The market value has soared to 30 billion US dollars. What is the magic of Axie Infinity?

The market value has soared to 30 billion US dollars. What is the magic of Axie Infinity?

In the past 6 months, the native governance token AXS of the blockchain game Axy Infinity has soared from US$3 to US$156. This amazing growth has brought Axie ‘s total market value to nearly 30 billion U.S. dollars , making it one of the most valuable gaming companies in the world . 

Such a number may be unbelievable, but what many people really want to ask is why: Why is Axie so valuable? How does it attract so many players? Where do these economic activities come from?

The market value has soared to 30 billion US dollars. What is the magic of Axie Infinity?

Above : An infographic made by Axie Infinity enthusiasts

As an in-depth Axie community, I will try my best to answer these questions through this article and give readers a good understanding of the economics driving the Axie Infinity ecosystem.

Smooth Love Potion (SLP)

A basic element of the Axie Infinity economy is the game’s Smooth Love Potion ( SLP ) token.

Editor’s note: In the Axie Infinity game, players can breed, breed, and trade a digital pet called Axie. These Axies exist in the form of NFT (non-fungible tokens). Players can also get SLP token rewards by using their own Axies to fight against other players. Players need to consume SLP tokens when using their own Axies to breed new Axie pets. It is worth noting that when playing the Axie Infinity game for the first time, users need to go to the Axie market to purchase at least 3 Axies pets before they can start playing this game.

  • First of all, SLP can inspire players to play this game . This is because every time a player wins a battle with his Axie digital pet, he will be able to earn SLP rewards.
  • The amount of SLP earned by a player depends on their ranking . Therefore, players with the highest skills and the best Axies pets can earn the most SLP rewards every day.
  • Top Axie players can earn approximately 600 SLP per day. As of the time of writing, this is equivalent to earning about $50 a day. Of course, this is only the higher end of the revenue spectrum. An average player can get about 200-400 SLP per day .


The market value has soared to 30 billion US dollars. What is the magic of Axie Infinity?

When you know that you can make up to $50 a day by playing this game, you may be motivated to try it. But if you want to start playing Axie Infinity, you first need to get  3 Axies pets (because every 3 Axies form a battle team) .

Axies are similar to the NFT version of Pokemon pets. These Aixes are also pets you use to fight other players. There are currently 9 different types of Axie pets : Bird, Plant, Beast, Aquatic, Reptile, Bug, Dusk , Mech, Dawn. As shown below:

The market value has soared to 30 billion US dollars. What is the magic of Axie Infinity?

Above: The types of Axie pets are: plants, dusk, and reptiles; birds, dawn, and aquatic; beasts, mecha, and insects.

Therefore, each type of Axie can possess various skills . Since each Axie is different in strength, their cost usually ranges from 0.05 ETH to 0.3 ETH. In the Axie Infinity game, the cost of a combat team (including 3 Axies) is usually around 0.5 ETH .

Axie’s reproduction

The market value has soared to 30 billion US dollars. What is the magic of Axie Infinity?

In addition to collecting and fighting, Axie also provides another purpose: reproduction .

  • Similar to Pokemon, Axies can mate with each other to breed new Axies . This means that, theoretically, an unlimited number of Axies pets can be bred.
  • Therefore, the most profitable aspect of Axie Infinity is the breeding market for this NFT game.
  • If users want to make Axies reproduce each other, they must consume AXS tokens and SLP tokens at the same time .

Each Axie pet can breed up to 7 times , and the number of SLP tokens that need to be consumed (destroyed) for each breeding will be more than the previous one (as shown in the figure below), which means that the profit generated by breeding will follow the breeding The increase in the number of times decreases. In addition, it should be remembered that each time it reproduces, it costs 1 AXS .

The market value has soared to 30 billion US dollars. What is the magic of Axie Infinity?

  • The “egg” born after each breeding can hatch after 5 days. The characteristic of the hatched Axie is a random combination of the genes of both parents, and the probability varies according to whether the characteristics of the parents are dominant or recessive.
  • As you can see, the breeding of Axies is a bit complicated, which is why breeders (players) choose which Axies to breed based on the supply and demand of Axies in the market. In any case, the profit potential of reproduction is huge and very profitable.
  • Mid-to-high-end breeders are expected to receive a fixed income of 0.2 ETH to 1 ETH every 5 days . What needs to be remembered is that reproduction can expand indefinitely, and it is very possible to earn a few ETH in a week. (Note: Newly bred Axie pets cannot be bred with their parents and siblings.)
  • If you are still doubting the viability of Axie’s business, you might as well take a look at the daily transaction volume of Axie Marketplace, which is about 5800 ETH (approximately US$20 million). This makes it the world’s second most liquid and active NFT market, second only to OpenSea in daily trading volume .


For players, the most important condition for creating a good breeding farm is that in addition to the initial purchase of high-quality Axies as parents for breeding, SLP tokens are also needed to complete the breeding. In addition to buying SLP tokens on the open market, they can also be earned by playing this game (as mentioned above).

In addition, you can also get passive SLP benefits by lending your unused Axies to other players . This practice is known as the establishment of a Axie scholarship (Scholarship) .

  • The scholarship can be created because the Axie game account is separate from the Axie wallet .
  • This means that you can let other players use (rent) your Axies to play the game while preventing other players from selling your Axies (NFT tokens), and other players will not even be able to obtain the earned SLP tokens. currency.
  • Normally, the distribution ratio of SLP income between scholarship recipients (called “scholar”) and Axie lenders (lender) is between 75/25 and 50/50 . For most people, in this way, it is not worth spending so much time every day and only earning 10-30 US dollars, but for people in underdeveloped countries, the opportunities provided by scholarships may be enough to change Their lives.

Write at the end

SLP is the backbone of Axis Infinity’s pricing structure. This means that when the price of SLP rises, more people will be motivated to buy Axies (thus earning SLP income). And the more people who buy Axies, the more expensive SLP will be. This is an extremely reflexive system .

The figure below shows the number of newly minted and destroyed SLPs in the past 6 months (the yellow part represents the number of destroyed SLPs, and the red part represents the number of newly minted SLPs) . Currently, the number of newly minted SLPs is greater than the number of SLPs destroyed due to reproduction. Therefore, in the past 2 months, the price of SLP has been in a steady downward trend. However, last month Sky Mavis (the development team behind the Axie Infinity game) has nearly doubled the number of SLPs consumed (destroyed) to breed Axie .

The market value has soared to 30 billion US dollars. What is the magic of Axie Infinity?

Above: The number of newly minted SLPs in the past 6 months (red part) vs. the number of destroyed SLPs (yellow part)

This change in the number of SLPs required to reproduce Axie is a temporary solution, and it also shows the game’s builders’ control over the economy-if they want, they can just adjust the SLP The speed of destruction comes to soar the price of SLP.

However, this strategy is an unsustainable way for the long-term growth of the game . Sky Mavis is currently looking for other alternatives so that SLP can be used in more ways (not just through the reproduction of Axie). Is used (destroyed).

Despite this, many people feel that they have missed the opportunity of Axie, but if you really understand the ecosystem, you will know that everything has just begun. I am personally optimistic about crypto games, because I believe this will be the field with the most crypto users in the next few years. I think that Axie Infinity is giving us a glimpse of the future!

Posted by:CoinYuppie,Reprinted with attribution to:
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