Blockchain game Axie Infinity (AXS) has experienced tremendous growth in recent months. Not only have user numbers shot through the roof, but AXS, the game’s native token, has also seen a parabolic rise for some time now. Is it all just hype or are we on the verge of a gaming revolution?
The non-fungible token (NFT) industry continues to boom. In particular, the blockchain game Axie Infinity is currently breaking all records. Less than a year ago, the AXS token’s market cap was just $7 million. It now stands at nearly $4.1 billion.
In the same period, AXS rose from $0.147 to $72.96 as of press time.
That represents an incredible share price growth of nearly 50,000 percent in a single year.
What is Axie Infinity anyway?
Axie Infinity is a decentralized app (dApp) that runs on the Ethereum blockchain. Much like the gaming evergreen Pokémon, Axie Infinity centers around cuddly monsters that are bred, traded, and sent into battles by players. Unlike traditional classic games like Pokémon, however, the little monsters (“Axies”) are immortalized as tokens – or more precisely, non-fungible tokens according to the ERC-721 standard – on the Ethereum Blockchain. This makes them truly unique compared to “normal” gaming characters or game items, and not replicable and changeable at will.
In addition, players can earn AXS tokens in the game. To do so, they have to participate in PvP battles, breed Axies, farm so-called love potions that are needed to breed Axies, or complete other missions. In addition, it is moreover possible to use the AXS token in the governance of the Axie universe, staking AXS or use them for payments within the game.
Axie Infinity is giving Fortnite a run for its money
Axie Infinity’s growth has been gigantic. If it remains constant over the next few months, it’s even likely that Axie Infinity will overtake Fortnite as the largest Discord community in the world. For comparison, Fortnite’s Discord channel currently has around 800,000 members, while Axie Infinity already has over 720,087 members.
<img src=”https://www.btc-echo.de/wp-content/uploads/2021/08/image-27.png 975w, https://www.btc-echo.de/wp-content/uploads/2021/08/image-27-490×460.png 490w, https://www.btc-echo.de/wp-content/uploads/2021/08/image-27-661×620.png 661w, https://www.btc-echo.de/wp-content/uploads/2021/08/image-27-768×721.png 768w” alt=”Discord Axie Infinity” height=”915″ width=”975″ />Source : https://discord.com/invite/axie
While Axie Infinity’s user numbers are still well below Fortnite’s (6-12 million) at just under a million daily active users, it’s still remarkable how quickly the blockchain game has grown in recent months.
Axie eclipses DeFi
For a long time, Decentralized Finance (DeFi) was the only thing that had the Ethereum community in a state of euphoria. However, AXS’s protocol revenue has since eclipsed all other DeFi applications.
Within the last 30 days alone, the blockchain game has generated more than $300 million in log revenue. In the same period, the decentralized exchange PancakeSwap (CAKE) has raised just $13.3 million. Even the Ethereum blockchain comes in at just $74.9 million over the same period.
Most of the blockchain game’s revenue flows directly back to its players. Most of the capital therefore currently stays within the virtual economy and ensures that the AXS economy can continue to grow. Another portion of the revenue flows into a community coffers managed by all AXS token holders. Conversely, this means that while Axie players are making money, the community is simultaneously amassing a large fortune that can be used to further develop the game.
Why is Axie Infinity only now booming?
Axie Infinity has been around for three years, and yet the hype surrounding the game only started recently. One reason for the sudden surge in Axie’s popularity is likely the Ethereum scaling solution Ronin, which was introduced in May. Ronin made it possible for mere mortals to play Axie Infinity for the first time. As a result user numbers, as well as the AXS share price, exploded.
Another factor that has contributed to the enormous growth is certainly the Corona pandemic. As a result of the pandemic, important sources of revenue have been lost, especially in developing countries. This has led to a lot of people looking for other sources of income and Axie Infinity, among others, has been able to benefit from this.
Axie creates opportunities for anyone in the world who owns a smartphone or computer to earn money. In particular, people in the Philippines, but also in other developing countries, are making a living right now by playing Axie and managing their money with DeFi apps.
Here’s what we could expect in the future
The play-to-earn model of Axie Infinity and other blockchain games has the potential to fundamentally change the 180 billion gaming world . It’s even conceivable that play-to-earn could supplant the pay-to-play gaming model sooner rather than later. Largely due to the ever-growing Layer 2 scaling environment and Ethereum 2.0, it is likely that we will see many more Blockchain Games in the coming months and years that could fundamentally change the crypto sector.
The emergence of blockchain gaming, metaverses and their associated virtual economies has only just begun. Their combination with Decentralized Finance in particular could be the next big catalyst for another massive bull run that could benefit residents of poorer countries and regions in particular.
This article previously appeared in July 2021 It has now been reviewed and updated.