When NFT cryptocurrency collectibles became popular in early 2021, they aroused the interest of a large number of millennials and helped the NFT boom become mainstream. Seeing the opportunities opened up, several blockchain-based game companies began to work hard to occupy new markets. The Axie Infinity game by the independent studio Sky Mavis is one of them. Inspired by Nintendo’s Pokemon series, this monster fighting game has achieved amazing growth in the recent cryptocurrency market crash this month. The company claims that its daily active users exceed 350,000.
The game is available on PC, Mac and iOS and runs on the Ethereum blockchain with the help of a sidechain called Ronin. It requires upfront investment. However, the advantage is that its game earning method rewards successful players with crypto tokens that can be exchanged for currency. In addition, players can own Axie NFT (non-fungible tokens); they can even resell them. When players buy and sell Axie NFT on its market, the game company charges 4.25% and collects fees for creating and breeding cute monsters called Axies, thereby earning income.
— Axie Infinity (@AxieInfinity) July 5, 2021
In June of this year, the value of the Axie Infinity Shards (AXS) token was less than US$5 (approximately 371 rupees). But according to Coin Rivet, a dedicated digital currency news website, its current transaction price is between US$35 and US$45 (approximately 2,600 to 3,350 rupees). The report stated that the token doubled the market value of its native token in three days.
After Sky Mavis raised US$7.5 million (approximately Rs 557 million) in Series A financing, there was an explosive growth. American billionaire entrepreneur and Dallas Mavericks NBA team owner Mark Cuban is one of the investors. He has also invested in cryptocurrencies including Bitcoin, Ethereum and Dogecoin before.
However, the developers of Axie attribute the spike to their shift to Ronin for faster transactions and reduce gas prices (the cost of executing transactions on the network) to negligible levels.
AXS tokens allow users to participate in key votes in the Axie world. The developers say this motivates users to hold their tokens.