RON’s first show was cold and Axie fell to the altar

In the field of public chains, Ronin Chain is a special existence. It was born due to the insufficient performance and experience of Ethereum, and it is difficult to support Axie Infinity games. Game developer Sky Mavis built Ronin and migrated Axie to this chain in May 2021. superior.

Closely linked to the phenomenal game Axie Infinity, Ronin has been attracting attention since its inception. On November 5, 2021, Ronin launched the distribution of the on-chain token RON in the form of liquidity rewards. Since the reward period lasts for 3 months, current liquidity contributors can only view the amount of rewarded RON, but cannot claim it.On January 6, FTX launched the perpetual contract of RON. After the market game, the futures price of RON remained at around $4.3.

The price performance fell short of participants’ expectations. During the liquidity reward stage, the “shovels” who got rewards dropped sharply—AXS, SLP, and ETH dropped by 50.3%, 79.5%, and 29.3%, respectively. According to the current futures price of RON, the income from contributing liquidity is far from making up for the loss caused by asset decline.

Ronin’s “first show” in the market is cold. Looking at Axie Infinity, its recent operating conditions are also not good. Data shows that the game’s single-day revenue has dropped from $17.5 million at the peak to about $5.8 million, and the NFT market transaction volume has also dropped from more than $30 million to around $6 million in a single day.

Some followers believe that if Ronin wants to develop further, it can not only rely on Axie Infinity, but also strengthen the layout of other applications on the chain as soon as possible.

A positive signal is that Axie Infinity will upgrade the game in 2022, introducing new gameplays such as land trading, construction, social work, and strategic games in the virtual world, and improve the economic model to reduce the speed of the game’s output of SLP tokens. These improvements are expected to improve game operation performance. In the later stage, it depends on whether Ronin can carry more chain games under the development of GameFi to expand the value boundary.

RON’s “Debut” Futures Slip

As the exclusive side chain of the phenomenal chain game Axie Infinity, Ronin Chain has attracted much attention since its inception. Unlike Solana and other new public chains that aim to be all-encompassing, Ronin’s goal from beginning to end is to become the most commonly used Ethereum sidechain for NFT games.

This vision has long been believed by many, and for no other reason, GameFi leader Axie Infinity has migrated to Ronin in May 2021. Both are developed by the Sky Mavis team.

When Axie Infinity venture capital was at its peak, the expectations that Ronin carried were infinitely magnified. Until November 2021, Ronin started the distribution of the native token RON, attracting a large number of players to contribute liquidity to obtain mining rewards.

On November 5, 2021, Ronin launched the liquidity staking incentive through the self-built on-chain DEX Katana, which opened the AXS/WETH pool and the SLP/WETH pool. Users can earn RON by providing liquidity to the two liquidity pools. award. Like other public chain tokens, the main usage scenario of RON in the future is to use it as the gas of the Ronin network.

RON's first show was cold and Axie fell to the altar

 RON Liquidity Mining Page

The initial liquidity mining will last for 3 months, during which 10% of the total RON, or 100 million RON, will be generated.As of January 6, RON is still in the reward stage, players can only view the number of rewarded tokens, but cannot claim them. On the same day, the FTX trading platform launched the perpetual contract of RON, which means that before RON officially enters circulation, the futures price after the game will be generated in the open market.

At 10 pm on January 6th, RON perpetual contract officially appeared in the FTX market. RON futures opened at $4.95 and rose as high as $5.36, but then showed a downward trend. As of January 7, RON futures fell to $4.3, down 13% from the opening price.

This market performance has disrupted liquidity contributors. At the beginning of liquidity mining, many participants expected RON to be $10, but today’s futures price is still less than 50% of the expected price.

You must know that players don’t contribute liquidity for free, but they have to hold or buy two tokens, AXS and SLP, in the Axie Infinity game, and then pair them with WETH for pledge. Since November 5th, the prices of the three assets have all fallen to varying degrees. Among them, AXS has dropped from $145 to $72, a drop of 50.3%, SLP has dropped from $0.095 to $0.0195, a drop of 79.5%, and ETH has It fell from $4,477 to $3,165, a drop of 29.3%.

The “shovel” of mining has fallen sharply, bringing a lot of losses to liquidity contributors. Just when people pinned their expectations on RON, the “first show” of the RON futures market poured cold water. Mining players found that, according to the current RON futures price, the mined mines were far from being able to make up for the losses caused by the “shovel” price drop.

The mining player “Summer After Rain” announced his profit and loss on social media. He revealed that it took more than 600,000 US dollars to contribute liquidity, and it took two months. Finally, RON’s gains were counted, and there was a loss of 230,000 US dollars. “Visually, this is my most unsuccessful operation in 2021.”

Axie Infinity operating figures decline

Ronin, who has a halo above his head, has been criticized by participants for his mediocre market performance, an outcome that seems to have long been foreshadowed. In the early days of Ronin’s launch of token distribution, GameFi was still a market hotspot in the crypto circle, but now the popularity of this sector has dropped significantly. Coupled with the recent sharp correction in the entire crypto asset market, the poor performance of RON can also be expected.

Of course, the decline in Axie Infinity’s operations is undoubtedly the main reason for RON’s underperformance. At present, the ecology on the Ronin chain is particularly simple. The largest application is Axie Infinity, followed by DEX Katana. However, users on this DEX lack transaction requirements, and mining RON is the first application scenario. In addition, there are only infrastructure tools such as cross-chain bridges and blockchain browsers on the Ronin chain.

