What Happened: Blockchain-based trading and battle game Axie Infinity (CRYPTO: AXS) has grown exponentially in a year.
Over the past month alone, Axie Infinity’s protocol revenue exceeded $330 million, doubling Ethereum’s (CRYPTO: ETH) revenue which stood at $152 million, according to data from Token Terminal.
The game works on a play-to-earn model, where players breed Pokemon-inspired tokenized creatures called Axies. Each Axie is an NFT and has a different set of attributes and strengths.
The Axie Infinity ecosystem also has its own governance token, AXS, which has skyrocketed by more than 13,000% since the beginning of the year.
Although the platform has been around since 2018, its native token did not see much price action until the introduction of its sidechain Ronin.
After the protocol introduced the Ronin sidechain, players could easily breed their Axies without being subject to the high fees they experienced on the Ethereum blockchain.
For the moment, Ronin has zero transaction fees.
Once more and more players made the switch, adoption increased seven-fold.
The platform now has over one million daily active users, responsible for the explosive revenue growth.
What’s more, 95% of this revenue goes back to the players of the game. In order to be part of the Axie economy, players need to own a minimum of three Axies.
At current prices, this means a $600 investment, but users can also opt to borrow Axies from managers and pay them a portion of their earnings.
“The goal was always to make a living playing the game and to own your own characters,” an Axie community member told The Defiant.
“It took a long time for people to understand.”
The player makes a steady income from just playing the game alone and has been able to increase this figure considerably after the game’s utility token Smooth Love Potion (CRYPTO: SLP) surged in value.
“It has the highest co-efficiency of virality of anything that’s been invented on the internet before,” a player called OhhShiny said. “I believe it has the potential to transform global labor markets.”
Price Action: At press time, AXS was trading at $69, losing 1.8% over the past 24-hours.
SLP was trading at a price of $0.15, down 2.29% over the same period.
Photo: Courtesy of Axie game