The blockchain game Axie Infinity is currently posting parabolic growth for its governance token AXS. What is behind the price doubling in 7 days?
While the Bitcoin price and large parts of the Altcoin market are still vegetating in the summer slump, there are still a few outliers that confirm this rule. At the forefront is the blockchain game Axie Infinity. Its AXS token has grown by over 40 percent in the past 24 hours. On a weekly basis, Axie Infinity also prints an impressive green candle with a plus of over 100 percent. What’s behind it?
What is Axie Infinity?
Axie Infinity is a decentralized app (dApp) that runs on the Ethereum blockchain. Similar to the gaming evergreen Pokémon, the focus is on cute monsters that are bred, traded and sent into battles by players. The little monsters (“axies”) are represented as tokens – more precisely: non-fungible tokens according to the ERC-721 standard – on the blockchain. The same applies to parcels in the virtual game environment. It is an endless game in which users also have the opportunity to earn money. The project describes the principle as “Play to Earn”.
Earn crypto money in a playful way
- Participate in PVP battles to win prizes.
- Grow Axies and sell them in the marketplace.
- Collecting and speculating on rare Axies like Mystics and Origins.
- The “farming” of love potions needed to grow Axies. These can also be sold on the secondary market.
It has also been possible to earn the AXS (Axie Infinity Shards) token since 2021. The ERC-20 token fulfills various functions. Its holders can take part in network governance with it, stake it and use it for payments within the gaming universe. Staking and participation in network governance, which also includes control over the platform’s own community treasury, should be introduced towards the end of Q2 2021, according to the roadmap.
Why is the Axie Infinity (AXS) price rising?
The upcoming introduction of AXS staking is likely to be one of the strongest price drivers behind the current AXS rally. At the end of June, the Axie Infity team posted a tweet listing the current construction sites. In addition to the staking dashboard, this also includes the introduction of its own decentralized exchange (DEX), which acts as a marketplace for the game assets.
The aforementioned “land gameplay” refers to the fact that properties in the game universe can primarily be traded so far. This is to be expanded in two phases. On the one hand, it is planned that the parcels will also play a greater role in the game mechanics. Crafting ingredients or AXS tokens should also be found on the properties. In phase two, players are given the opportunity to integrate their own content such as landscapes, game objects and also their own games into the world of Axie Infinity. This is made possible by the developer kit Lunacia SDK, named after the game world, which is currently under development.
Another reason for the recent AXS price jump comes from the area of decentralized financial services (DeFi). One has been running on the Aave crypto lending platform since July 12th poll on the introduction of AXS as a new collateral token for securing crypto loans. At the time of going to press, the proposal had 39 yes and one no votes.
The fact that an NFT game developer reported on an extremely profitable property sale on the same day is likely to have aroused covetousness among the Hodlers.
I just sold a lot for $ 28,000 that I bought for $ 300. Do you think this won’t be a revolution? What if your child asks for your credit card to play a game and comes back with a wad of cash?
Kieran Warwick on Twitter
The AXS rally testifies to the unbroken interest in NFT platforms, which already outperformed the rest of the market in parts last week.