Key Takeaways
- Axie Infinity recently surpassed $3 billion in all-time sales.
- In a recent study, Naavik researchers explain that Axie Infinity players known as scholars are seeing daily earnings drop, with many falling below the minimum wage line in countries like the Philippines.
- The game has raised $3.23 billion in total non-fungible token (NFT) sales.
One of the most popular video games hosted on a distributed ledger network is Axie Infinity. It is an Ethereum-based blockchain game. The game was created by the Sky Mavis studio. According to data from dappradar.com, the game has raised $3.23 billion in total non-fungible token (NFT) sales. The game was first released in 2018. Sky Mavis is based in Ho Chi Minh City, Vietnam.
Sky Mavis recently announced the launch of Axie Infinity’s native decentralized exchange (dex), Katana. According to statements written by Naavik researcher Lars Doucet, the blockchain gaming project has seen exponential growth during the first half of the year, while the average player’s daily earnings are declining. The report discusses blockchain gaming, NFTs, and Axie Infinity, and is written by Naavik, a research, consulting, and advisory firm. The research report is extremely detailed and discusses the numerous developments surrounding Axie Infinity and Sky Mavis’ massive growth.
In a study on NFT gaming platforms, the Narvik researcher, along with Jimmy Stone, Anthony Pecorella, Aaron Bush, and Abhimanyu Kumar, debated whether Axie Infinity is “unlimited opportunity or unlimited risk.” On Twitter, Doucet has also shared some of the report’s findings and engaged in a lengthy discussion about the project.
Doucet wrote on November 12 that after months of incredible growth, the daily earnings of the average Axie Infinity player a ‘scholar’ in the Philippines have fallen below the Philippines’ minimum wage line. They have even seen earnings decline since August. He even said that ‘Scholars’ are players, typically from developing countries, who are unable to afford the [three] Axies required to play the game. These assets are loaned to them by sponsors, who take a cut of their earnings.
According to Naavik’s researchers, the game’s rapid growth may be slowing. This month-over-month DAU growth trend indicates that Axie Infinity’s growth spurt is somewhat decelerating, but a deceleration following such an impressive burst of growth is to be expected.
According to Naavik’s research, the majority of Axie Infinity players are from low-income areas, and their primary motivation is to earn money. As a result of this trend, the game’s retention rate is more akin to the retention rate of a job, not a game. According to the study’s authors, this isn’t necessarily a bad thing, but it provides a different perspective than today’s most popular video games. To sum up, Axie Infinity’s growth is slowing and the majority of its player base treats the game like a part-time job to make ends meet.
