- Axie Infinity surpassed nearly $1 million in daily active users and $1 billion in sales.
- Recent Coinbase listing led to a bullish week for Axie Infinity.
- AXS has rallied over 900% in two months.
- On-chain analytics suggests that AXS has long-term growth potential, and the "play to earn" game is currently one of the highest-grossing crypto applications.
Analyst Nick Grous of Ark Invest noted that players who lost their jobs in the pandemic earn by playing Axie Infinity; 40% of the daily active users live in third-world countries like the Philippines.
Coinbase listing Axie Infinity triggers bullish outlook on AXS
Axie Infinity, an online multiplayer video game, has gained popularity in the gaming and crypto community. The game features Pokemon-like creatures called Axies, and their powers can be traded and exchanged as non-fungible tokens on P2P marketplaces.
There are two Ethereum tokens that players earn, Axie Infinity Shards (AXS) and Smooth Love Potion (SLP). Traders exchange these tokens on cryptocurrency exchanges to earn revenue. In the past two months, AXS has offered over 2,000% in returns to traders.
On further analysis of AXS, it is clear that 81% of the Axie Infinity trades are in the USD Tether (USDT) market. This implies that traders are exchanging AXS for stablecoins to safeguard profits. However, the increase in daily active users cushions the existing selling pressure that arises from profit taking on exchanges.
Cryptocurrency exchange Coinbase recently noted the surge in AXS demand by crypto enthusiasts and listed Axie Infinity Shards. The US-based exchange announced the listing on Twitter
The Coinbase listing has pushed AXS price higher in the past week, however, there are more ways to earn from Axie Infinity. Each different strategy in the game opens a wide range of profit-taking opportunities for the player.
Players who invest several hours a day earn anywhere between $8 to $40, depending on their Axies, powers and incentive during game play. To start playing, traders deposit Ethereum to Ronin wallet – Axie Infinity's sidechain linked to Ethereum – and buy Axies. Buying two Axies and breeding them for the third is one of the most popular strategies.
Three Axies are needed to play the game with a reasonable profit. Players develop a passive income stream by buying additional creatures and offering scholarships to new players who cannot afford their Axies. The revenue is derived from profit splitting between the scholarship provider and the player.
Though there are costs that players incur every step of the way – buying Axies (about $800), breeding them, and so on. Every time a user sells an Axie on an NFT marketplace they can earn an average of $270.
Traders play 50 to 80 days to recover their initial investment of $800, and then they can expect to earn anywhere between $10 to $15 a day by playing the game.
Alexis Ohanian, the founder of VC firm Seven Seven Six, commented on Axie Infinity
...The Blockchain empowers gamers to really own the things that they're creating, to really actually monetize the time that they are spending playing these video games.
IntoTheBlock data shows that the growth in "total with balance" addresses (holding AXS tokens in their wallet) has overcome the growth in "total zero balance" (which is considered a bearish metric). Thus, more traders are holding AXS, than those who are taking profits at the current price level. The sentiment of holding the gaming token is a sign of long-term growth potential.
Players hold AXS for nearly eight months on average, which is a healthy indicator of the token's on-chain growth and investor confidence.
FXStreet analysts have set a target of $100 for AXS as it looks primed for volatility.
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