While most cryptocurrency markets experienced declines, Axie Infinity, the blockchain-based trading and battle game, saw its native token AXS hit a new all-time high of $21.55 on Tuesday, July 13, 2021. Another token from the gaming economy, Smooth Love Potion (SLP), also surged to an all-time high of $0.39 on Binance during the same session.
AXS and SLP: Meteoric Rise
According to CoinGecko, AXS gained 86.72% against the U.S. dollar over the past seven days and an astonishing 410.11% over the trailing 30 days, far outpacing Bitcoin and Ethereum. Its market capitalization stood at approximately $1.3 billion, with $1.2 billion in 24-hour trading volume. Among thousands of cryptocurrencies, AXS ranked 74th on July 13.
SLP, which players earn by battling in the game's adventure mode, also reached its peak price of $0.39. Both tokens are tradable on major exchanges including Uniswap, Binance, Bkex, Digifinex, and Huobi.
Play-to-Earn Mechanics
Developed by Sky Mavis (founded in 2018), Axie Infinity is an Ethereum-based NFT game where players collect, breed, and battle creatures called Axies. The play-to-earn model rewards players with SLP and AXS through PvP combat. To start, users must install the Ronin wallet, Ronin bridge, and MetaMask, and own at least three Axies from the marketplace.
While the play-to-earn structure has attracted massive adoption, critics have labeled it a borderline Ponzi scheme due to the upfront cost (ETH required to purchase Axies) and the dependency on new player inflows to sustain rewards.
Controversy and Sustainability Concerns
Social media platforms were filled with accusations of Axie Infinity being a pyramid scheme. One Twitter user wrote: “Is it just me or does Axie Infinity feel like a Ponzi/pyramid scheme?” Blockchain gaming blurs the line between gaming and finance, and Axie Infinity's explosive growth highlights both the innovation and the risks inherent in the crypto space.
As the project continues to expand, its long-term viability remains a topic of debate among investors and gamers alike.