February 08, 2022.
Axie Infinity was the first ever blockchain game we saw that started to boom and get recognized in 2021 and increased its user base by more than tenfold in just a few couple of months. With it, Axie Infinity undeniably gave an impact in NFT space where NFTs became one of the hottest topic and hot trend in 2021.
Axie Infinity saw enormous growth and success with its players with the fact that people can play a certain game but earning real money in a form of cryptocurrency while enjoying it. This was the reason why Axie Infinity's user base has widen so much especially in Asia that at the end became one of reason of some problems in the game's economy.
Smooth Love Potion Non-stop Minting.
Axie Infinity game is a dual token game - $AXS token and $SLP token with assigned usecases in the game.
$AXS is the main token for buying the NFT called Axie while $SLP is the reward token in the game that is given to players in every Arena battle they won and also for finishing Daily Quest and Adventure Mode. $SLP is also used to pay for breeding Axies in the game.
To make this short, $AXS only has limited supply while $SLP can be minted infinitely.
When Axie Infinity's user base had a huge growth, the problem start to be felt by its community as $SLP token started its downtrend chart and losing so much value.
Why?
Simple. $SLP keeps being minted and sold by players while having lesser demands, use cases and burning mechanism. Meaning, players keep on selling their earned $SLP in the game making the price of $SLP dropped. And this has been going on for more than 6 months now.
Axie Infinity's Heartbreaking Update For Its Economy And Players.
Few days ago, Jiho, the CEO of Axie Infinity game announced the removal of Adventure Mode of the game. The Adventure Mode is the specifically a starters guide on playing the game whilst rewarding the players every day if they finished the quest. This is basically a free money from the game and every players has taken advantage of it.
This move was to slowly stop the minting problem for $SLP and a shield from developers to protect the price of $SLP to keep going down and losing more of its value.
My Thoughts About The Update.
Personally, the new update for Axie Infinity could be very sustainable. However, this will only be in the short term. After the the update, we saw a huge jump in price for $SLP but it doesn't really mean that it will be like that for a long time because the main problems for $SLP is still there - infinite minting and lesser burning mechanism.
The game should be focusing more on a new burning mechanisms for $SLP for the game to be more profitable in the long run and save the game from crashing down.
When it comes to the price of $SLP, there is still a high chance that it could visit its all-time high price of $0.40 if there will be more good fundamentals or hype in the game, it could even take it to past all-time high if there is so much hype in the game and good huge volume of buyers. However, the main problem of Axie Infinity right now is competition because new NFT games are emerging that is even more profitable than Axie Infinity.
If you are a player who already got your return of investments in the game, I would recommend to hold your earned $SLP because right now there are a lot of positivity in the game and $SLP's price could even go higher because there are huge buying volume on it. But if you haven't got your ROI yet, it would be better to take advantage of the pumped price of $SLP and sell as much as you want or hold a percentage of it just in case there will be more uptrend for the chart of $SLP.
Is Axie Infinity Still A Good Investment?
If you are not using your emergency funds into it and only using your extra money, I can highly recommend the game because I know that Axie Infinity still has a lot of room to grow and more future updates are coming in the game and hopefully that the game can solve the minting problem of the game in the future.
But, if you are feeling hesitancy about the future of the game, I can only recommended to find other potential NFT projects because there are still a lot of them out there in the crypto space that can give you bigger returns. But also keep in mind that the bigger the rewards also comes with bigger risk and this is where you should do your research and managing your risk.
Final Say.
The crypto market will always be with us, if not, could be with us for a very long time. Lots of opportunities and more opportunities will come but when it comes your capital, one wrong move and the market will make it vanish from you. Always do your research, trade responsibly and manage the risk to take. Your money will not be anyone's responsibility but only yours.
Original Image Source: Google.
END.
Mura nalang ba axie team now? Si caris nakabili 1 bch..