Blockchain technology can disrupt a lot of industries in the future. Gaming is the prime example of how blockchain and cryptocurrencies can challenge existing notions and change the game on its head. Let us explore how NFT-based video games have trended this year and why Axie Infinity is currently amongst the top 25 cryptocurrencies.
Welcome to the world of NFT-based gaming
Games traditionally push players to buy digital assets or view advertising on their platform to earn revenues. Axie Infinity (main token AXS) brings a whole new meaning and value to this field. Axie, a blockchain-based battling and trading game, is inspired by popular games like Tamagotchi and Pokemon and allows players to collect, breed, raise, trade, and battle token-based creatures known as Axies. The difference is that it is partially operated and owned by its players. Players get to own assets on the platform and monetize as the ecosystem grows. With more than a million daily active users (DAUs), many players have started seeing the game as a way to earn their regular income.
Play-to-Earn Model is a hit in emerging nations
Axie Infinity has two cryptocurrencies associated with the ecosystem – AXS and SLP (small love potion). It is the first instance of a successful fusion of gaming, NFTs and cryptocurrencies. The growing buzz is attributed to the ability for normal gamers to accumulate and build wealth via gaming. This is particularly lucrative for developing economies such as the Philippines and Indonesia where average per capita income is significantly lower than the average earnings via this game. The ecosystem has added more than a million daily active users (DAUs) this year and has created a hype around presenting an alternative and a viable career for the pandemic stricken population of these countries.
AXS, Axie Infinity’s native token, can be used by holders to shape the development of the platform, such as deciding how the treasury funds should be spent or in what manner the ecosystem fund should be allocated. AXS can be earned within the ecosystem by playing games as well as through user generated initiatives.
AXS has a maximum supply of 270 million, out of which more than 60 million are already in circulation. It currently ranks among the top 25 cryptocurrencies in the world with the price of $138 per token, with more than $8 billion market capitalization.
Short term technical analysis
AXS started this year at less than $0.55 per token and hit an all-time high of $154 recently, which is a return of 280x in 10 months. This has provided a lot of excitement to AXS investors. It started the month of October at around $75 before gaining great traction in the first week towards $150.
Source: TradingView, Binance
AXS is currently forming a bull-flag from its recent early October rally. A bull-flag pattern indicate higher probabilities of another rally once it fully plays out. A target of $200+ is likely on the cards. However, it will need to get past resistance at $145 before re-entering price discovery mode. Should it fail to break, it enjoys support at $120, followed by the $115 range.
For the gaming community, AXS represents much more than just a cryptocurrency and hence it remains valuable in that ecosystem. The real challenge that AXS will face would be in scaling the DAUs by ten-fold. One, there is currently a limitation on the Ethereum network in terms of transactions and associated costs and two, the AXS team has to build a solid tech to support such a growth. Competitors are also likely to sprout given this success story. This is usually good for the ecosystem but may be detrimental for a single game.
Axie Infinity is very likely to be the leader in the near future as a platform that provides a new and unique place for crypto enthusiasts and gamers to meet their ends and participate in their platform. Regardless of how it plays out, Axie will always be remembered for revolutionizing gaming from a time and money consuming activity to a money making initiative.
Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.