Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


What Value does Axie Infinity (AXS) Have?

The Axie Infinity Token (AXS) or Shard is attracting enormous amounts of attention.

For instance, CoinMarketCap named Axie Infinity (AXS) the most trending cryptocurrency on 4 October 2021. In addition, CoinMarketCap estimated that Axie Infinity Shards (AXS) were the 22nd most valuable cryptocurrency on 4 October 2021.

Furthermore, CoinMarketCap gave Axie Infinity a Coin Price of $137, a Market Cap of $8.344 billion, a Fully Diluted Market Cap of $36.964 billion, and a 24-Hour Market Volume of $4.263 billion on 4 October 2021. They based those estimates on a Circulating Supply of 60.908 billion AXS, a Maximum Supply of 270 billion AXS and a Total Supply of 270 billion AXS.

Axie Infinity is a nonfungible token (NFT) based video game developed by Sky Mavis. They set Axie Infinity in a Pokémon-inspired universe. Users can earn Axie tokens through gameplay or buy them with Ethereum (ETH).

How Axie Infinity Makes Money

The Axie Infinity whitepaper claims the game was the number one Ethereum game in terms of weekly, daily, and monthly active users in December 2020. The whitepaper claims Axie Infinity generated over 13,000 Ethereum (ETH) worth $16 million in revenues by December 2020.

Axie’s website claims users have traded over 90,000 Ethereum (ETH)in its marketplace. In addition, the website claims Axie Infinity had over 250,000 daily active users in September 2021.

Axie Infinity players can make money by:

  • Winning prizes in battles. Like Pokémon, the Axie characters battle for prizes in an arena. Users can assemble Axie armies to wage war on other players. They can also gather Axies in adventures in which they battle Chimera.
  • Breeding Axies for sale on the Axie Marketplace. The website claims the most expensive Axie sold for 300 Ethereum (ETH),or $10,178.28 USD on 2 October 2021.
  • Collecting and speculating on rare Axies. To elaborate, the Axies are NFTs based on the game characters.
  • Farming and selling the love potions you can use to breed Axies. They can sell the web potions on exchanges such as Uniswap and Binance.
  • Earning the AXS, Ethereum based governance token or shard. Each AXS represents a slice of the Axie Infinity game universe because they built governance rights and free sharing into it. Users can earn AXS by playing and engaging in quests.

Sky Mavis the Team Behind Axie Infinity

The Sky Mavis team built Axie Infinity as an educational tool to teach ordinary people about blockchain technology. The Crypto Kitties fad inspired many of the Sky Mavis team members. Hence, a good way to think of Axie Infinity is as a more sophisticated version of Crypto Kitties.

Sky Mavis is a Vietnamese studio that builds and promotes blockchain games. They describe the games as player-owned virtual worlds. Currently, Axie Infinity appears to be the only Sky Mavis game you can play. However, Sky Mavis has a real estate game they call Project K in development.

Sky Mavis has some impressive partners. Those partners include Samsung (KRX 05930), the Kyber Network, Binance, Upbit, Maker, Delphi Digital, AAVE, and Ubisoft.

What Value Could Axie Infinity Have

I think Axie Infinity is a fascinating idea for an investment. To explain, Axie Infinity is a game you can invest in. Anybody can own a piece of the game by buying Axie (AXS).

Hence, Sky Mavis is creating a new class of investments: games a person can invest in and speculate on. Thus, a games market similar to the stock market could develop. One advantage of this arrangement to give outsiders access to the games market.

The games market is enormous. Statista estimated the value of the Chinese game market at $40.85 billion in 2020, and the value of the US games market at $36.92 billion in 2020. Thus, the two largest games markets were worth $77.77 billion in 2020. In comparison, the third largest games market; Japan, was worth $18.68 billion in 2020.

Moreover, they base Axie Infnity on the most lucrative games franchise of all time, Nintendo’s Pokémon. Titlemax estimates Pokémon grossed $90 billion in revenues between 1996 and 23 March 2020. The second most value games franchise was The Mario Brothers. The Marios grossed $30.250 billion between 1981 and 23 March 2020.

Sky Mavis hopes to bring people locked out of the current games industry into the gaming market. For example, people in developing countries and independent games developers. Notably, they base SkyMavis in a developing nation: Vietnam.

Moreover, Mr. Market thinks Axie Infinity has value. CoinBase gave the Axie Infinity Shards (AXS) a Coin Price of $135.57, a Market Cap of $8.3 billion, and a $4.3 billion 24-Hour Market Volume on 4 October 2021. They base those numbers of a Circulating Supply of 60.9 million AXS. The typical speculator held AXS for nine days.

If you want to invest in an Ethereum (ETH) token, I think Axie Infinity (AXS) is worth investigating. Its developers to be making money by selling products actual people pay genuine money for: NFTs.

In the final analysis, I consider Axie Infinity a cryptocurrency worth watching.