It is no exaggeration to say that Ronin’s current market valuation is highly dependent on Axie Infinity’s operations. In recent months, Axie Infinity’s total revenue and NFT transaction volume have fallen sharply, and the game has become less popular than before.

Data from Token Terminal shows that in the past 6 months, the total revenue of Axie Infinity has shown a daily downward trend. The chain game once created a single-day revenue high of 17.5 million US dollars on August 6, 2021, but has since declined. From October to the end of November, Axie Infinity’s single-day revenue fell to around US $5.8 million, while After entering December, its revenue fell sharply, with a single-day revenue of only $800,000.

RON's first show was cold and Axie fell to the altar

Axie Infinity’s total revenue continues to decline

The volume of NFT transactions on the Axie market also continued to decline. In August last year, the single-day NFT transaction volume exceeded 30 million US dollars, and the recent single-day transaction volume is only about 6 million US dollars.

Some players commented that Axie Infinity has entered a downward spiral, the price of Axie Elf NFT keeps falling, and SLP (love potion), the main source of revenue for “play while earning”, has also dropped sharply, making it difficult for players to easily earn profits from it. The game is not as active as it used to be.

In August 2021, Axie Infinity also surpassed the mobile game King of Glory with a monthly revenue of more than 334 million US dollars, which has repeatedly attracted media reports, but this phenomenal performance has not continued, and this number one chain game has fallen to the altar.

Axie Infinity can’t protect itself, and it’s not surprising that Ronin is cold.

Ronin ecological application to be expanded

Ronin’s ecological unity is a phased fact, and it has to face the situation of “one loss and one loss” with Axie Infinity. In a short period of time, this situation is difficult to change.

Some Ronin followers believe that if the public chain wants to develop further, on the one hand, Axie Infinity needs to boost its performance, and on the other hand, it needs to strengthen the ecosystem on the chain as soon as possible.

In the past year, Axie Infinity has accumulated 2.9 million users. Although its current situation is much lower than its peak period, Axie is still the vane of the GameFi field, and every move attracts the attention of the outside world.

Some players have pointed out that the limitation of Axie Infinity is mainly the single gameplay and lack of playability. The most important thing is that game activity is related to the price of SLP. When the price of SLP is too low, players will leave due to insufficient income from “playing gold”. Judging from the latest trends of Axie Infinity, it is starting to solve these two major problems.

On December 31, Axie Infinity released the game upgrade notice on the official forum. It will introduce a gameplay code-named Project K in 2022, where “K” is an abbreviation for Kingdom. In the new “Elf Kingdom” product, the gameplay of virtual land trading will be introduced, and a new game scene will be established.

It has been revealed that Axie Infinity has ushered in a new senior game designer, improving on the existing design of Project K and bringing many basic design improvements to the core game experience; the development team also brought in an artist Director to make strong style choices to hone and articulate the core aesthetic of the game (pictured below).

RON's first show was cold and Axie fell to the altar

Axie “Project K” game design sketch

According to the plan, Project K will be gradually deployed in existing games in multiple stages in the future.

In the first phase, there will be more focus on virtual land management (production, resource gathering, construction and trading); in the second phase, additional management game elements (such as skill trees, jobs and social/cooperative activities) will be established; in the third phase, There will be more focus on team strategy games (defense, combat, conquest) etc. In addition, in order to achieve a good game experience and visual effects, the team no longer adopted the previous 2D art style, and rewrote the core engine with 3D technology, allowing players to enter a more realistic sprite world.

The emergence of more gameplay and new elements will help Axie Infinity to recall lost old players and attract new users in the future. In terms of the game’s economic model, especially the output of SLP, the Axie team also plans to change.

In the current game version, there is no limit to the output of SLP. Although the reproduction of elves in the game needs to consume SLP, the speed of casting SLP is still far higher than the speed of burning, resulting in a continuous increase in the selling pressure of SLP and a continuous decline in asset prices. On January 5, Axie Infinity released the development log of “Economic Balance”, saying that it will reduce the inflation rate of SLP by reducing SLP supply and increasing demand.

In terms of supply reduction, Axie will reduce the SLP release rate of daily tasks, PvP and PvE, and replace the reward output of SLP by increasing the AXS reward; at the same time, reduce the SLP generated by automation and robotics, making it easier for real players make money. In terms of increasing demand, Axie will set up a repurchase mechanism and expand the usage scenarios of SLP in terms of gameplay.

Gameplay upgrades and an improved economic model are a positive sign for Axie Infinity, which is stuck in a downtrend.When Axie’s operations begin to recover, the Ronin chain is also expected to win more expectations.

Of course, as a public chain perpendicular to NFT games, Ronin also needs to accelerate the development of its own ecology and build more applications and games.

Judging from the current performance, Ronin has greatly improved the transfer efficiency and transaction speed compared to Ethereum, and the user experience is similar to that of BSC, Solana and other blockchains. Since RON has not yet been officially circulated, there is no gas fee for transfers in Ronin, and the gas consumption level of the chain cannot be known yet, but it is certain that as a public chain that needs to carry high-frequency game operations, the gas fee on Ronin’s chain must be higher than that of the chain. Ethereum is greatly reduced in order to have the competitiveness of the chain.

Some GameFi industry observers pointed out that Ronin has a unique positioning perpendicular to NFT games, and at the same time, with the help of Axie Infinity, it became famous in the early stage of the mainnet launch, laying a good foundation for subsequent development. Both GameFi and the Metaverse are in the early stages of development, and it is expected to usher in more intensive deployment and iteration in 2022. If Ronin can become the birthplace of popular chain games in the future, its imagination space will also expand accordingly.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2022-01-10 08:36
Next 2022-01-10 08:41

Related articles