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What is Axie Infinity? What you need to know about AXS, Sky Mavis’s crypto game token

By Ankish Jain

Edited by Vanessa Kintu

10:06, 4 November 2022

Axie Infinity logo on smartphone with game background
Axie Infinity is a computer game in which teams of adorable monsters known as Axies fight against one another Photo: photo_gonzo / Shutterstock

With the advent of blockchain-based gaming platforms such as Axie Infinity (AXS), play-to-earn (P2E) games became a mainstream trend in 2021.

Axie infinity bills itself as a Pokemon and Tamagotchi (a portable digital pet in Japan) inspired game that uses non-fungible tokens (NFTs) to represent unique species, skills, land plots and other in-game assets.

During last year’s P2E boom, the platform’s AXS token achieved an all-time high of $165.37 on 6 November 2021, according to CoinMarketCap. However, with the broader market’s severe bearishness, AXS fell to a 52-week low of $8.21 on 24 October. 

As of 2 November, the token was trading at $9, down nearly 95% from its all-time high.

AXS live price chart

How will the token perform in the coming months in the face of challenging global developments and a dwindling market cap? Before we get into all there is to know about the coin, let’s understand what Axie Infinity is.

What is Axie Infinity?

Axie Infinity dates back to early 2018 and the efforts of Trung Thanh Nguyen, Aleksandar Leonard Larsen and Jeffrey Zirlin, who all co-founded the Ho Chi Minh City-based game studio Sky Mavis in 2018.

Sky Mavis secured $1.5m through fundraising in November 2019 to speed up the development of Axie Infinity. Notable investors like Yat Siu of Animoca Brands, Sébastien Borget of The Sandbox and Simon Kim of Hashed were drawn to the project.

Axie Infinity is a computer game in which players pit teams of adorable monsters known as Axies against one another. Axies are designed for fighting. Four statistics judge their combat efficiency:

  • Health: Health controls how much damage an Axie can sustain before being defeated.

  • Speed: The turn order is determined by speed, with the quickest Axies attacking first.

  • Skill: Skill increases damage when an Axie plays several ability cards concurrently.

  • Morale: The critical strike probability of an Axie, which affects its capacity to incapacitate an opponent, is increased by its morale value.

The game operates on the Ethereum (ETH) blockchain with the assistance of Ronin, a sidechain that reduces transaction costs and delays. 

Axie Infinity focuses primarily on combat against computer-controlled Axie teams or live Internet opponents. While playing the game, users can sell objects such as the Axies they produce, in-game real estate and accessories on the NFT marketplace, and gain tokens generated by the game.

The game utilises two unique cryptocurrencies:

  • Axie Infinity Shards (AXS): This ERC-20 utility token is required to play the game and acquire different in-game assets. Through staking, AXS also functions as a governance token, allowing its holders to vote in the game’s development.

  • Small Love Potion (SLP): This is the token players get for spending time in-game. Users may earn them by defeating an opponent's Axie or completing objectives. The more someone plays, the more SLP they may accumulate.

According to Axie Infinity’s whitepaper, the game is progressively transforming into a decentralised autonomous organisation (DAO), allowing total community control.

Axie Infinity has released a detailed roadmap of its future objectives. The road map includes all significant previous and future milestones, indicating continuous development.

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Axie Infinity (AXS) historical performance

According to ICO Drops, AXS concluded its initial coin offering (ICO) in November 2020 at a token price of $0.1 and raised $2.9m via its token sales.

According to CoinMarketCap, AXS has yielded a return on investment (ROI) of 8,903% as of 2 November, implying 89x profits for early investors.

The coin was introduced in 2020, but didn’t gain momentum until 2021. The Axie Infinity game token surged from $0.44 on 13 January to $10.72 on 29 April in January 2021, a 2,336% increase, with bullish market sentiments in the larger cryptocurrency market.

The price of the axie infinity game token fell to $3.18 on 23 June as a result of the general bearishness of the cryptocurrency market.

While subsequent market sentiment remained unfavourable, the axie infinity coin gained its footing and enjoyed tremendously bullish investor sentiment. Due to this optimism, AXS achieved an all-time high of $165.37 on 6 November, a 5,100% increase from its June low.

Nonetheless, after this peak, the token lost some momentum, falling to $92.91 on 14 December. It closed the year at $95.09.

