Axie Infinity, a blockchain and crypto-based game, has recently gained a lot of traction in what can be seen as the rise of the new metaverse frenzy. The project recently reached a $30 billion valuation, and the value of its native token AXS has skyrocketed as a result.
Axie Infinity (AXS) has risen nearly 200 percent in the last 15 days, reaching an all-time high of $143 on Sunday, October 3. As of press time, AXS was trading 25% higher at $143 per share, with a market cap of $8.3 billion. The daily trading volume has risen to $3.2 million, with much of it coming from Southeast Asia, particularly the Philippines and Vietnam.
Users participate in the Axie Infinity blockchain game by purchasing Axie characters in the form of NFTs. It allows players to collect, breed, raise, battle, and trade Axies, which are token-based creatures. When a user has three Axies, he or she can play against other users.
AXS, the native token, is used as in-game currency in Axies Infinity. As a result, the game’s increasing revenue results in greater utility for AXS. Axie Infinity currently generates $1.5 billion in annual revenue, putting it in the league of the traditional gaming sector.
AXS and Axies NFTs are becoming more popular.
The rapid rise in the price of AXS and the costs of Axies NFTs may deter new entrants from entering the space. Nonetheless, AXS is being adopted at a faster rate. Crypto analyst Joseph Young explains this in a Forbes article:
The rise of guilds is the primary reason why Axie Infinity user activity continues to rise despite the increase in the price of AXS and Axie NFTs. Guilds such as YGG, Avocado Guild, and GuildFi essentially allow users to borrow Axie NFTs to play Axie Infinity in exchange for a revenue share.
Thus, with the help of guilds, users can play games like Axie Infinity without having to spend a lot of money at first. Users can also receive NFTs from guilds without incurring significant upfront costs.
Frenzy in the Metaverse Obtaining
The rapid expansion of Axie Infinity is likely to accelerate developments in the metaverse or virtual gaming space. Tech behemoths like Facebook (NASDAQ: FB) have already announced a $50 million investment in global metaverse research. The social media behemoth has announced that it will also work with potential players in the space.
Animoca, a metaverse-focused fund, has made significant investments in crypto-based games and NFT-related projects. Animoca recently released a teaser for the NFT sci-fi game Phantom Galaxies. It has also released Warena, a crypto-based play-to-earn metaverse game with personalized characters from users with their own metaverse.
This is only the beginning, and we may see several blockchain-based metaverse games emerge in the coming months.