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- Axie Infinity players dropped down drastically.
- The bearishness of the market combined with fault in game mechanics can be the reason.
- Ronin Attack of March 2022.
The Adverse Circumstances
Activeplayer.io, which is a game statistics site, represented that the average users who played the NFT games Axie Infinity has dropped down in huge numbers, approximately 701,447 near to the January 2021 status.
Axie Infinity has lost its player base of 1.5 million in just a period of 3 months. In June itself, the organization lost the utmost 1.2 million players alone and the dragging continues even after the release of Axie Origin, the bear season hit the game’s economy.
Axie Infinity is a Pokemon-inspired universe where anybody can earn SLP tokens through playing games and contributing to the ecosystem. Players can battle, collect, raise, and build a land based kingdom for their Axies which are non-fungible tokens.
Axie Land consists of two crypto tokens, AXS and Smooth Love Potion (SLP). Players use teams of Axie NFTs to create SLP in the virtual world by fighting or accomplishing different tasks and hurdles. That SLP can be further used to generate more Axie NFTs. But generating huge amounts of SLP doesn’t prove to be beneficial.
It was like printing currency for the survival of the economy. But, it resulted in the dilution in the value of tokens in circulation. It caused players and users to move away. The players continue to decline due to the action. The price of Smooth Love Potion (SLP), an in-game rewards token, has extremely fallen by more than 95%.
Axie’s $600 million Hack
On March 23, from Axie Infinity’s Ronin bridge, hackers stole over 173,600 ETH, worth over $600 million. Sky mavis, the company behind the Axie, assured to recover the stolen funds as early as possible. The organization declared that they will fundraise $150 million to assist some amount to be recovered.
The devs stated that they are “currently working with law enforcement officials, forensic cryptographers and our investors to make sure that all funds are recovered or reimbursed. All of the AXS, RON and SLP(tokens) on Ronin are safe right now.”
Axie Infinity operates on an Ethereum side-chain “Ronin” which was built by the founder Vietnamese Studio Sky Mavis which is known for its in-game economy which uses Ethereum-based cryptocurrencies. However, its circulating Supply has increased on the other side, about 2.4 billion to 40 billion at the same time due to new players storming in the game.
Based on the information from ActivePlayer.io, the United States ranks third in terms of active Axie Infinity players. The rest of the players consist of various other developing nations. An estimated total 40% of worldwide players exist only in the Philippines. At the same time in the previous year, players in developing countries enjoyed higher earnings from playing the NFT game.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
