All you need to know about Axie Infinity

Welcome to our Crypto Insider for April 15th, 2022 – FREE Edition.

Today, we’re looking at one of the most popular gaming projects in crypto.

Let’s go!

Axie Infinity

What is it?

Axie Infinity is a non-fungible token-based online video game developed by Vietnamese studio Sky Mavis, who are known for their in-game economy using Ethereum-based cryptocurrencies.

Axie Infinity players collect and mint NFTs which represent axolotl-inspired digital pets known as Axies:

Okay, they’re cute.

Here are some bullet points to establish the basics:

Why It Could Moon

Axie Infinity ($AXS) is quickly becoming one of the most popular gaming projects in crypto.

At the time of writing, Axie Infinity is the 43rd largest cryptocurrency by market cap according to Coin Market Cap, just behind Layer 1 network Fantom ($FTM), which we previously featured.

$AXS is considered by many to be the blue-chip gaming project.

While it may not have been the first crypto gaming project, it is certainly the first one to get mass adoption and build a real community.

Its success is due to many things – the gameplay itself, the ability for its users to earn thousands per month, and, as we mentioned, the community.

The company has also definitely made the most out of its funding rounds. One example of such is moving off the expensive Ethereum network and creating its own chain, Ronin Network.

While Ronin Network was hacked in the past month for about 2,000 $ETH, or about $7 million at the time the hack happened, we’re bullish on Ronin Network’s security moving forward, given the Axie Infinity’s proven ability to execute.

After all, there are 2.2 million daily active users (DAUs), according to Active Player. As the market leader in crypto gaming, it’s poised to continue to grow as crypto gains adoption.

Triple A estimates that in 2021 global crypto ownership was at average of 3.9%. It’s not unreasonable to think that number can get to 25% in the foreseeable future, which would be almost 6x the global crypto ownership of 2021.

The company intends the full release of mobile gaming on Android & IOS. This not only helps current users get more game time but will critically make the soon-to-be mobile game more accessible, which is critical to adoption, especially in 3rd world countries.

Roadmap

Axie Infinity has an exciting roadmap to improve its metaverse and get more adoption.

They’re moving well so far.

There are two major milestones they are looking to hit:

  1. Completing land gameplay & ownership, which makes their metaverse significantly more mature
  2. Mainstream release of mobile gaming

Community

We mentioned in our write-up about Defi Kingdoms the importance of community in gaming projects, and Axie Infinity is no exception. Neither is the lack of community concern for Axie Infinity.

It certainly helps that it’s CUTE AF.

The Discord boasts more than 725,000 members, and its Twitter has more than 955K+ followers, both of which seem very active. That’s always a good sign.

Price

The difference between its lowest point in the last year vs highest point is nearly a 40 times difference – comparing lows of just over $4.00 in May 2021 to as high as $160 in October 2021.

The current price of Axie Infinity is $50.47 per USD.

Axie Infinity is 69.48% below the all-time high of $165.37

The price seems to fall for a couple of reasons:

  1. Major coins $BTC and $ETH tumbled, which always causes altcoins to drop down even more.
  2. Axie Infinity reduced breeding fees to players, which hurts the earning potential of those who played the game
  3. Inflation in the ecosystem

While $AXS is unlikely to rebound fully when $BTC and $ETH do, we believe there is still plenty of long term growth potential.

Strengths

Axie Infinity has plenty of strengths:

  • Largest crypto game and will continue to accrue users
  • Strong upcoming roadmap to increase DAUs
  • Growing DAUs and monthly active users (MAUs)
  • Has its own network that isn’t reliant on other networks
  • Strong community with great engagement
  • Very frickin’ cute. Everyone is here for it.

Honestly, we can’t get enough of it.

Weaknesses

Not many weaknesses to list here, though the existing ones are quite serious:

  • Recently hacked, which demonstrates security problems
  • More competition as more crypto gaming projects pop up

Competition

There aren’t any larger competitors that we can compare Axie Infinity to. For now.

Instead, we’ll look at one of the most popular games – League of Legends, which boasts 50 million DAUs. While it might not be realistic to expect Axie Infinity to be able to almost 25x from its 2.2 million DAUs to 50 million DAUs, it’s not unreasonable to see a 5x or more down the road in DAUs, which might increase the price 5x or more.

How to Purchase $AXS:

There are multiple ways to do this – we’ll go over the route that we imagine most beginners would go through. We will not be going through crypto safety best practices in this section. It is your responsibility to keep your information safe and secure.

The easiest way to buy $AXS is through a centralized exchange (CEX) such as Coinbase. It’s very accessible and easy to purchase – all you need is $BTC or a supported fiat currency such as $USD and $EUR.

Disclosure: This is not financial advice. This article is for entertainment purposes ONLY. I am also a holder of $AXS and long on the project.

That’s it for this week’s Crypto Insider. Did you find it useful?

Also, have you seen Wyatt’s newsletter, The WC yet? It just launched and you can sign up for it HERE. We’re also launching a new weekly brief for anything and everthing Alts. It’s called Alts Cafe and you can sign up HERE.

If you have any questions or would like to discuss anything about this issue (or about crypto in general), please don’t hesitate to head over to my Twitter, where I can respond to all of your questions, comments and suggestions. Just @ me – seo_colinlma. Maybe click Follow if you like what you see.

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Author

Colin Ma

Colin Ma

Colin Ma is an Alts contributor. He has bought, managed and sold multiple digital businesses across various sizes, including high 5 and 6 figure deals, and is active in crypto communities. In the past he has worked with investing.io, Domain Magnate, and founded Makujin Media, a digital marketing and asset holding company. His strengths lie in analyzing various market opportunities and growing businesses with several different models, including ad-based websites, affiliate marketing blogs, and successful e-commerce brands across a variety of niches. In his spare time, Colin can be found breakdancing around Southern California and cooking up a storm in the kitchen.

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