While many cryptocurrencies have sunk this summer, Axie Infinity has exploded. Its value increased by over 400% just in the first half of July. Even though it has cooled since then, a $ 1,000 purchase of Axie Infinity six months ago would still be worth over $ 27,000 now.
The rise in prices has made Axie Infinity a popular cryptocurrency investment, but it is also an investment that many people are not yet familiar with. Here’s a look at what it does, its results so far, and if it’s worth buying.
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What is Axie Infinity?
Axie Infinity is both a Pokemon-inspired online game and a cryptocurrency. In the game, players collect, fight, and trade creatures called Axies. These Axies are non-fungible tokens (NFTs) that players can buy in a market or raise.
The reason Axie Infinity is so popular is that players can earn cryptocurrency as in-game rewards. The Philippines, in particular, is a hot spot for Axie Infinity. Many Filipinos use gambling as a way to supplement their income or even as a full-time job.
Getting started with Axie Infinity doesn’t come cheap. The more affordable Axies cost around $ 200 right now, and you need three of them to play. The more expensive Axies tend to perform better and allow players to earn more crypto. Because of the upfront cost, many potential players ask for an Axie scholarship – someone to buy them a squad in exchange for reduced profits.
There are two cryptocurrency tokens earned through Axie Infinity: Small Love Potion (SLP) and Axie Infinity Shards (AXS). Axie Infinity Shards are a governance token, which means that people with tokens can participate in voting on the future of the game. You can purchase them without participating in the game itself, although it is not available. on most of the most popular cryptocurrency exchanges.
The rapid growth of Axie Infinity
The Axie Infinity game started in 2018. Axie Infinity Shards arrived much later, when it launched in November 2020.
When the Axie Infinity token was launched, it was worth around $ 0.18. It was almost immediately successful, breaking the $ 1 mark in January and the $ 10 mark in April. Like most of the crypto market, it then fell and the price even fell below $ 3 in June.
This decline did not stop the Axie Infinity game. The developer raised $ 7.5 million in May from various investors, including Dallas Mavericks owner Mark Cuban. Axie Infinity currently tops the NFT Market Rankings and Ethereum Games Rankings (ETH) for the past 24 hours, seven days, and last 30 days according to DappRadar.
Axie Infinity’s price peaked at $ 29.13 on July 15, 2021. There has been a drop since then, and right now it’s worth just over $ 17. If you had bought Axie Infinity for $ 1,000 six months ago when the price was less than $ 0.70, it would be worth over $ 27,000.
Should you buy Axie Infinity?
There are reasons to love Axie Infinity, but it’s risky and he might not be able to maintain his success.
To the credit of Axie Infinity, he has a product that people are interested in and are spending money on to use. It is the most successful NFT market and Ethereum game around today. It’s also making money, with nearly $ 90 million in revenue in the past 30 days according to Token Terminal.
The problem is, for Axie Infinity cryptocurrency to rise in value, the game has to keep growing. Reviews of the game itself are mixed, and much of its user base plays for money, not because of its fun.
The high start-up cost is also an issue that keeps potential players away. Since you have to buy three Axies to play, and even the cheapest one costs around $ 200, you’re considering $ 600 or more up front. How successful would Pokemon have been if players had to buy three Pokemon to start, and the most basic options were $ 200 each?
If you think the Axie Infinity game is going to be huge, then it would make sense to invest in its cryptocurrency. It is not widely available, but it is listed on the Crypto.com exchange.
With the cost and the reviews so far, I have my doubts about the capacity for further growth. Unless you’ve played the game and are confident about your future, it’s probably best to look for other investments.