency, Axie Infinity Shards (AXS).1
Blockchain Technology and Non-Fungible Tokens (NFTs)
The ecosystem utilizes blockchain technology and NFTs.1 Each Axie, the digital pet monsters, is a unique NFT with traits determining battle performance.1
Players collect and battle with their unique Axies, which cannot be counterfeited or altered.1
Breeding and Battling Mechanics
Gameplay revolves around breeding and battling Axies strategically.1 Players combine Axies to create powerful teams for battles, earning Smooth Love Potions (SLP) cryptocurrency.
The Role of In-Game Cryptocurrency
Two cryptocurrencies power Axie Infinity’s ecosystem: Smooth Love Potions (SLP) and Axie Infinity Shards (AXS).1 SLP is earned through battles and used for in-game activities like breeding.1
AXS is the governance token, allowing holders to participate in decision-making and share revenue.2 With a fixed 270 million token supply, AXS holders earn rewards through staking and governance rights.2
Traders analyze AXS token for investment opportunities based on its performance and fundamentals.2
| Axie Infinity Metrics | Value |
|---|---|
| Founder(s) | Trung Nguyen1 |
| Launch Date | April 20191 |
| In-game Cryptocurrency | AXS1 |
| AXS 24h Volume | €46.3 million1 |
| AXS Market Cap | €947.1 million1 |
| AXS in Circulation | 145.8 million1 |
| All-time High AXS Price | €142.751 |
| AXS Returns | 6 months: ▼2.71% 1 year: ▲42.92% 3 years: ▲95.48%1 |
| Projected AXS Price | Minimal price in 2026: €20.42 Minimal price in 2031: €67.681 |
| Total AXS Supply | 270 million tokens2 |
Earning Opportunities in Axie Infinity
Axie Infinity’s play-to-earn model has revolutionized gaming.3 With 1.3 million users owning 11.8 billion Axies, the ecosystem offers various earning avenues.3
The Rise of Play-to-Earn Gaming
The play-to-earn concept allows players to monetize gameplay.3 Users can earn in-game currency, Smooth Love Potions (SLP), by participating in battles and quests.4
The Axie Infinity Scholarship Model
The scholarship model enables new players to join.4 Managers provide Axies to “scholars,” who earn SLP, sharing rewards with managers.3 This lowers the barrier to entry, making the game more accessible worldwide.
Staking and Liquidity Pools
Players can earn by staking Axie Infinity Shards (AXS) tokens in liquidity pools.4 As of October 2023, AXS market capitalization stood at $606.6 million, with $4.29 per token.3
Investing in Rare Axies
Savvy players invest in rare, valuable Axies.4 These unique NFT collectibles can be sold for profit in the in-game marketplace.3 In March 2021, an Axie named Angel sold for 300 ETH (around $500,000).
Despite challenges like technical issues and security breaches, Axie Infinity’s innovative play-to-earn model continues attracting players and investors.4
Conclusion
Axie Infinity showcases how blockchain-based games could transform gaming. Its play-to-earn model uses non-fungible tokens (NFTs).2 The ecosystem runs on two cryptocurrencies, Smooth Love Potions (SLP) and Axie Infinity Shards (AXS). Stakeholders earn rewards by holding and staking AXS.
Future Potential and Challenges
However, Axie Infinity faces hurdles like complex game mechanics and high participation costs.5 Daily active users dropped 90% from peak, and AXS token price fell 99%.5 New features aim to address issues like deflation through token burning and Free-to-Play model.
Axie Infinity’s Impact on the Gaming Industry
Axie Infinity could significantly impact gaming by ushering in player-owned, decentralized ecosystems.2 Its blockchain and NFT use inspired over 100 games utilizing its IP.5 Its pioneering play-to-earn approach may model future blockchain-based gaming projects.
FAQ
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Source Links
- https://weareblox.com/en-eu/axie-infinity
- https://financialsource.co/axie-infinity-axs/
- https://blog.bake.io/what-is-axie-infinity/
- https://nftevening.com/the-biggest-blockchain-game-axie-infinity-play-to-earn-model-explained/
- https://medium.com/@chaisomsri96/axie-infinitys-quest-for-a-second-golden-age-f3a562c51cb0
