When the NFT currency collectibles became popular in early 2021, they piqued the interest of many in the millennial generation, causing the NFT frenzy to become widespread. Recognizing an opportunity, a multitude of blockchain-based video game companies began trying to enter the new exciting industry.
The Ethereum-based video game Axie Infinity is the current phenomenon in the NFT market. The play-to-earn game has surpassed the $1 billion milestone in sales and has over 1 million active players daily at the time of publication, the NFT video game, which is influenced by the Pokémon franchise Sky Mavis, a Vietnamese studio, created the internet-based video game. It contains its own digital economy and uses Ethereum-based currency in the shape of AXS (Axie Shards) and SLP (Slow Love Potion).
The game revolves around Axies, adorable fluffy creatures that players may grow, train, and use to complete goals and fight live. For playing the game, a player has to buy at least three Axies. Axies are just like Pokémons, they can be used to fight other players or teams. The entry-level Axies now cost more than 400$ each, so a player has to spend at least 1300$ to start playing the game.
The game's objective is to gather SLPs (Small Love Potions), which can then be used to make additional Axies to utilize in the game. On a cryptocurrency exchange, SLPs may be used to purchase and sell cryptocurrencies. Premier gamers are claimed to be earning 1,500 SLP each day from their Axies, which is about 435 USD, despite the fact that the value of SLPs vs the USD varies daily. Although it has been gradually increasing since 2020, there is motivation to hang on to them – or, alternatively, sell while the cost is high.
It would be an understatement to say that the Axie Infinity economy is thriving. The AXS token, which is crucial to the game's economy, has soared in value. The coin was trading at $5.66 at the beginning of July, and it has now increased to $32.19, a 469 percent increase.
In July, it had a market capitalization of $900 million; currently, it has a market capitalization of $2.6 billion. Because the AXS token holder receives a share of the money generated by the system, investing in AXS is a profitable alternative. Furthermore, the Axies have seen a significant increase in value. The price of the rare mysterious Axies has risen to above $56000. In July, a triple mystic Axie was sold for $820,000.
Sky Mavis raised 7.5 million USD in Series A funding, which fueled its rapid development. One of the venture capitalists is Mark Cuban, a United States tycoon businessperson and founder of the Dallas Mavericks NBA club who has earlier dabbled in currencies such as Bitcoins, Ethereum, and Doge.
The surge, according to Axie's creators, is due to their move to Ronin for quicker payments and a reduction in gas costs - the expense of performing a trade on the platform – to a minimal amount. People can spend AXS tokens to decide on important issues in the Axie world. The creators claim that this encourages people to keep their tokens.