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- 1 Axie Infinity is going through a tough time at the moment.
- 2 The monthly players on Axie Infinity dropped below 500K in August.
One of the prominent blockchain-based play-to-earn (P2E), Axie Infinity (AXS), is going through a rough phase. The active users of the game have seen a significant drop in the past. Recently, the game has been reported to have witnessed the average monthly players tumble to a yearly low.
The gaming information data provider activeplayer.io suggests that the average of monthly players on Axie Infinity dropped below 500K in August this year. The number was at its peak of 2.70 Million players during February 2022.
Since the start of the year 2023, the number of monthly players on the play-to-earn game has dropped 19%.
Axie Infinity Loses Monthly Active Users
Recent data from DAppRadar indicates a notable decrease in user activity within the Axie ecosystem over the past 30 days. During this period, the number of unique active wallets (UAW) that engaged with the protocol’s smart contracts or conducted transactions amounted to 74,000, marking a 16% decline.
The decline in user activity may reflect shifting trends or factors affecting engagement with the Axie platform, highlighting the dynamic nature of the cryptocurrency and blockchain space, where user participation can fluctuate in response to various market dynamics and developments.
As anticipated, the reduced user count within the game has translated into a decrease in the number of transactions carried out during the observed period. Over the same timeframe, Axie Infinity recorded a transaction count of 1 Million, reflecting an 11% decline when compared to the previous month.
The decline in transaction activity aligns with the broader trend of reduced user engagement and suggests that there may be factors influencing both user numbers and transaction volume within the Axie Infinity ecosystem during this period.
The sustained decline in user activity and transaction volumes on the Axie Infinity protocol has resulted in a decrease in the platform’s revenue. Over the preceding 90 days, both user fees and revenue have experienced a 53% reduction, based on data from Token Terminal. Despite this challenging trend, during the most recent week’s trading session, the AXS token demonstrated a 6% price increase, as per CoinMarketCap.
The AXS token price uptick may reflect short-term market dynamics and investor sentiment, and it contrasts with the broader decline in the platform’s user metrics and revenue over the same period.
On September 14th, Axie Infinity experienced a notable price surge with its price recording an intraday increase of 19%. Interestingly, this price rally coincided with a sudden surge in the number of unique active wallets on the platform for that day.
Axie InfinityActive Wallets on Rise
Data from DappRadar showed a remarkable 77% increase in the count of active wallets on Axie Infinity. This correlation between the increase in user activity and the price hike suggests that positive sentiment and higher engagement within the platform may have played a role in driving up the value of the AXS token during that particular trading session.
Furthermore, the significant volume of short liquidations observed on that day indicates that a short squeeze event likely played a role in the substantial price surge. When a substantial number of traders holding short positions are forced to cover their positions by buying the asset, it can lead to rapid price increases as they compete for available supply.
The combination of increased user activity, short liquidations, and positive sentiment may have created a favorable environment for the notable price jump experienced by Axie Infinity’s AXS token on September 14th 2023.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
