Busting Hopium: $SLP Token Will Reach $0.20 To $1.00 Because Of Axie Infinity Origin.

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Avatar for Mr.Valentine
2 years ago

Axie Infinity Origin is just around the corner and soon will be released after getting a delay due to an impact from the recent Ronin Bridge hack. Players are excited for the release as the new mode will give additional use-cases for the game's currency and speculates that $SLP will have more scarcity and that will be shown through its price.

Now to the main concern, people or the players of Axie Infinity are once again having hopium that $SLP token will reach again over $0.20 like it did during its 2021 bull run where the price almost reaches $0.50. At that time, Axie Infinity game had a lot of demands as the trend for NFTs were starting to build up and minted $SLP tokens are still less compared to its demand (e.g. breeding).

Axie Infinity gained a lot of attentions and onboarded investors and million of players through scholarship program around the globe. And this is how the problem for the reward token $SLP started as its supply keeps on increasing from infinite minting in the game that overtakes its in-game demands causing to slowly drop on its price and losing its value as players need to take profit from the game.

Why $SLP Will Not Easily Reach It's 2021 High.

Or worse... It will never reach that price level again ($0.46).

Source: Binance

The native token of Axie Infinity $AXS has a fixed supply - no more tokens can be added in circulation. While the reward token $SLP has an infinite supply and can be infinitely obtain from playing the game.

$AXS token can be more scarced and can have more demands because of its tokenomics while $SLP can only steadily lose its value because its use-cases are not enough to cover the supply being minted everyday.

According to Coinmarketcap and Binance Exchange, the price of $SLP right now (04/12/2022) is just over $0.017 with a market cap of $93 million. Currently, the circulating supply of $SLP is almost 5.4 billion tokens and this will keep on increasing if no other solutions can be found to fight the inflation.

Axie Infinity has a burning mechanism for $SLPs but the plan was not enough to save it from inflation. It is barely holding on from players breeding in the game to sustain and fight inflation.

Can $SLP reach $0.50?

The best answer for that is very unlikely. Why? Here is a calculation;

Let's say that the supply of $SLP will not change- no added supply and no burning of tokens.

Formula: Price x Circulating supply = Market cap.

Price = $0.50

Circulating supply = 5.4 billion tokens

Market cap = ?

$0.50 x 5.4 billion tokens = 2,700,000,000 or $2.7 billion dollars in market cap.

$SLP will need to have a market valuation of $2.7 billion dollars to reach $0.50 - take note, if there is no added and burnt tokens.

If this happens, $SLP will take over top projects in the market cap such as exchange tokens like $KCS, $HT and $WAVES. It will be almost even in market cap with $AXS token that is just over $2.9 billion. Reaching $0.50 price for $SLP would mean overtaking real projects with real-world use cases and market makers doesn't see any reasons for $SLP to reach that valuation.

As a reward token that can be obtain with no limitations, $SLP will just continue to suffer and experience hyperinflation in the future if the game behind it can't find a sustainable solution. The infinite minting of $SLP tokens in the game is currently the biggest problem in the economy of Axie Infinity as it lacks use-cases and not enough burning mechanisms.

Final Words.

This is my personal view and speculations about Axie Infinity and $SLP token. I deliver this article base on my observation, knowledge and understanding about the game and of course, for the better, I want to be wrong about this. However, metrics will speak for itself. With the release of Axie Infinity Origin, hopefully it will fix the current problem/s of the games in their economy. There will always be chance for $SLP to regain its past highs and it will be up only to the developers of the game on how they should act on it.

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2 years ago

Comments

Hanep may computation pang naganap haha. Basta ako walang slp. Pero nagbabalak akong mag buy nyan noon ee hmmm

$ 0.00
2 years ago

Para medyo klaro hahaha Naghold ako nyan dati pero 1 month lang

$ 0.00
2 years ago

Haha ang bilia man, ung iba naka hodl pa rin ata til now haha baka naipit

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2 years ago

Ipit talaga. 25 pesos to 1 peso laki ng binagsak hahaha

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2 years ago

Any chance to win from it?

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2 years ago

Kaya nga I give up my Scholarship na nakakapagod na laruin.. yung Pegaxy na lang pagtyagaan ko para ma Roi ko na binalik ko na profit. After non puro profit naman na until the game dies haha

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2 years ago

Tama, may chance pa naman tumaas VIS pero more likely talaga na bumaba pa. It's either sell kada sweldo o 50 sell at 50 hold. Haha

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2 years ago

Haha kung baba pa talaga yan pa rug na yan 😂 ambaba na nga eh 🤦 kaya nga ako focus na lang ako sa racing now. Tas sell sell na lang.. 1/4 na lang e hold haha di na 50/50 pra sure ang roi. Kung tumaas man edi at least may konting hold

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2 years ago

Haha ang importante kumikita pa 😂

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2 years ago

Ang VIS kya may pag asa pa? 😅

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2 years ago

Ayoko maglapag ng negativity kasi Investors kayo haha pero same lang (or almost) sila ng tokenomics ni $SLP. Infinite supply at baka bumaba demands nyan in the future. Depende nalang sa development at plano ng devs.

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2 years ago

Hahaha lapag mo na 😂 pero yeah depends on the game development and devs plan lang talaga. Infinite tokens kasi, I believe naman kaya pa e ROI nang mga investors ang Investment nila matagal nga lang talaga..

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2 years ago

To be honest di ako masiyadong bullish sa SLP, yung supply niya dati 3 Billion lang tapos ngayon 5 Billion na pala. More people are selling since they treat it as main job (source of income) especially dito sa Philippines.

For me mas okay pa AXS though kaunti knowledge ko dito pero maganda naman movement niya sa market.

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2 years ago

Slp kasi unlimited token, tuwing nadadagdagan ang supply tapos di kaya i-cover ng demand malamang sa malamang bagsak talaga kasi reward token, nae earn e.

$AXS talaga ang magandang investment and worth to hold. May kasabihan nga, do not hold the token if you can earn it... Pero syempre depende pa din sa use cases at demand

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2 years ago

Yep! Halos wala na pating burning mechanism yung SLP. Diba breeding lang yata ang way to sustain its economy? Kaso mura na mga axie ngayon sa marketplace so investors prefer to buy na lang instead of breeding kasi mas mahal pa minsan nagagastos dun haha

Oo goods din ako sa AXS, yung earnings ko from Axie kinoconvert ko sa AXS then stake.

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2 years ago