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Axie Infinity is a block-chain based game where players can purchase non-fungible tokens (NFTs) of cute monsters and fight against other players. Players can earn Smooth Love Potion (SLP) Tokens in the game which can be traded for real money. Players can also breed more Axies which can be traded. With the NFT craze dying down, Axie Infinity suffering a major data breach, and new play-to-earn games coming out, the game is in a tough spot. But is it really dying? Let’s find out.
Interest in Axie NFTs is dipping
According to research analysts at Nansen, NFTs are showing signs of decline. As per Nansen’s report on NFT minting behavior and market analysis, about a third of the NFTs that were created in 2021 have lost value considerably. A lot of the NFTs that are being traded do not even cover the cost of minting.
In Axie Infinity, it is possible to breed new NFTs but it costs players’ time and it becomes impossible to place a realistic value as different players value their time investment differently. The report shows that a lot of the NFT market is driven by individuals who are not active traders and NFTs are losing value because of that. Interest in Axie Infinity is also taking a dip, as indicated through Google Trends which showcases a downwards trend for the game since July 2021.
A market analysis of Axie Infinity by Covalent shows that there is negative growth of new players. The price of Axies is also dipping rapidly. On 6th November 2021, the price of an Axie was over $150 USD and currently, it is under $40 USD. The number of breeders is shrinking and it is not currently profitable for anyone regardless of whether they are experienced or not. The decreasing growth rates and a decline in existing breeders are telltale signs of decline.
Earlier this year, Axie Infinity lost $625 million USD in cryptocurrency to Lazarus Group which is a cybercrime group based in North Korea. After the breach on 23rd March 2022, publisher Sky Mavis has been trying to recover the lost cryptocurrency and is currently in the process of restoring whatever was stolen through strategic investments.
Should you play Axie Infinity in 2022?
Axie Infinity was showing signs of decline even before the data breach and Bloomberg highlighted the issue in a report as well. Axie Infinity received its Origin update and Sky Mavis continues to support the game. As a game, it is unlikely that Axie Infinity will die out anytime soon. But if you wish to invest your time or money into the game in hopes of returns, there is a noticeable decline that you should be wary of.
The price of SLPs is dipping rapidly and it is becoming difficult for players, who are looking to make money from the game by breeding or trading, to make noticeable profits. While the game might not be “dying”, the profitability for the playerbase is low at the moment.
Disclaimer: The above information should be treated as a report on the market conditions and trends of Axie Infinity and it is not meant to be financial advice. Players interested in Axie Infinity should make their own decisions based on their own research.
