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Axie Infinity is one of the first blockchain-based games using NFTs and the Play-to-Earn concept, set in the metaverse. But how is the AXS token responding to the general crypto bearish trend?
Axie Infinity: what it is and how the blockchain game works
Created in 2017 by Vietnamese studio Sky Mavis, Axie Infinity is one of the first games based on the Ethereum Blockchain.
Basically, the game involves users collecting Axies as virtual pets, with aspirations to fight, breed, collect, grow and build kingdoms for their Axies.
In addition, the Axie Infinity universe uses a design that allows players to own their virtual assets in the Non-Fungible Token (NFT) format and achieve an advanced level of skill.
To start playing, users need to set up their crypto wallet and interact with the digital marketplace to purchase their first 3 Axies, which are essential to be able to download the app and start playing.
Axies are NFTs with different factors such as rarity, experience, attributes, and type, with prices ranging from $30 to $1,000 each.
Axie Infinity: NFTs and the Play-to-Earn model
The blockchain game has quickly become the leader as a game with NFTs, recording the highest ceiling with its sales last November 2021, at $40 million in one day.
According to the data at the time of writing, however, precisely during this year of general bear market, sales of Axie NFTs have also suffered, dropping yesterday to $10,000.
At the same time, Axie Infinity was also one of the first games on blockchain to introduce the Play-to-Earn (P2E) model, which rewards participants by adding value in different ways to the game’s world or ecosystem.
Play-to-Earn was introduced through two simultaneous changes: the introduction of Love Position as a requirement to breed Axies (thus increasing the difficulty of breeding – the version of “mining difficulty”), and the ability to earn Love Potions simply by playing the game.
This past March, Axie Infinity increased transaction fees in honor of the creator reward program. Specifically, the fees increased from 4.25% to 5.25%. Thus, Axie Infinity players can enter a code from a certain content creator so that the extra 1% will be paid to that creator.
The AXS metaverse token and price fluctuations
Despite its leadership and distinctiveness, the Axie Infinity (AXS) governance token has not always been supported by users.
And indeed, the price of AXS also fell to $100 in early January 2022, while today AXS is worth $6.31 and ranks 60th in market capitalization. This is a net price drop that follows the long crypto winter.