Following the meteoric rise in popularity of NFT cryptocurrency collectibles in early 2021, numerous blockchain-based gaming firms set out to capture a piece of the new industry. One of them was the independent game axie infinity by Sky Mavis.

The monster-battling game, which was inspired by Nintendo’s Pokemon franchise, resisted the recent crypto market crisis and boosted its active daily user base to over 1.8 million individuals globally. Furthermore, the native cryptocurrency of the blockchain-based game has soared to new highs.

According to statistics provided by Mejores Apuestas, the market value of axie infinity (AXS) tokens increased by 27,600 percent YTD to $7.9 billion last week, making it the most valuable NFT currency among the top ten.

After a massive airdrop and AXS staking, the market cap doubled in three days

Axie Infinity, a blockchain-based game, operates on the Ethereum blockchain with the support of a side chain named Ronin. Its play-to-earn strategy pays out crypto tokens that can be traded for cash to successful gamers.

After a massive airdrop and AXS staking, the market cap doubled in three days.

Axie Infinity, a blockchain-based game, operates on the Ethereum blockchain with the support of a side chain named Ronin. Its play-to-earn strategy pays out crypto tokens that can be traded for cash to successful gamers.

Axie NFTs, which enable players to participate in critical votes in the Axie world and constitute one of the company’s income sources, are also given to players. The gaming firm makes money by charging a 4.25 percent charge for buying and selling Axie NFTs on its marketplace, as well as collecting fees for generating and breeding token-based animals known as Axies.

According to CoinMarketCap statistics, the market cap of AXS tokens was $28.5 million in January of this year. This sum has almost doubled to $248 million by the end of the first quarter.

The cumulative value of all AXS tokens rose to $508 million in May, when Sky Mavis received $7.5 million in Series A investment, and then almost plummeted in the following weeks. The market worth of axie infinity rebounded in July, reaching over $1.5 billion, but it was nothing compared to the surge experienced this month.

Following the delivery of a major airdrop to early supporters and the opening of staking for AXS token, Axie Infinity’s price quadrupled and achieved a record high over $145 in the first three days of October, boosting its market valuation to $9.1 billion. Despite the fact that the sum dipped to $7.9 billion last week, it is still 290 times higher than January’s data.

Almost a twofold increase in growth compared to other leading NFT coins

When compared to other prominent NFTs, the rise of axie infinity’s native crypto is even more amazing. Sandbox was the second-fastest-growing NFT in 2021, according to CoinMarketCap statistics, with a 2,900 percent YTD rise and a market worth of $680 million as of last week. Chilliz tokens came in third place, with a market valuation of $1.9 billion and a growth rate of 1,607 percent during the same time period, about twenty times less than the market leader AXS.

Enjin Coin and Decentraland round out the top five, with market capitalization that have increased by 1,115 percent and 1,066 percent, respectively, since the start of the year.

How Axie Infinity is assisting unemployed gamers

Vincent Gallarte, a Manila-based information analyst, discovered an odd financial lifeline when he was let off in July: an online game that pays participants in cryptocurrencies. Mr Gallarte earned more than 37,000 pesos ($732) in his first two weeks of Pokemon-style questing and fighting, more than three times what he would have earned at his “regular job.”

Mr Gallarte, 25, had no prior interest in the world of Bitcoin, Ether, and other cryptocurrencies, as do many novices to so-called play-to-earn games. He now envisions a successful secondary business.

“The same day my company ended my employment, I began playing Axie,” he said. “I’m quite thankful.”

Axie Infinity is one of the most popular – and divisive – of the new games that enable players to collect tradeable cryptocurrency coins.

It provides a doorway to cryptocurrencies for individuals all around the globe, according to investors like billionaire Mark Cuban and Reddit co-founder Alexis Ohanian, who were part of a $7.5 million fundraising round for Sky Mavis, the creator of Axie Infinity, in May.

Others find indications that the axie infinity model is unsustainable, citing the high buy-in cost of more than $600 and the surge of newcomers “working” for low-value tokens.

The number of daily active users on Axie Infinity increased from 30,000 in April to over 1 million in August, with the majority of users coming from poor nations affected severely by the Covid-19 epidemic, such as the Philippines, Brazil, and Venezuela.

According to Etherscan, Axie, which was originally created on the Ethereum blockchain, has seen about $30 million in Ether transactions every day over the last month. In the $2.2 trillion cryptocurrency realm, that’s not much, but it’s significant for players – and governments – in poorer nations.

According to local media, the Philippines’ Department of Finance and Bureau of Internal Revenue notified players on August 23 that their Axie Infinity gains are liable to income tax.

Aleksander Leonard Larsen, Sky Mavis’ chief operational officer and co-founder, says they take their responsibilities seriously, monitoring in-game currency and modifying the market as appropriate.

“Some people compare us to the Federal Reserve,” he continues. “We are, in the end, the creators of this world, and it is our responsibility to ensure that it continues to exist. We’re continuously keeping an eye on the economy to make sure it’s in good shape.”

Players lead colorful, blob-like creatures known as Axies to gather two types of currencies in axie infinity’s online universe of Lunacia. Smooth Love Potions, or SLPs, are rewarded for winning fights and may be paid in or used to produce more Axies in the game.

Seasonal tournaments and selling Axies in the game’s marketplace may earn you Axie Infinity Shards, or AXS. AXS may also be paid out, however they’re supposed to work similarly to shares, like other governance tokens: Holders will ultimately be able to vote on new game features or corporate expenditure requests, according to Sky Mavis.

A relative told Mr Gallarte about the game. However, to get started, gamers will need three Axies, each costing about $200. That was simply too much for Mr Gallarte, who had just lost his job.

He looked for a sponsor, someone who would lend his Axies to new players in return for a share of their in-game earnings, which might be as high as 90%. Whatever a player makes with a loaned Axie goes to the owner, who is expected to send the player his portion.