Axie Infinity Economy Is Booming, Amid The Rise in NFT Sales
Axie Infinity, an Ethereum based game, is currently one of the biggest success of the play-to-earn model.
The game Features NFT’s like the game characters and monetizes breeding these characters and selling them. The outcome is a growing demand for Axies, whose stats can make them reach high prices in markets. This has incited a bit of an economic boom, generating more revenue than other known protocols last week.
Axie Infinity Economy Is Booming
Axie Infinity, a battling/breeding game kind of similar to Pokemon, is building a booming economy that has started to leave in the shadows other financially focused protocols. According to DappRadar, Axie Infinity is now the biggest NFT market in crypto. With 50k traders involved in moving more than $80 million throughout the last week, it has become bigger than OpenSea and CryptoPunks.
Jeffrey Zirlin, co-founder and growth lead of Sky Mavis, the company behind Axie, presented growth numbers. According to Zirlin, Axie’s growth had surpassed other more well-known protocols.
This week, Axie generated more revenue than Metamask, Pancakeswap, Synthetix, MakerDAO, and Curve COMBINED.
This is from:
– Breeding fees. – 4.25% of NFT volume on our marketplace.
“Axie generated more revenue than Metamask, Pancakeswap, Synthetix, MakerDAO, and Curve COMBINED. Axie is still a pretty basic product and has many upgrades coming over the next 9 months.”
Why?
Axie’s model has created an economy that has achieved self-sustainability, for the time being. Newcomers that want to be part of this model need to purchase Axie NFTs to profit. Players already in the game are incentivized to breed new Axies to profit from their sales, and the demand for the native token of the game rises as a consequence of these two activities.
Rise of NFT Prices
The growing demand for Axies (the NFTs needed to play the game) has made their prices rise in the market. Not so long ago, three Axies could be bought for less than 600 dollars. To play Axie Infinity, you need at least three Axies to start. Now, the same set would require 900 dollars just to start playing.
Special Axies with uncommon features are even more expensive: mystic characters are part of the original batch of NFTs in the game. Last week, a triple mystic Axie was sold for 369 ETH, a little more than $820K at the time of writing.
By the looks of the market performance, NFTs can be a good source of revenue and used as an investment, if there is a compelling usage linked to them. In the future, more NFT platforms could seek to achieve Axie Infinity’s success by mimicking what they have done.
Axie has seen success in emerging markets, where gaming teams, such as Alphaxie, even go so far as to offer scholarships to novice players to join their team.
