Axie Profiting From Booming NFT Economy as Bitcoin Struggles
There is always a bull market somewhere. While the crypto market might seem boring now with its rangebound bitcoin trading, the non-fungible tokens (NFT) space continues to buzz. One lesser-known coin coming out of the NFT industry has charted a triple-digit price rally in two weeks.
Axie infinity shards (AXS) isn’t an NFT per se but the governance token of the Axie Infinity platform, an Ethereum-based digital marketplace for the game Axie Infinity. AXS has nearly quadrupled in price to $11 since June 22, according to data source Messari. Such gains have given the AXS token a market value of $638 million.
While bitcoin’s dip to $28,800 observed on June 22 was short-lived, buyers largely remain on the sidelines, leaving the cryptocurrency locked in the range of $30,000 to $40,000. But in the search for yield, buyers are turning elsewhere.
“AXS has been on a tear,” Denis Vinokourov, head of research at Synergia Capital, said. “With all the yield compression in bitcoin futures and decentralized finance, the hot money is now flowing into NFTs.”
NFT tokens' 30-day performance Source: Messari
Axie Infinity is a blockchain-based trading and battling game that allows players to collect, breed, raise, battle and trade token-based creatures known as “axies,” which are digitized as their own NFTs. Per Startups Zone, new players need to buy at least three axies, while existing players are rewarded for breeding new axies.
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Players can trade axies with their AXS tokens, stake their coins for weekly rewards and participate in governance voting. AXS tokens can be purchased, traded, or earned through playing the game, and their maximum supply is capped at 270 million. These tokens can be exchanged for other cryptocurrencies.
The gaming-NFT economy has boomed in recent weeks. With a 30-day trading volume of $185 million, Axie Infinity has surpassed NFT heavyweights including NBA Top Shots, OpenSea and CryptoPunks to become the world’s biggest digital marketplace, as ranked by their average daily volume over the past seven days, according to DappRadar.
What’s more impressive is that Axie Infinity has generated more revenue than Aave, Compound, Uniswap, and other decentralized finance (DeFi) protocols over the past 30 days, data tracked by Token Terminal shows. Axie Infinity generates revenue from axie sales, land sales, axie breeding fees and marketplace fees.
Top Dapps and blockchains as per 30-day cumulative revenue Source: Token Terminal
With a cumulative volume of $30 million, Axie Infinity leads PancakeSwap, ranked number two, by a margin of 48%. Curve, Ethereum’s biggest DeFi protocol by total value locked, has generated only one-tenth of Axie’s 30-day revenue.
The boom in the play-to-earn economy comes amid falling yields in the bitcoin and DeFi markets.
For example, borrowing rates for tether, the largest stablecoin by market value, have declined to 2.84% on Compound and 1.43% on Aave, from over 10% three months ago, according to LoanScan. Lending rates have also seen a similar decline, converging with the current 1.41% yield offered by the U.S. 10-year Treasury note.
“With the speed at which money appears to be entering the space, the increased stablecoin supply may make it so DeFi never quite sees the consistent 10% plus yields of the last year, a trader told The Defiant.
Therefore, the search for yield could continue to drive demand for Axie Infinity and other play-and-earn setups.
“All things NFT will likely be the main beneficiaries of the said hot money flow,” Vinokourov said, adding Rarible, also an NFT marketplace, as a likely contender for upside along with Axie Infinity.
What is Axie Infinity? How to Buy Axie Infinity (AXS) • Benzinga Crypto
Want to jump straight to the answer? You can buy AXS on Binance.
Axie Infinity $24.86 Buy Axie Infinity MOON BUST 8 votes
With non-fungible tokens (NFTs) becoming popularized by CryptoPunks, NBA Top Shot and Beeple collectibles, other use cases for NFTs are gaining in popularity. One clear use case for NFTs is in gaming, and Axie Infinity has capitalized on this.
With Axie Infinity, users can buy and sell in-game items like Axies (in-game characters), plots of land and even accessories for their Axies. This grants players the ability to earn cryptocurrency for simply playing a game: a new phenomenon called play to earn.
What is Axie Infinity?
Axie Infinity is a blockchain-based gaming platform that’s considered a play-to-earn game. This means that players can actually earn cryptocurrency through playing Axie Infinity, allowing players to generate a stream of income they would otherwise not have.
The game consists of Axies, which are creatures used to progress through the game. Each Axie is an NFT that can be bought and sold on NFT marketplaces. Gamers earn Small Love Potions (SLP) for completing levels, which can also be bought and sold on exchanges like Uniswap.
