Last week, Axie Infinity’s AXS token saw an impressive parabolic run, hitting a new all-time high of $ 19.60.
Small Love Potion (SLP), a token in the Axie Infinity (AXS) ecosystem shaped by gameplay as a reward for users, also broke into a triple-digit profit. SLP can then be used as currency to breed Axies, which are non-fungible token-based creatures that populate the Axie Infinity world.
Data from Cointelegraph Markets Pro and TradingView shows the price of SLP rose 102% from $ 0.127 on July 1 to a weekly high of $ 0.257 as new users flock to the digital battle pet game to earn and Axie’s sales to increase Infinity Ecosystem to new highs.
New users increase the demand for Axie breeding
SLP’s success depends in large part on the overall growth and adoption of Axie Infinity, which has seen a significant increase in new users since the protocol was migrated to the Ronin sidechain on the Ethereum network in early May.
A recent report from Delphi Digital highlighted that interest in the Axie ecosystem has grown at an “exponential rate” since the introduction of Ronin, with the greatest growth in the Philippines, Venezuela, Cuba, Qatar and the United Arab Emirates ( UAE) starts just before the end of April.
The increased interest has resulted in an influx of new users over the past two months as evidenced by the growth in daily active users, unique Axie owners, and the number of Discord members.
As new users enter the ecosystem, more Axies will be needed to get involved in the gameplay, which has resulted in increased demand for SLP as it involves breeding Axies.
Gameplay provides users with a daily income
One reason for the increased use for certain geographic reasons is in large part related to the economic struggles of the population in these regions.
Because users can earn SLP through gameplay or farming SLP on a daily basis, some attendees have made more money with Axie Infinity than college graduates have earned through work.
At current prices, SLP farming in Malaysia is even more lucrative than the salaries for fresh graduates
200 SLP @ 0.2 = $ 40 per day
(Takes 2 – 8 hours)
$ 40 * 5 * 4 = $ 800 per month = 3,200 RM
Gambling to earn disrupts the GLOBAL economy and it’s still pretty early h / t @nansen_ai pic.twitter.com/pUlQG7U051
– Darren Lau (@Darrenlautf) July 7, 2021
The breeding process can also be very lucrative for users fortunate enough to receive a “Mystic Axie,” a rare form of Axie that now has a floor price of 30 ethers, while Genesis lots in the Axie universe close to 270 ethers can achieve.
Another Genesis property has just been sold for nearly Eth 270. And the mystical minimum price climbs to 30 eth. This is just unreal. @AxieInfinity $ AXS pic.twitter.com/JAaRjpJU4c
– Seuchenhund (@seuchenhund) July 7, 2021
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As the ecosystem has grown since early May, Axie’s daily sales volume recently exceeded $ 25 million, with more than 50,000 NFTs sold per day.
To put the importance of the growth in revenue from the Axie Infinity ecosystem in context, the protocol has generated more fees over the past week than all of the other crypto applications combined.
Axie Infinity’s recent growth has been impressive, but it remains to be seen whether the current pace can be sustained and whether SLP’s long-term success depends on sustained expansion of the Axie ecosystem.
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