Axie Infinity Shard (AXS) rose 1900 percent in 3 months, after touching the highest price today, Monday (4/10/2021), US $ 153.28. The market value is US$9 billion.
AXS Crypto is the default cryptocurrency from the famous game Axie Infinity made by Sky Mavis from Singapore.
AXS is a cryptocurrency that is given in exchange for playing the game, including another cryptocurrency, namely Small Love Potion (SLP).
Many cryptocurrencies have experienced significant price drops since May. But it seems like every few weeks, there is an exception. From Keep Network to Baby DogeCoin, lesser-known cryptocurrencies will make headlines with big price spikes.
Axie Infinity (AXS) is the latest. The price jumped by almost 550% in just a month. On June 15, it traded at $4.45 and by July 15 it had hit an all-time high of $28.61. According to CoinMarketCap data, it’s been down since then and is at $15.03 at the time of writing.
Let’s see why Axie Infinity suddenly became famous and whether it’s still any good.
What is Axie Infinity?
Axie Infinity is where cryptocurrency meets gaming. Axie’s mission is to bring blockchain technology to the masses in a fun way. It is play-to-earn crypto built on the Ethereum (ETH) network.
Users can earn Axie Infinity Shard (AXS) tokens and another in-game token, Smooth Love Potion (SLP) in several ways.
To earn tokens, players breed, raise, and battle Axies in this Pokemon-inspired universe. Investors who don’t want to play the game can buy both tokens on a decentralized exchange.
Like CryptoKitties (the collectible digital kittens leading the NFT craze), Axies are cute digital pets — and each one is unique. They are also non-fungible tokens (NFT) that can be bought and sold.
The lowest-priced Axies currently available cost around $200 and the most expensive sell for 300 ETH (nearly $550,000). You need to buy three Axies to be able to participate in the game.
This earning potential is what makes this game so popular, especially in developing countries. And it is this high turnout that drives Axie’s impressive income stream.
According to CoinDesk, Axie generated more revenue in June than major decentralized exchanges like Uniswap and Aave.
Should you buy it?
There are a few questions to consider before you buy the Axie Infinity.
Are you interested in crypto games?
As with any investment, buying something you don’t understand in the hope that the price will go up is not a good idea. Therefore, it is important to understand the crypto game if you want to buy this coin.
This is certainly an interesting segment of the cryptocurrency industry, especially since NFT has revolutionized the concept of in-game assets.
As blockchain technology develops, crypto platforms may be able to host more complex games and we will most likely see more pay-to-earn coins like Axie.
But there are still some hurdles for the technology to jump on. The main one among them is scalability. Most applications are built on the Ethereum network, and until they can be scaled up, the platform is dense and transactions expensive.
For Axie, her massive growth has raised some technical issues. This includes a three-day blackout earlier this month.
Would you like to participate in Axie?
When you buy crypto, you are often buying communities as well as coins. Some coins are based on the active participation of token owners. If you buy coins as an investment — with no intention of joining — you may not reap the full rewards.
For example, Axie will soon introduce staking. This allows token owners to tie up their coins for a certain period of time and earn interest.
However, staked Axie tokens will be tied to your participation — either by playing the game or voting in governance decisions.
Investors earn money from Axie if the coin value increases. But Axie gamers earn money from Axie by actively participating in the game. I would argue that if you are considering buying Axie, you should at least understand the crypto game. And ideally, you should want to play the game.
Do you see the strong long-term potential?
When the coin jumps 550% in a month, you have to wonder how far it can go. There is a common pattern of people piling up coins simply because the price goes up.
This not only pushes the price up further but also increases the risk that the investor will buy at a high price. That’s why it’s important to do your own research and think long-term.
On paper, Axie has a lot going for it:
- It is one of the top gaming cryptos by market cap.
- Its senior team has experience in blockchain and gaming.
- It has a whitepaper with a clear roadmap and goals.
- It makes money. According to Token Terminal, which measures the revenue of various protocols, Axie Infinity made $40.2 million in the last seven days alone.
- Billionaire and crypto enthusiast Mark Cuban joined Axie’s latest funding round where he raised $7.5 million.
But those big price spikes made it feel like a quicker move than a long-term investment. Here are some of the biggest Axie-specific risks:
- Axie may be experiencing more server issues or facing different technical issues.
- If Axie’s value drops, participating in the game will not be so profitable and the community can continue.
- Given the pace of technical development, there’s always a chance a newer game will knock it off the top spot.
Are you comfortable buying from non-US exchanges?
Axie is not available on major US cryptocurrency exchanges. This may change over time, but it means that it is difficult for US residents to buy tokens.
Buying from an exchange that is not licensed to operate in the US carries additional risks. Investors may find themselves unable to sell certain coins or have their accounts frozen altogether.
We may see another price spike if Axie can be listed in the U.S. But for now, it looks like an interesting cryptocurrency to have on your watchlist.
Take some time to understand the gaming industry and see if prices stabilize after that big jump.
Leave it to the gamers
Axie looks fun, and I’ve added it to my watchlist. But I’m a board gamer, not an online gamer — and I’m not a collector. Personally, I don’t want to buy Axie Infinity until I’ve played the game, raised my own Axies, and immersed myself in that world.