During Covid 19 pandemic, where many people were losing their jobs, the popular P2E NFT game Axie Infinity came as a messiah by showing them a new path to a bright future with new goals. This game became the main source of income for those who lost their job during the pandemic. Unfortunately, it was temporary. The bull run of this game started facing a downfall this year, leaving many players’ expectations and investment goals unfulfilled.
Axie Infinity was created by the Vietnamese game developer company Sky Mavis, which has specialized in creating games with real player-owned economies running on blockchains. The game was first released in February 2018 and has turned out to be a success from the beginning. Axie Infinity is a digital pet universe where players fight, raise, and trade fantasy creatures called Axies. Axie is the first blockchain game to introduce both a desktop and native mobile application with the ability to earn money by simply playing the game. This is now known as ‘Play-To-Earn’ or P2E.
To enter the Axie Infinity world, players need to purchase unique, non-fungible tokens called Axies. Axies are digital pets in the game, which exist in the Ethereum blockchain. These are used to win matches to get in-game currency, Smooth Love Potions (SLPs), which players can convert into real cash. Players can also breed Axies which can be sold on the Axie Infinity Marketplace to generate more income. In the good days, players and investors from different regions were making upto $1000 per month.
The downfall of Axie Infinity
In mid-2021, Axie Infinity attracted the attention of the cryptocurrency investors unlike any other nft game because of the sharp increase in the token price. The crypto token “AXS” shot from about 14 cents to above $150, handing out a mind-boggling 107,000%+ return. The game helped many people in the Philippines and Indonesia to make money during the pandemic period. This project opened the play-to-earn trend, which grew until the end of 2021.
But SLP collapsed 98%, falling to $0.005 because of its overwhelming supply. In other words, SLP’s tokenomics were bad. Every player was able to create a lot of daily SLP, but there were few ways to actually use the currency that doomed it to crash sooner or later.
Sky Mavis’ Ronin blockchain suffered a catastrophic hack, losing over $600 million. It affected the entire market and GameFi projects. The issue was temporarily resolved by a $150 million bailout led by Binance. However, the decline of this NFT game has become more evident through the incident. The game was facing an issue with its economy; SLP and the AXS have experienced volatility following many other crypto assets.
Steps to recover from price drop
Sky Mavis has made some tweaks to the game last December by adding an ambitious project which involves the long awaited land gameplay, also codenamed Project K. The currency has since recovered slightly to around three cents, but still far from the 2021 gold rush peak.
The popular play-to-earn token Axie Infinity (AXS) dropped heavily after a magnificent rally of close to $30 during the last trading day. The asset reached a three-week high but eventually failed to hold the gains and corrected by more than 18.5% since the early trading hours. Moreover, it is currently posing a possibility of a larger downside incoming very soon.
“People are starting to understand that it’s not free money falling from out of the sky, you do have to understand how to play this game well,” said YGG’s Buenaventura.
Adding to the woes of players in the Philippines, the country’s tax authority said last year that players should pay tax on their winnings from the game.
“If Axie wants to survive the next market crash, they will need to build some real-world utility into their game that does not depend on the mood of the markets” said by Jonathan Teplitsky, CEO at Pipeline marketing.
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But as the game's popularity increased, observers pointed out that its economic structure was unsustainable: the value of SLP necessitated new players continually buying in, much like a Ponzi scheme. Sky Mavis' team even acknowledged in its white paper that the game was “dependent on new entrants.”
It was the first to introduce the Play-to-Earn (P2E) model, marking a new chapter on the gaming industry. Axie Infinity introduced a new paradigm of gaming where players can create real value and earn financial rewards.
Axie Infinity was dealt another blow in March 2022 when hackers stole about $615 million in cryptocurrency from a blockchain network that lets users transfer crypto in and out of the game.
Over 94% of investors might lose money if the price of Axie Infinity drops to new lows by 2023. The current trading price of #Axie Infinity is at $4.47, following an unsuccessful attempt to surpass the 50-day Exponential Moving Average (EMA), indicating a possible forthcoming decrease in value.
Playing Axies from Axie Infinity can indeed be profitable, but success depends on various factors such as strategy, skill, market conditions, and initial investment. How are people making so much money with NFTs? Parties 'sell' each other NFTs at arbitrary prices, in order to create an impression of value.
Contact managers via the Axie community hosted on Discord and Twitter. Ask them to take you as a scholar (a novice player). Once selected, you get to access free Axies and in-game resources to begin the game.
This is always changing, but on average, right now users might be able to make anywhere from $10-50 per day playing the game. Various factors influence this, such as the current market price of the tokens involved, demand for Axies, and how much time someone spends playing.
The Axie Infinity sidechain hack occurred when an attacker "found a backdoor through our gas-free RPC [remote procedure call] node" and used it to access the Axie DAO validator. This, as the post explained, was not supposed to be possible.
The most likely explanation for the price surge might be an unexpected short squeeze, which is a rapid increase in the price, owing primarily to excessive short selling rather than underlying fundamentals. This is apparent in the fact that the surprise move sparked a significant amount of short liquidation.
According to technical analysis, AXS tokens have been trading bearishly. After hitting the ATH, the token corrected massively and reached a single-digit value. However, the future price of Axie Infinity (AXS) is expected to recover slowly and steadily.
Will AXS reach $100? With former highs of over $165, AXS has the potential to go over $100. With a strong roadmap and a solid product, Axie will continue to work toward the $100 mark, but we predict it won't get there until after 2030.
According to our current Axie Infinity price prediction, the price of Axie Infinity is predicted to rise by 226.78% and reach $ 23.93 by June 15, 2024. Per our technical indicators, the current sentiment is Neutral while the Fear & Greed Index is showing 74 (Greed).
Axie Infinity still enjoys immense popularity across the globe and has a very active community. We take a look at historical stats and give our price prediction of Axie Infinity as one of the popular P2E games. Players can earn crypto rewards by playing Axie Infinity daily.
The live Axie Infinity price today is $6.83 USD with a 24-hour trading volume of $407.18K USD. The table above accurately updates our AXS price in real time. The price of AXS is down -0.65% since last hour, down -2.05% since yesterday.
Introduction: My name is Clemencia Bogisich Ret, I am a super, outstanding, graceful, friendly, vast, comfortable, agreeable person who loves writing and wants to share my knowledge and understanding with you.
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