Axie Infinity has defied the broader crypto market downturn, with its two key tokens reaching new price peaks on Tuesday. The native governance token AXS surged to $21.55, while the utility token Smooth Love Potion (SLP) hit $0.39, both setting all-time highs. The rally comes as the blockchain-based battle game continues to attract players and investors, though concerns about its economic sustainability persist.
Skyrocketing Demand for AXS and SLP
According to CoinGecko data, AXS has surged 86.72% in the past seven days and an astonishing 410.11% over the trailing 30 days. Its market capitalization now stands at approximately $1.3 billion, with daily trading volume exceeding $1.2 billion. The token holds the 74th position among all cryptocurrencies. SLP, which serves as an in-game reward and breeding fuel, also witnessed massive buying pressure—up over 200% in the same period.
Axie Infinity, developed by Sky Mavis, is an Ethereum-based NFT game where players collect, breed, and battle fantasy creatures called Axies. The game has become a poster child for the play-to-earn model, enabling users in countries like the Philippines and Venezuela to earn a living by grinding in-game activities. Players must first purchase at least three Axies from the marketplace (costing roughly $300–$500 at current prices) before they can start earning rewards. These Axies, along with AXS and SLP tokens, can be traded on decentralized exchanges like Uniswap or centralized platforms like Binance and Huobi.
Play-to-Earn or Pyramid Scheme?
The rapid price appreciation and the necessity of an upfront investment have drawn skepticism. Several Twitter users have called Axie Infinity a “Ponzi scheme” or a “pyramid scheme,” arguing that the token values are propped up solely by new entrants. Crypto commentator Holger noted, “The border to gamified Ponzi schemes will also blur.” Despite the criticism, the project’s daily active users have climbed to over 250,000, and the total value locked in the game’s Ronin sidechain has surpassed $100 million.
Supporters counter that Axie Infinity is a legitimate gaming ecosystem where users generate value through gameplay. The studio has introduced token burns and rewards adjustments to manage inflation, but whether these measures can sustain long-term growth remains to be seen. The upcoming Axie Infinity: Origins expansion and land gameplay are expected to further drive demand.
As the GameFi sector heats up, Axie Infinity’s performance could set a precedent for other blockchain games. For now, the token prices reflect a mix of genuine utility, speculation, and FOMO—a combination that has historically been volatile.