Axie Infinity

Popular P2E platform secures its boarding pass to a new digital nation. Specially made for Axie Infinity, the boarding pass comes in the form of a Ronin wallet. Sky Mavis purposefully designed the wallet to allow Axie Infinity players to use Ronin to run other decentralized applications.

Ronin, an Ethereum-linked sidechain, represents a samurai without a master in feudal Japan. However, for Axie Infinity, Ronin is symbolic of the P2E platform seeking to take control of its destiny.

The wallet has enjoyed constant upgrades to welcome the new generation of users to the numerous advantages of Blockchain technology. With its latest upgrade announced on Twitter, the wallet aims to allow users derive 100% genuine ownership of their assets.

 What Is Axie Infinity?

Despite the recent buzz surrounding DeFi and NFT marketplaces, some people may be in for a shock. Surprisingly, the most widely used cryptocurrency application is actually a game. The developer team behind the most widely used cryptocurrency program, Sky Mavis, spent more than three years building Axie Infinity.

In March 2018, Sky Mavis debuted Axie Infinity. It is a real-time card-battle game created on the Ronin Network, an Ethereum side-chain. Axies are a race of magical creatures that serve as the cornerstone of the Axie Infinity metaverse.

Axie Infinity¬†gained notoriety as a top cryptocurrency game with a total of 2.7 Million daily active players. The game’s spectacular success has brought in millions of dollars for the game’s developer, Sky Mavis.

Axie Infinity: A Background Check

The developer retained 17% of the $700 million revenue from in-game sales this year. In addition, it anticipates earning $1 billion by year’s end. The three-year-old Vietnamese firm currently has over 2 million daily active users, up from 38,000 in April.

Moreover, Andreessen Horowitz’s recent $152 million Series B fundraising valued the game developer at an estimated $3 billion. However, the corporation does not own all of the Axie Infinity tokens. Sequentially, this fact causes its valuation to be less than the market capitalization of its cryptocurrency.

Sky Mavis claims that it would put the additional funding to good use. They hinted at launching a new game, a decentralized economy, and an improved warfare system.

Axie Infinity
Axie Infinity has over 2 million daily active users.   Image Source: Bleeping Computer

 Axie Infinity’s Growth

Interestingly, many in developing nations like the Philippines and Vietnam have turned to Axie Infinity as a source of income. Hopefully, it will gain more significant ground among other countries. In the meantime, let’s see how far it’s come since its inception.

In 2021, Axie Infinity counted over 300,000 DAUs. A significant increase of more than 30x from the start of the year. In addition, their Discord server’s growth has gone utterly ballistic, making it one of the biggest in the world.

The monthly revenue for July 2021 topped with $23 million, which was more than twice the sales figures for June. A noteworthy fact is that Axie Infinity made just over $100,000 in January 2021. In essence, Axie Infinity has been by far the most successful cryptocurrency application in terms of growth metrics.

Nations that uses Axie infinity as source of income
Some developing nations make use of Axie Infinity as a major income source.  Image Source: Axie Infinity

Reason for Growth

Axie Infinity is a pioneer in the use of a novel business strategy made possible by cryptocurrencies. The new gaming business strategy is known as “play to earn“. The business model enables an open economy within the game that rewards players that participate in it.

Users of Axie Infinity can earn between $10 and $20 per day in digital assets by playing the game. Selling Smooth Love Potions (SLP) and selling Axies are two ways users can make money.

Although that amount of money is insignificant in nations like the United States, it significantly influences developing countries. As a result, employees can practically earn multiples of their minimum wages by simply playing games. Fortunately, the games are much more entertaining than other employment options.

Axie Infinity growth chart
Axie Infinity’s growth chart from 2018-2021.   Image Source: Axieworld

Axie Infinity: Play-To-Earn

The play-to-earn business concept rewards players who take part in a game with cryptocurrencies. In Axie Infinity, players acquire, breed, and engage in combat with monsters known as Axies. While doing so, they earn small love potions, which is the virtual currency that can be exchanged for actual cash.

Each Axie is a non-fungible token (NFT). They are unique items that can be bought or traded on exchanges outside of the game. To begin battles, players require a minimum of three Axies, with the most affordable one costing about $200. In 2020, the costliest monster sold for 300 ether, or over $130,000.

Axie Infinity is a well-known play-to-earn online video game with style reminiscent of earlier titles like Pokemon.  The game is currently one of the best P2E initiatives in the metaverse, competing with initiatives like Decentraland and Sandbox. Additionally, the Ethereum blockchain network on which it runs safeguards the gameplay and transactions as a whole.

Axie SLP
Players can earn by selling Smooth Love Potions (SLP) or selling Axies.  Image Source: Rappler

 Axie Infinity Token

The blockchain game had a market value of $7.5 billion as of October. Also, its native coin has grown by 2,100% since the beginning of July.

Early adopters received an airdrop of 800,000 Axis Infinity Shard (AXS) tokens earlier in October. This caused an increase in the coin value. The staking capabilities were improved, allowing users to store their tokens and create new ones in exchange.

The parent company of Axis Infinity now boasts a 161% annual percentage rate of return. It’s common to relate making money to stake. Axie Infinity’s community treasury, valued at close to $2.3 billion, will provide dividends to AXS holders. This will be in exchange for participating in games, voting, and token staking.

Axie Infinity
AXS has grown by 2100% since July.   Image Source: Criptoeconomia

 Playing Axie Infinity with MetaMask

The Ethereum-compatible sidechain for Axie Infinity is called Ronin. By establishing a connection between a Ronin wallet and a MetaMask wallet, users can access Axie Infinity. Users will need to download the Ronin Wallet Chrome extension in order to access the network.

Then, they can create the Ronin wallet using the exact secret recovery phrase as your MetaMask wallet. After this, users can proceed to tie the two wallets together. Users should note that the recovery phrase is also known as the seed phrase.

By following these methods, users can also take the opposite route and merge their MetaMask wallet with their Ronin wallet.

Any investment/financial opinions expressed by Play to Earn Diary are not recommendations. Our content is for educational purposes only. If you plan to invest in any game or cryptocurrency then please do your own research and only spend what you can afford to lose.

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