Axie Infinity is widely considered to be the leading play-to-earn blockchain game. However, other gamers are surpassing Axie Infinity in monthly active users. Moreover, the project continues to lose monthly revenue, making people wonder if now is a good time to get started with the game.
Axie Infinity Is In A Rough State
Several statistics can help determine whether games like Axie Infinity are worth looking into at this stage. The price of Smooth Love Potion continues to plummet, even though it is essential to breeding Axies, among other things. However, it is the main currency players can earn from PvE and PvP content, making it more appealing to sell it right away for short-term investment recuperation.
Currently, there are no immediate plans to adjust the demand for SLP or come up with new use cases. It is difficult to turn a gaming ecosystem around on the fly. However, the SLP price downtrend has been in place for roughly six months now. SLP may never reach the peak of $0.399 again. Instead, the value hovers between $0.03 and $0.05, making the SLP one earns from playing nearly worthless.
One would think the cheap SLP price would make demand flare up. After all, Smooth Love Potion is used to level up and breed Axies, allowing players to become stronger. Unfortunately, there is very little demand for this currency, which may explain why the price is suppressed rather easily. Over $83 million in trading volume is impressive, but clearly not sufficient to warrant a price movement. Additionally, there is little breeding going on Axie Infinity right now, as many players feel there is a pay-2-win system in place.
The biggest earnings in Axie Infinity come from player-vs-player combat. It requires skills, strategy, and potent Axies. Players can buy these Axies from the marketplace, although top-tier ones will cost $1,000 or more. Players unable to spend that much money will often find themselves at a disadvantage and have to resort to grinding Arena games for earnings. In addition, it takes away a lot of the fun, as the matchmaking system in the game for PvP content remains imbalanced.
Axie Trading And Revenue Drop
Per the Axie marketplace, over 2.2 million Axie sales have been in the past month. A healthy number, even if the prices are hitting rock bottom. Picking up an Axie for $200 or less has become incredibly common, making breeding less appealing. Moreover, several listings show prices below $100. Those values make the game more accessible to newcomers, yet it also creates a problem for those who bought Axies to flip them for profit.
These sales add up to 124,583 Ether in sales, or over $506 million. However, they need to be broken down accordingly. November – a month with $nearly 754 million in sales – saw over 520,000 unique buyers, indicating the average buyer spent a good amount of money. Moreover, this number is steeply increasing over October, with 391.627 buyers. However, the average sale price was $285.22, which is still a substantial decrease from July and August, when the game reached peak popularity.
In total USD volume, Axie Infinity continues to slide downhill rapidly. A volume of over $35 million was recorded in early November, yet it has plummeted below $10 million a few weeks later. It is not a good trend and further confirms how things keep heading in the wrong direction for this project. However, there is no real incentive to buy more Axies or increase overall prices for them or the Smooth Love Potion.
As we mentioned in a previous article, overall revenue for the blockchain game continues to decrease too. While that is not abnormal in a bear market, it compounds the issue somewhat. When all statistics turn bearish or negative, the momentum can quickly turn against the ecosystem. The coming few months will prove crucial for Axie Infinity, as things do not look too great right now. Moreover, it will be up to the developers to turn this ship around.
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