Axie Infinity is among the first games to incorporate collectible and tradable NFTs. However, the game has recently failed to maintain the interest of current players and attract new ones.
This resulted in a decline in monthly sales that totaled less than $10 million.
This is not the worst decline in the history of the game. Compared to August 2021 of the previous year, August 2022 has had the highest fall in sales.
With 305,264 unique purchasers and 1.85 million attributed transactions, this indicates a decline in the game’s popularity.
The game has also been subject to one of the largest hacks in history, losing more than $600 million
Axie Infinity Dilemma: Attracting New Investors
One might comprehend investors’ reluctance to invest in anything that has suffered a significant hack.
The game’s network infrastructure has been questioned due to the security vulnerability.
As a result of the game’s emphasis on non-fungible tokens, it is apparent that the bear market had a negative impact on these tokens.
Almost every facet of the crypto market has been facing a severe bear market. The graphs for both cryptocurrencies and NFTs point downwards.
The volume of NFT transactions peaked in January of 2022 at $16.54 billion. In May, this number decreased to almost 4 billion.
AXS Token Taking Heavy Blows
Axie’s NFT side is not the only one struggling. AXS, the Axie Infinity token, has also been battling to stay afloat.
According to data from CoinMarketCap, the price of Axie Infinity’s token on September 1 was $14.19 before falling to $13.68.
Attracting new players or investors is another area where the game is having difficulty. Unique buyer counts for the game have been dreadful.
Even if the NFT market generated $19 million in April 2022, the crypto market meltdown in May made it difficult for the game to reposition itself.
This difficulty is reflected in the game’s $3.19 million in June sales — a terrible decline for the developers and the community.
Each day the market remains as pessimistic as it is now, Axie’s future becomes more tenuous. As difficult as the current market can be, Axie and its people nonetheless face a bright future.
A sequel to the original game is now available: Axie Infinity Origins. This product was released in April of this year. Origins was received favorably by the community.
Good things ahead?
AXS total market cap at $1.15 billion on the daily chart | Source: TradingView.com Featured image from Pixabay, chart from TradingView.com