Axie Infinity’s Future Remains Dark Despite $4B Tx Record

March 14, 2022 at 07:35 AM GST 2 mins read Altcoin News

Axie Infinity achieved $3.5B NFT transactions in 2021, more than two-thirds of the volume in the gaming space blockchain.
Volume has continued to grow up to $4 billion as of February 2022.
However, concerns about p2e game arose with the decrease in number of daily active players in the last two months.

Axie Infinity ruled over the non-fungible tokens (NFTs) market within the blockchain gaming universe in 2021. The Pokemon-based play-to-earn game, where players compete with their pets in an arena, met $3.5 billion in NFT transactions last year – fourfold more than its closest competitor, NBA Top Shot.

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The game’s growth in popularity led AXS token to increase 41,276.8% over the year.

List of play-to-earn games categorized by transaction volume in 2021:

P2E game	Transaction Volume
Axie Infinity	$3.5 billion
NBA Top Shot	$827 million
Loot	$242 million
Neo Tokyo	$112 million
Wolf Game	$86 million

Source: https://www.nonfungible.com/reports/2021/en/yearly-nft-market-report-free/form

Axie Hits $4B Transaction Milestone

NFTs sales continued to rise despite the downtrend of most markets this 2022. As of February 2022, Axie Infinity hit $4B NFTs traded between players.

Axie Infinity was introduced as a play-to-earn (P2E) platform. Of course, this became a way for users to create an alternative revenue stream amid the uncertainty of the COVID-19 pandemic. Consequently, this became popular in Southeast Asia, countries like the Philippines.

Furthermore, the lack of a burning mechanism, the removal of adventure reward, and the continuous decrease of SLP gain in the arena hurt the game’s scholarship program most.

.@axieinfinity just hit $4Bn traded NFTs between players 🎉

It's the most traded NFT collection ever!

Usually, game devs take 100% of the proceeds, but the Axie biz model is different.

4.25% of each trade goes into the $AXS token treasury. $AXS can be earned by playing 🤯 pic.twitter.com/mYM7jBKFym
— Psycheout.ron (@Psycheout86) February 21, 2022

Decline in Average Daily Players

According to a report by research firm Naavik, the game’s growth stream is somewhat decelerating. Instead of using their profit to buy more Axies, existing players are cashing out. The report estimates that players are earning less than minimum wage, at least in the Philippines, where more than half of its players are located.

Consequently, apart from remarkably strong players, the return of investment could take gamers months of playing the game every day. Naavik also proposed that Axie Infinity needs to keep increasing its player base to solve this problem.

Furthermore, according to gaming statistics company ActivePlayer, Axie Infinity had an average of 2.2 active million players over the past 30 days. However, the active players have been dropping for the past 2 months.