• Gaming money-making giant Axie Infinity saw a 40% drop in revenue in September.

  • Blockchain game Axie Infinity’s rapid growth came to a screeching halt in September, with revenue falling 40 percent from August, the first monthly decline since January.

    The beat-em-up game, which uses non-fungible tokens (NFTs) to reward players, earned 64,933.71 ethereum (ETH) worth $220.32 million in September, down from a record $342 million in August, data hub Axie World showed. While September’s numbers were up nearly 3,000 times year-over-year, that’s only about 10% of the previous month’s pace.

    Among blockchain-based applications, Axie’s monthly revenue was second only to Ethereum’s $830 million, according to data provided by Token Terminal. The popularity of the gaming economy can be seen in the fact that Axie Infinity receives significantly more revenue than decentralized finance (DeFi) heavyweights like SushiSwap, Aave, Compound and Curve.

    Launched by Sky Mavis in 2018, Axie infinity entered the spotlight early in Q3 as yield compression in Bitcoin and decentralized finance drove hot money into gaming and NFTs.

    Gaming has become a significant source of revenue in countries like the Philippines, Vietnam, Venezuela and Brazil. It has become so popular in the Philippines that the government has said it intends to tax Axie players.

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