Axie Infinity, NFT-based Game Reaches $1 Billion in Trading Value | Business

Axie Infinity is a game that has been taking the news around the world by offering the opportunity to profit while playing. It is a blockchain game based on a system of NFTs, or non-fungible tokens, to represent little Pokémon-like monsters in a universe whose economy is based on native cryptocurrencies, such as the Axie Infinity Shard (AXS).

Now, the game has set an important record and surpassed US$ 1 billion in transactions, becoming also the most valuable NFT project on the market.

Axie Infinity, promotional banner (Image: Disclosure)

Axie is a game similar to Pokémon, but it has its own virtual economy that works through tokens like Smooth Love Potion (SLP) and Axie Infinity Shard (AXS). Like all in-game coins, they can be used to buy land, farm or raise Axies. These are creatures that players can also acquire, train, use to complete challenges and battle online, similar to Pokémon and Neopets.

As the popularity of NFTs soared in 2021, we saw non-fungible tokens being auctioned for tens of millions of dollars, as was the case for a digital work by artist Beeple, which sold for $69 million in March. However, the blockchain business model has expanded to several markets, appealing mainly to collectability, exclusivity and authenticity guaranteed by cryptography.

Axie Infinity is the most valuable NFT project on the market

With that, in a matter of months, this market grew to the point of registering an impressive US$ 2.5 billion in transactions in the first half of 2021. Thus, Axie Infinity stands out as the largest NFT project in this market, having so far moved US $1.126 billion with its virtual products, as shown by data from the monitoring site CryptoSlam.

In total, 2.6 million transactions were carried out by 340,000 in-game buyers. There are also nearly 1 million native Axie Infinity NFT owners now, as these little monsters can be traded on and off the platform, gifted and borrowed. The game also has around 1 million active users daily worldwide.

Developed by Sky Mavis, a Vietnamese game studio, Axie Infinity is not a new game. Even though it has existed for three years, its biggest period of growth was in the last 30 days, which have already accumulated 1.4 million transactions and US$ 780 million traded.

Axies are expensive and can be worth thousands of dollars

Axies Marketplace (Image: Reproduction/ Axie Infinity)

Axies Marketplace (Image: Reproduction/ Axie Infinity)

The game’s popularity soared, especially in the Philippines and Vietnam, but it’s not that simple to start playing. Players need to buy or borrow at least three Axies, which are monsters that can be used to fight other players or teams, perform tasks and more.

However, the prices of the cheapest Axies are quite salty, at no less than $60 and generally in excess of hundreds of dollars. The most expensive little monster was called “Sir Gregory,” which sold for $814,000 in July.

Game is accused of allowing pyramid scheme

Therefore, the game divides opinions. While many are enthusiastic about the innovative system that allows players to actually generate income while playing, others believe that Axie Infinity allows for the creation of a kind of pyramid system.

Since NFTs are very expensive and inaccessible, a common behavior seen within the game is for a user holding several Axies to lend them to different people to perform activities to improve their monster, which is then resold for a higher price and the participants who did all the work earn a small share of the profits.

With information: Business Insider

Leave a Comment