A few different tokens are offered in Axie Infinity, all with distinct purposes. Here are its main tokens:
Axie Infinity (AXS) is the governance token for Axie Infinity. If you’re looking to invest in the gaming platform, then you should buy this token. Although there currently isn’t any revenue generated through this token, the cryptocurrency grants holders governance rights to vote on the future of the gaming platform.
is the governance token for Axie Infinity. If you’re looking to invest in the gaming platform, then you should buy this token. Although there currently isn’t any revenue generated through this token, the cryptocurrency grants holders governance rights to vote on the future of the gaming platform. Nonfungible tokens (NFTs) are in abundance on Axie Infinity. Some users buy them as investments, while others buy to play the game. Axis (the in-game creatures), land and other valuables that can be bought and sold on Axie Infinity’s marketplace are NFTs.
are in abundance on Axie Infinity. Some users buy them as investments, while others buy to play the game. Axis (the in-game creatures), land and other valuables that can be bought and sold on Axie Infinity’s marketplace are NFTs. Small love potions (SLPs) is another Ethereum-based token Axie Infinity uses on its platform. These tokens can be used in-game to breed Axies, as well as level up your creatures. You can think of SLPs as experience points that can be bought, sold or used.
Here’s the catch: To play Axie Infinity you need to own at least 3 Axies to play. The cheapest Axies are selling for around $200, so you’ll need to spend $500 to get started playing today. However, these Axies can be sold on the marketplace, so you may be able to get your money back or even make a profit when you’re done playing.
Brief History of Axie Infinity
Axie Infinity began development in late 2017, and has since released a ton of features on its gaming platform. The actual game, Axie Infinity, was released in May 2018 with just one feature — breeding Axies. Users were able to buy and sell Axies, as well as breed Axies to use in-game or sell on marketplaces.
Since its inception, Axie Infinity has released player versus player battles, NFT plots of land and idle battle modes. These features work together to make a complete blockchain-based game that’s not only fun to play but lucrative.
In the near future, Axie plans to release staking for AXS, allowing token holders to earn interest on their investment. Also, Axie will be launching gameplay integrated with the plots of land currently for sale, giving the otherwise useless land in-game utility.
Follow these simple steps to get started with AXS.
Open an online account. To invest in AXS, you’ll need a cryptocurrency exchange account with a platform that supports the Axie Infinity token. Currently, the most accessible place to purchase Axie tokens is on Binance.
Binance allows you to invest in Axie tokens in a few different ways. You can choose to use stablecoins pegged to the U.S dollar (USD) or you can use Bitcoin (BTC) to invest in Axie tokens. Using Bitcoin as the basis for altcoin investments can be helpful, as it compares your altcoin’s performance to that of Bitcoin’s. Buy a wallet (optional). If you don’t plan on actively trading your crypto, using a cryptocurrency wallet is a must. Cryptocurrency wallets let you control your cryptocurrency, whereas centralized exchanges hold custody of your funds. Many exchanges have been hacked in the past, as centralized crypto exchanges are huge targets for online hackers. Make your purchase. Once you’ve made an account with Binance and decided where to store your tokens, it’s time to make your purchase. You can buy your Axie Infinity tokens in two ways on Binance: as a limit or market buy order.
Market orders will invest in the token you seek to purchase at the market price, and the order will typically be filled within a few seconds. Conversely, you can place a limit order to buy your tokens at a prespecified price. However, if the token doesn’t fall to the price on your limit order, then the buy order will never be filled.
Best Hardware Wallet: Ledger Nano S
Hardware wallets are physical devices that store your cryptocurrency offline. They are generally considered the most secure way to store cryptocurrency — your funds will be inaccessible from the internet.
The Ledger Nano S is among the most affordable hardware wallets on the market, coming in under $60 for the device. Plus, the Ledger Nano S is a multicurrency wallet, meaning that you can conveniently store thousands of different cryptocurrencies all on the same device.
Best Software Wallet: Coinbase Wallet
Software wallets are a great choice for investors who aren’t looking to shell out the money for a hardware wallet. Software wallets are programs that store your cryptocurrency on your desktop or mobile device and they’re generally free to use.
Coinbase Wallet is one of the best software wallets on the market, and it’s free to install on iOS and Android. Not only does the wallet let you store a variety of different cryptocurrencies, but you can also trade crypto directly from your wallet using innovative DeFi technology.
Trade, Sell or Convert your AXS
Since most cryptocurrency wallets won’t let you trade, sell or convert your tokens from inside your wallet, you’ll need to send your tokens back to a cryptocurrency exchange to do so. Binance has both stablecoin and Bitcoin trading pairs, so you can choose to sell your investment for either USD or BTC on the exchange.
Current Crypto Prices
The cryptocurrency markets have seen a sharp downturn after appreciating over 100% in a span of just a few months. Even with the recent market lull, Axie Infinity tokens have appreciated to a new all-time high of over $10 per token. With the crypto markets open 24 hours, you may want to use a cryptocurrency portfolio tracker to keep track of your investments.
Is Axie Infinity a Good Investment?
Axie Infinity has shown better returns than most other cryptocurrencies, making it an attractive investment for those bullish on blockchain-based gaming. With the game slated to release on iOS and Google Play this year, there may still be room for AXS to grow.