Blockchain and cryptocurrency-based game Axie Infinity has gained a lot of traction recently, which can be seen as the rise of a new metadata mania. The project recently touched a $30 billion valuation, and subsequently its native token AXS has skyrocketed.
Axie Infinity (AXS) has risen nearly 200% in the past 15 days, with its price hitting an all-time high of $143 on Sunday, October 3. AXS is up 25% at $143 with a market cap of $8.3 billion. Daily trading volume has soared to $3.2 million, with much of it coming from Southeast Asia, particularly the Philippines and Vietnam.
Users play the Axie Infinity blockchain game by purchasing Axie characters as NFTs. It lets players collect, breed, raise, fight and trade token creatures known as Axies. Once a user has a set of three Axies, they can play against other users.
The native token AXS serves as the in-game currency for Axies Infinity. As a result, the growth in gaming revenue has led to an increase in the utility of AXS. Axie Infinity currently generates $1.5 billion in annual revenue, which puts it in the traditional gaming sector.
Rising adoption of AXS and Axies NFT
The rapid spike in AXS prices and the cost of Axies NFTs could deter new players from entering the space. However, the adoption rate of AXS remains high. In an article for Forbes explaining this, cryptocurrency analyst Joseph Young writes.
Despite the rising prices of AXS and Axie NFTs, user activity on Axie Infinity continues to increase, largely due to the rise of guilds. Guilds like YGG, Avocado Guild, and GuildFi essentially allow users to borrow Axie NFTs to play Axie Infinity and have a revenue sharing system.
Thus, with the help of guilds, users can play games like Axie Infinity without spending big bucks at the beginning. Users can also get NFTs from the guilds without high upfront costs.
The MMO mania is on the rise
The rapid growth of Axie Infinity is likely to further boost the metaspace or virtual gaming space. Tech giants like Facebook (NASDAQ:FB) have already announced that they will invest $50 million in global metaspace research. The social media giant will also collaborate with potential players in the field.
Animoca, a fund focused on metaspace is investing heavily in cryptocurrency-based games and NFT-related projects. Animoca recently released a teaser trailer for the NFT sci-fi game Phantom Galaxies. It also released another cryptocurrency-based game, Warena, which features users’ personalized characters with their own metaspace.
Well, this is just the beginning and we might see several blockchain-based metaverse games popping up in the coming months.