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Simply Explained

Simply Explained: Axie Infinity (AXS)

Updated: Aug 13, 2024
Published: Dec 28, 2021
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Axie Infinity is a play-to-earn blockchain game created by Mavis Studios that has been in development since 2018.

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The game is still receiving updates but will reach a stable version in June 2021. It is the biggest play-to-earn game in the crypto industry.

If you’re not familiar with it, Axie Infinity is similar to Pokemon, and the user is able to build a collection of "Axies". Axies are cute, collectible creatures that perform functions and battle in the game.

To reach this position, it leveraged ‘in-game ownership.’ In-game items are represented as Non Fungible Tokens (NFTs) on the blockchain and are fully owned by the player. Any in-game tokenised asset can be traded with other players.

Axie Infinity (AXS)

Axie Infinity & Potential Risk

Potential risks to the project include competing games with a better player experience and more robust play-to-earn features. AXS is largely protected from this risk thanks to its strong community, with many players having already invested huge amounts of time into the game.

It’s also vulnerable to security issues that may be introduced through updates, but this is not likely.

Sustained mismanagement and broken gameplay mechanics may also lead to an exodus of users. However, the track record of the game’s designers suggests there’s a low probability of this occurring.

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Cryptonary’s take

Axie Infinity saw its ascension in June 2021 after moving to the Ronin side chain to avoid gas fees on the Ethereum chain. Axie still has room to grow as play-to-earn gaming becomes more widespread within ‘traditional’ gaming communities and console gamers.

Revenue continues to increase. Axie Infinity had surpassed 800 million USD in protocol revenue by the start of Q4 2021. With a market cap that places Axie Infinity in the top 5 of global gaming companies and a user base that remains small compared to traditional video games, future growth is near unlimited.

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