BTC/USD

65,469.80 Price
-0.620% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

SOL/USD

178.98 Price
+2.380% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652

XRP/USD

0.62 Price
+2.640% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

DOGE/USD

0.13 Price
-1.410% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

Many cryptocurrencies had a poor start to 2022, and AXS was no exception. The token price hit $46.98 on 29 January, an 72% decrease from its all-time high that continued the bearish trend from 2021.

The price fluctuated sideways between February and March, reaching $71.66 on 26 March amid modestly positive sentiments. However, persistent bearishness and the collapse of LUNA-UST had a cascading impact on the axie infinity coin price. On 12 May, it fell to $18.93, a decline of more than 73% from its March peak.

At the time of writing (3 November), the coin has continued to struggle to establish its footing and fell to a 52-week low of $8.21 on 24 October. AXS was trading at $9, as of 2 November, with a market cap of $862m.

Axie Infinity news and price drivers

Axie Infinity has undergone several important milestones lately. Here is a quick recap of some crucial news pieces.

Release of previously restricted tokens

According to blockchain data from Token Unlocks, on 26 October, Axie Infinity issued the first batch of previously restricted tokens to early investors and insiders.

Vesting periods guarantee that early investors do not instantly sell their assets since they are compelled to retain their cash for a defined time.

Approximately 22 million AXS were issued during this period – 26.6% were delivered to the team, which got 5.7 million AXS in total; 4.8 million AXS were allocated to staking incentives; and 4.7 million was placed aside for player profits. The remaining 6.3 million were distributed to advisors, the ecosystem fund and private sale investors.

Notably, the AXS token hit a 52-week low price of $8.21 during the token unlock schedule, indicating that investors swiftly booked profits upon token allocation.

Decline in active players

According to the gaming analytics website Active Player, the average monthly number of gamers playing Axie Infinity has dropped to 701,447, a low not seen since January 2021.

The monthly Axie Infinity players peaked at 2.78 million in January this year, just before the crypto winter struck. In June alone, Axie Infinity lost 1.2 million players.

Axie Infinity price forecast: 2022 and beyond

According to the axie infinity price forecast from CoinCodex based on technical analysis, as of 2 November, the coin price could increase by 0.74% to reach $8.95 by 9 November 2022.

Meanwhile, algorithm-based forecasters gave mixed long-term Axie Infinity price forecasts.

Wallet Investor stated it believed the AXS coin could be a “bad long-term investment”. It expected the average price to hit $1.084 by the end of 2022. It further forecast the coin to continue its downward trend and sink to $0.728 by the end of 2025.

DigitalCoinPrice’s AXS forecast suggested the average price in 2022 could be $8.87, rising to $14.46 in 2023 and $23.36 in 2025. It suggested that the token price could increase to $39.69 in 2029 and $49.03 in 2030.

Price Prediction’s suggested AXS could average $10.98 in 2022 and $34.34 in 2025 and $226.68 in 2030.

The bottom line

Axie Infinity (AXS) has not maintained a constant performance and has struggled to survive the crypto market slump. 

When looking for Axie Infinity forecasts, it’s important to remember that analysts’ and algorithm-based expectations can be wrong. They are based on technical analysis and historical price action. Past performance is no guarantee of future results.

It’s essential to conduct your own research before trading. Remember that your decision to trade depends on your expertise in the market, the spread of your portfolio and how comfortable you feel about losing money. You should never trade or invest money that you cannot afford to lose.

FAQs

Axie Infinity (AXS) historical performance

Axie Infinity is a blockchain-based computer game in which users acquire Axies and pit them against one another in combat. It was built by the game company Sky Mavis and operates on the Ethereum blockchain.

Is Axie Infinity a good investment?

Axie Infinity was among the top-performing cryptocurrencies in 2021 and has established a solid footing in the P2E market. 

However, whether it is the right investment for you is a personal decision that will depend on your risk tolerance and investing strategy, among other factors. You should do your own research to take an informed view of the market and decide whether Axie Infinity is an appropriate fit for your portfolio.

Is Axie Infinity good for the long term?

At the time of writing analysts were mixed on the long-term potential of AXS Wallet Investor believed it would be a “bad long-term investment” while DigitalCoinPrice and PricePrediction had it rising.

We recommend that you always do your own research, and gain a thorough understanding of the definition of Axie Infinity, the latest market trends, news, technical and fundamental analysis, and experts opinions before making any investment decision. And never invest more than you can afford to lose.

Markets in this article

AXS/USD
AXS/USD
6.07 USD
-0.05 -0.840%
ETH/USD
Ethereum / USD
3331.11 USD
-154.9 -4.450%

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