According to CryptoSlam data, the blockchain game Axie Infinity has become the first NFT project to exceed $40 billion in sales, setting a new record in the history of blockchain games. So, will the game Axie Infinity continue to maintain its popularity in 2023? It is worth recalling that what once attracted attention in 2021 was the amazing price increase of the AXS token. However, the focus of this article will be on whether the price of the in-game incentive token SLP will continue to rise and the factors that drive the SLP price increase. Ahan will explain in detail below, please continue reading, there are also summaries and suggestions at the end of the article, I hope you can refer to them together. #SLP $SLP #AXS $AXS
First, let's take a quick look at the game and some important game announcements. Axie Infinity is currently a giant in the blockchain gaming space, far ahead of other similar blockchain games in terms of both user data and investment valuation. In the Axie Infinity game, SLP is a reward token that players can earn through in-game battles, and then sell and cash out on exchanges. In addition, SLP can also be used to breed pets in the game. Each breeding requires SLP, which forms a deflationary mechanism in the game. Players generate SLP while consuming SLP, creating an internal economic cycle.
Then, let's review a crucial game update that Axie Infinity welcomed at the end of January 2022. Once this major game reform announcement was released, the price of AXS tokens on exchanges soared by 40%, and the price of SLP tokens also increased by nearly 3 times at the same time. In short, the core goal of this reform is to reduce the output of SLP as much as possible. Now, players can only obtain SLP tokens through in-game battles, and the official is actively exploring other ways to increase the application scenarios of SLP tokens in the game to further promote the development of SLP tokens. If you are interested in this, please leave a message or ask a question, and Ahan will answer it wholeheartedly.
By adding a series of unique game elements, such as cosmetic skins, upgrades for Axie body parts, new emoticons and breeding activities, as well as allowing players to participate in paid tournaments and providing Axie naming functions, the game drives the price of SLP tokens by increasing the use of SLP tokens and internal consumption mechanisms. The core goal of this series of reforms is very clear, that is, to increase the market price of SLP tokens. It is expected that these reform measures will reduce the number of SLP tokens supplied daily, thereby stimulating price increases in the case of reduced supply. Overall, these internal reform mechanisms will become a driving factor for the rise in SLP prices.
In addition to these internal factors, there are also external factors that affect the price of SLP tokens. Below, Ahan will introduce some external factors that may affect the price of the currency.
The continued success of a game is usually inseparable from an efficient operation team, and the YieldGuildGames (YGG) game guild is the key driver behind this success. YGG was founded in 2020 and is headquartered in the Philippines. It initially operated around the blockchain game AxieInfinity. The two promoted each other. The popularity of AxieInfinity attracted more and more players to join, which gradually increased the rate of return and also promoted the rapid expansion of YGG. At present, the guild has established a complete industrial ecological chain, including player recruitment, training, and providing game loan support.
In 2021, YieldGuildGames also launched its own community token YGG, which gives players the right to participate in and manage the direction of the guild. In addition, YGG tokens can also be used to invest in NFT assets of virtual worlds and blockchain games. Everyone who holds a YGG token has the opportunity to participate in DAO governance in proportion to the total supply of their tokens. This model helps ensure the continued development of gaming guilds. In 2021, YGG successfully raised a total of US$22.4 million in funds, with investors including well-known institutions such as Delphi Digital, BITKRAFT, and a16z. YGG currently brings together the richest player resources in the blockchain game market.
In addition, a strong player organization is also an external driving factor for the success of the Axie blockchain game project. In addition to the internal factors mentioned above, the market environment also affects the price of SLP tokens. The price of SLP is not independent of the market. It is also affected by factors such as player activity, the enthusiasm of new players, the impact of various reform mechanisms in the game on the token economic model, and the bull-bear cycle of the entire blockchain industry. If the market falls into a bear market, the price of SLP may also fluctuate.
For example, due to the continuous decline in the price of SLP, the number of active players in AxieInfinity has dropped sharply, with a peak drop of up to 70%. According to data from December 2021 from the blockchain analysis platform Nansen, on the AxieInfinity-exclusive Ronin chain, the sales volume and daily active addresses of AxieInfinity NFTs are less than 300,000, which is more than 70% lower than the peak user activity of AxieInfinity. Current data shows that the number of daily active users of AxieInfinity remains at around 1.3 million.
Finally, let's summarize. From a long-term perspective, the prices of SLP and AXS will be closely related to the development of the entire gaming ecosystem. This connection will be reflected in the rapid development of the metaverse concept, the continuous improvement of on-chain performance, the continuous promotion of the NFT and DeFi fields, and the continuous optimization and upgrading of the project itself. However, the playability of the game and the strong support of the guild are equally important, and both are indispensable. As more and more new users join the ecosystem, it is foreseeable that the price of SLP is expected to rise significantly, including the game governance token AXS. That's all for today's discussion, and see you next time.
