This year has seen incredible growth for the blockchain game Axie Infinity, produced by Sky Mavis, which has recently surpassed $3 billion in all-time sales. However, Naavik researchers explained in a recent study that daily earnings for Axie Infinity players, known as “scholars,” are declining, with many having fallen below the minimum wage in countries like the Philippines.
Naavik researchers conducted an in-depth study of Axie Infinity – and the earnings of “scholars” have been declining since August.
Axie Infinity, an ethereum-based blockchain game, is one of the most popular video games hosted on the distributed ledger network. The game, developed by a studio called Sky Mavis, has generated $3.23 billion in historical non-fakeable token (NFT) sales as of this week.Sky Mavis launched the game in 2018, and the company is based in Ho Chi Minh City, Vietnam.
Just recently, Sky Mavis revealed the launch of Axie Infinity’s native decentralized exchange (dex) called Katana.According to a statement written by Naavik researcher Lars Doucet, while blockchain gaming projects have seen exponential growth in the first half of the year, the typical player’s daily revenue has declined.Naavik is a research, consulting and advisory firm, which discusses blockchain gaming, NFT and Axie Infinity.
Naavik researchers, along with Jimmy Stone, Anthony Pecorella, Aaron Bush and Abhimanyu Kumar, published a study on the NFT gaming platform and discussed whether Axie Infinity is an “infinite opportunity or infinite danger. “Doucet tweeted revealing some of the report’s findings and discussing the project in detail in a thread.
“After months of incredible growth,” Doucet wrote, “the typical Axie Infinity player (‘scholar’ in the Philippines) has seen their daily income fall below the minimum wage in the Philippines, and even they, except for high ranking players, have seen their income drop since August.
“‘Scholars’ are players usually in developing countries who cannot afford to buy [the three] Axies (virtual Pokémon like creatures based on NFT) that are necessary to play the game. they are lent these assets by ‘sponsors’ who take a cut of their earnings,” Doucet added. The study is extremely in-depth and discusses many of the developments surrounding the tremendous growth of Axe Infinity and Skyhorse.
Naavik researchers: ‘Axie Infinity’s growth rate has declined’ – ‘Games own job retention Naavik researchers explain that the team has also raised several rounds of seed funding from investors such as Consensys, Delphi Digital and Animoca Brands. The findings also noted that “Axie Infinity has seen a sharp rise in daily active users (DAUs)”, with cumulative DAUs of around 1.45 to 1.95 million daily active users from September to October. The report details that the Philippines and Venezuela are the top two most popular regions for Axie Infinity globally.
At the same time, Naavik’s researchers said the game’s growth momentum may be slowing down.” This month-by-month DAU growth trend suggests that Axie Infinity’s growth spike has decelerated somewhat, but a slowdown is to be expected after such an impressive burst of growth,” the study detailed.” The deceleration is also supported by the following Google Trends charts in the Philippines and Venezuela, as well as globally.”
Naavik’s study explains that the majority of Axie Infinity players come from low-income areas and that “the primary motivation is to make money.” The study highlights that due to this trend, the game’s retention rate is more like “the retention rate of a job than a game.” The study’s researchers note that this “isn’t necessarily a bad thing,” but it gives a different perspective than today’s most popular video games.
“It is likely that long-term retention and DAU growth will continue to be healthy as long as Axie Infinity enables its predominantly academic player base to earn more than they would if they were doing their normal jobs in their home countries,” the Naavik authors argue.” All in all, Axie Infinity’s growth momentum is decelerating (albeit still positively), with the majority of its player base viewing the game as a day job to meet their daily financial needs.”