Axie Infinity's Utility Currency SLP is Down An Astonishing 99.9% From Its Peak

The value of Axie Infinity's utility currency Smooth Love Potion (SLP) has dropped by 99.9% from its peak value of $0.42 in July 2021 to $0.0034. SLP has had a slow decline over the past few months, but it has accelerated by a significant margin in the last 7 days were its value plummeted by 31.70%.

The governance token initially gained popularity by rewarding real-world players for playing the game and and could be spent to breed new Axies. But over the last few months, the number of rewards given out to players dropped significantly, limiting the amount of money players could earn, forcing many to stop playing.

With many players selling all their SLP on crypto markets instead of spending it in the game, there is a huge oversupply of SLPs leading to inflationary concerns.

Axie Infinity's SLPs are now worth lower than a cent

SLP started trading on UniSwap around the $0.03 mark at the beginning of January 2020. The token was one of the first of its kind, and the idea that you could earn things by playing games was a new and interesting one. However, the market wasn't quite ready for it yet, and by February 2020, it had dropped below $0.01.

However, on February 19, 2021, SLP had risen back above $0.01 and reached $0.016. This happened after the first season of the player-versus-player (PVP) arena started.

It had a steady increase until July 2021 where it peaked at $0.399 and has subsequently been on an extended bearish trend.

Why Has the Price of SLP Fallen So Much?

The recent drop in Axie Infinity’s player base and interest has lowered the value of the in-game resource that drives the game's virtual economy. The SLP token experienced a significant oversupply with users cashing out all their earned SLPs by selling it on cryptocurrency exchanges rather than using it in-game.

This caused its price to collapse to less than a tenth of its high. At the time of writing, the value of $SLP had also dropped to $0.0034. This was a drop of 99.09 percent from its peak of $0.399 in July 2021.

The game has been having trouble keeping its number of daily active users up for a while, and it doesn't look like things are getting better. On June 6, 2022, Axie Infinity went from having 2.7 Million active users at its peak to only 517 Thousand at the time of writing.

With the value of the AXS token also significantly dropping, these sound like troubling times for the developers at Sky Mavis. At its peak in November 2021, one AXS token was worth $164.90, but it is now only worth $12.65 at the time of writing, dropping by 12.91% in the last 24 hours.