Even though the crypto markets have suffered in the last couple of months, some projects are still going strong due to the huge hype and unprecedented community. One such project is Axie Infinity, an NFT product that has managed to climb 300% in the last 30 days alone. But what lies behind the success of Axie Infinity and the AXS token? First and foremost, the winning idea of combining some super popular games like Pokemon and Crypto Kitties. Axie Infinity takes the best of these concepts and combines them in one place, remaining firmly at the top of NFT projects in terms of sales and trading volume.
Axie Infinity – What is it?
Axie Infinity is a project that has been active since as far back as 2018 and has now reached unprecedented heights and firmly occupies a place among the trending tokens on CoinGecko and CoinMarketCap. The trading card game is the brainchild of Vietnamese startup Sky Mavis and runs on the Ethereum network. In the Axie Infinity ecosystem, the characters in the game are called Axies. They are non-fungible tokens (NFTs) that you own and control. You can store them in your personal wallet, transfer them to other Ethereum addresses or trade with other players using the blockchain. In addition to Axies, the game features virtual lands and objects, which are also ERC-721 tokens.
Within the ecosystem, players can use teams and formations in Adventure mode (PvE – Player vs. Environment) to fight Chimera monsters in the realm of Luncacia. Players can also choose Arena mode (PvP – Player vs. Player) to face other real-life Axie trainers. When you win, you get a resource called Small Love Potion (SLP), which is used to breed Axies. SLP is also an ERC-20 token and can be traded on exchanges like Binance (and is performing very well thanks to the success of AXS).
According to data on the Axie Infinity homepage, to date the marketplace has a trading volume of more than 90,000 Ethereum! With Ethereum being worth $2000, the dollar volume reaches 180 million! This is possible thanks to the rapidly growing number of players that recently passed the 250,000 mark! The most expensive Axie right now is a whopping 300 Ethereum, or about $600,000. Although the numbers seem record-breaking, we at DeFi.cx believe that this is not the peak but only the beginning for a game that has managed to become an official partner of Ubisoft, AAVE, Binance, Samsung, Kyber Network, MakerDao, UpBit and many other first-class companies. Let’s now take a look at the numbers of the token on which the entire game runs: AXS!
AXS by Axie Infinity
The price of each individual AXS token is $16.50 (as of July 19, 2021) and the maximum number of tokens that will ever be issued is 270 million. The fully diluted valuation is a whopping $4.5 billion, but the true market cap, calculated on a circulating 55M tokens, is only $900 million. Knowing the partners and the ambitions of the team, the numbers are sure to go much higher. A lucky few were able to buy tokens for just 0.12 cents in November 2020, the day the token hit its All Time Low. This was a very low price compared to the highest price ever: $29 (on 15 July 2021). At the moment, the token has undergone a strong correction of 44%, but the blame can be attributed to Bitcoin which is not doing so well. If you love NFTs, AXS is definitely one of the tokens that should represent the highest percentage of your portfolio!