Axie Infinity In Trouble After Token Value Drops

Axie Infinity launched one of the most successful NFT games of 2021. The game launched by the project sparked a wave of new play to win games.

Unfortunately as the market shifted downward many of the NFTs available on the market held their value but Axie Infinity did not.

Axie Infinity was once a hard game to get started with. Anyone new to the game would be required to purchase expensive NFTs and in-game currency to begin.

The rewards offered in the game and the ability to continue to mint your own NFTs made the return-on-investment worth it.

Now that the market has turned, the value of the rewards in the game and the value of each NFT has dropped significantly, making it no longer valuable to play the game.

The value of Axie Infinity NFTs has dropped by more than 70% in the last few months. The lowest price, or floor price, previously was around $60 and is now $26.

The value of the in-game rewards, or SLP, has dropped over 90% from a few months ago. The combination of these factors has made Axie Infinity a game not worth playing anymore.

This was always a factor for some of these play-to-win games but with Axie Infinity being the largest of the bunch, many did not expect this to happen so quickly.

Axie Infinity prior to the drop was evaluated at over $3bn and received $150m in a funding round. With such a large funding round many expected new releases and features that would help the game continue to grow.

Other projects have avoided the drop in NFT prices with various perks. Bored Ape Yacht Club (BAYC) continues to impress their holders by allowing their community to interact and network with celebrities. On top of that they also host live events for their holders to participate.

If the market does not get better within a few months there could be a lot of NFT gaming projects that fail. Many players do not feel these games are fun enough to cost them money and instead only participate for the lucrative rewards.

Axie Infinity must act soon to help recover their game or many of their players will be out a significant amount of money.

At this rate there are only two ways the team can save their game; increase the floor prices of their NFTs and in-game reward currency or decrease the costs of playing the game.

The former is likely the quickest solution as token values can be extremely volatile in markets like this one.

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Written by Tudor

Works as a developer and helps keeps the digital cogs turning. Leave them alone, they're busy.

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