Is Axie Infinity a Good Investment?

tl;drAxie Infinity is an NFT (Non-Fungible Token) game with more than 350,000 daily active users worldwide. Axie runs a blockchain technology that provides a play-to-earn structure instead of mining new blocks on the chain. AXS token has a liquidity score of 59%, and its market capitalization is around $4 billion. It’s ranked 40 in the market cap and has a circulating supply of 58 million AXS tokens, totaling 270 million.
Is Axie Infinity a Good Investment?
Is Axie Infinity a Good Investment?
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Introduction

Axie Infinity is an NFT (Non-Fungible Token) game with more than 350,000 daily active users worldwide. It was founded in early 2018 by Tring Nguyen, Aleksander Leonard Larsen, and Jeffrey Zirlin. The trio found each other from CryptoKitties in 2017 and came up with Axie Infinity's concept after realizing how unsustainable CryptoKitties and other blockchain NFT games were at the time. Axie Infinity is developed by Sky Mavis, which is a technology-focused game studio founded in 2018. This game, classified as NFT, allows users to earn cryptocurrency by playing the game as they breed, fight, race, and trade Axies. Axies are monster-like creatures inspired by Pokemon, and users control these monsters for Ethereum. This project is another result of the gamification of blockchain, which provides a fun and educating way to introduce people to blockchain technology. The difference between Axie Infinity and other crypto games is that the blockchain economic design rewards users for contributing to the ecosystem. It means the more you contribute to the Axie universe, the more rewards you'll be able to gain.

How Does Axie Infinity Work?

Axie runs a blockchain technology that provides a play-to-earn structure instead of mining new blocks on the chain. Players can earn by competing in PvP battles, breeding Axies and selling Axies or collecting rare Axies. However, "Smooth Love Potion" is needed for brewing Axies. SLP tokens, like any other cryptocurrency, are volatile. SLPs are given to players with PvP matches and daily quests. Moreover, players can also earn governance tokens or AXSs by playing. This token represents a real slice of the Axie Infinity universe and has built-in governance rights and fee sharing. Since users can earn this token by playing, a ready player one-time quest emerges where players can earn a part of the universe. This means the reward system rewards players for their effort and skills, not their wins and losses. As of the moment, there are more than 140,000 Axies, and the price starts at $1, and the most expensive Axie was sold at 300 ETH (USD 1,500,000). 

This page offers detailed beginner's guide to the game which is worth checking out if you're considering becoming a player.

Financial Analysis

AXS token has a liquidity score of 59%, and its market capitalization is around $4 billion. It’s ranked 40 in the market cap and has a circulating supply of 58 million AXS tokens, totaling 270 million. Since AXS is launched on Ethereum blockchain, it is secured by Ethereum’s Proof-of-Work (PoW) consensus mechanism. 

Axie Infinity’s average ROI (Return on Investment) over the past month experienced a 40% increase. We can’t talk about the average ROI over the past year, for this coin was launched in November 2020, and therefore, it’s still too new for these types of calculations. 

Axie Infinity experienced a boost of popularity in July, and its rising popularity doesn’t seem to be coming to an end anytime soon. Its Twitter account’s followers increased by 743%, and its Telegram group chat members increased by 615%. This data is crucial because popularity plays a vital role in a token’s success. 

You can check out our detailed reports on Axie Infinity’s market cap, liquidity, and other important factors that determine how good a token’s performance is.


Is Axie Infinity a Good Investment Option in 2021?

We are here to help you make smarter financial decisions by freeing up your intelligence through making it easy to compare thousands of coins. We do all the hard work for you and help you remove emotions from your decisions. However, making an investment decision requires considering your own financial situation and comparing your investment options.

To see our reports and easily compare the available investment options, check out our website.

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