“Gotta catch ‘em all!”
Sounds familiar? This catchphrase from Pokémon is a huge part of many people’s childhoods. The concept behind this phrase is simple: collect, breed, battle, and trade adorable creatures to make progress and beat the game.
That’s what Axie Infinity is all about: Collecting cute critters called Axies and building your team for battle. But with Axie Infinity, you are also able to earn crypto and non-fungible tokens (NFTs) while playing.
This article will walk you through what Axie Infinity is and how it uses blockchain technology to create a decentralized play-to-earn (P2E) gaming experience.
What is Axie Infinity?
Developed by Vietnam-based Sky Mavis, Axie Infinity aims to create a digital nation where you collect and raise cute creatures called Axies, which are built with different traits and abilities.
Axie Infinity is built on the Ethereum blockchain, where all game assets are tokenized and player-owned. This means that Axie Infinity’s assets have real-world value, giving you the opportunity to earn tangible rewards from playing the game.
The stat screen of a typical Axie.
Image credit: Axie Infinity Blog
Axies run the show in Axie Infinity. Beyond just being cute little pixels on a screen, Axies are NFTs representing unique digital pets that can be bred, battled, and traded on a marketplace. Each Axie comes with a unique set of body parts that directly influence its appearance, stats, and skills.
In general, there are 6 key body parts that can be combined to create billions of genetic variations. These include:
Depending on their origin, class, and mystic parts, some Axies are rarer and more valuable than others. According to the Axie Marketplace, there are a total of 11.8 billion Axies in existence (as of 17 Oct 2023), and these are owned by 1.3 million users.
Axie Infinity has its own token: Axie Infinity Shards (AXS). AXS is the governance token used to vote on proposals, stake for rewards, and serve as the currency to buy land plots, items, and other in-game assets.
Another important token in the game is the Smooth Love Potion (SLP). SLP is used to breed new Axies and also functions as a regular crypto that can be traded on the marketplace or exchanged for other crypto. You can play through Axie Infinity’s various game modes, such as Adventure and Arena, to earn SLP.
How Do You Play Axie Infinity?
A typical Axie team comprises three Axies.
Image credit: Axie Infinity Blog
To start playing Axie Infinity, you’ll need to assemble a team of at least three Axies. You can buy them off the Axie Marketplace with ether (ETH) or other cryptocurrencies, or you can breed them with SLP.
You also need to have two digital wallets before you can start playing. The first wallet must be able to support ETH and NFTs, such as MetaMask or Trust. The second wallet you must have is Ronin, a dedicated sidechain wallet that facilitates all transactions in the Axie Infinity ecosystem.
When your dream team is ready, you can begin exploring Axie Infinity’s various modes. Below is an overview of each mode:
Land expanded Axie Infinity with greater customizability and ownership.
Image credit: Axie Infinity Whitepaper[10]
In December 2022, Axie Infinity launched a new feature called Land. In this update, Lunacia, the Axie homeland, is divided into 90,601 tokenized plots of land that you can buy to house your Axies.
Land plots are NFTs that you can buy with AXS or ETH, and like Axies, they vary in size and rarity. These plots offer you a greater depth of customizability, as you can build your very own Axie kingdom with buildings, decorations, and resources. On occasion, you may even find AXS tokens on your land plots, and you can also rent out your land and create mini-games for other players to enjoy.
How Can You Earn From Axie Infinity?
As one of the pioneers of the play-to-earn (P2E) model, Axie Infinity lets you earn real money by playing the game.
There are several key methods to earn from Axie Infinity, including:
Selling or Trading Axies on the Marketplace
Angel, the Axie that was sold for 300 ETH in March 2021.
Image credit: NonFungible
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Some Axies can fetch high prices depending on their rarity, aesthetics, and utility. For example, in March 2021, an Axie named Angel sold for 300 ETH (around $500,000 at that time).
Breeding New Axies and Selling Them
Breeding requires SLP and AXS as fees. It follows certain rules and limits to prevent overpopulation and inflation. By breeding Axies strategically, you can create valuable offspring to generate profit.
Earning SLP By Playing Adventure and Arena
SLP is needed for breeding new Axies, but it can also be sold or exchanged for other crypto on various platforms. Play through Axie Infinity’s basic modes to obtain SLP, and then proceed to trade them like you would with other regular cryptos.
Earning AXS By Playing Arena or Staking Tokens
AXS is the governance token of the game and has utility for breeding and paying fees within the game. AXS can be sold or exchanged for other cryptocurrencies on various platforms.
Owning Land Plots and Generating Passive Income
Land plots are scarce and expensive, but they can also serve as a valuable source of revenue for their owners. As a landowner, you can rent out your land, create mini-games, or harvest resources from your land in exchange for rewards.
Why Should You Invest in Axie Infinity?
More than just a whimsical game, Axie Infinity empowers you to own your digital assets and participate in an economy that is entirely owned by its players.
Since its inception, Axie Infinity has grown rapidly in popularity and adoption, especially in regions where traditional income sources are scarce or unstable.
The game’s tokens, AXS and SLP, have also seen a significant increase in value and demand over time. As of October 2023, AXS is worth $4.29 with a market capitalization of $606.6 million, while SLP is worth $0.001368 and has a market capitalization of $56.6 million.
What Limitations Does Axie Infinity Have?
Although Axie Infinity has many advantages and opportunities for players, it also has some limitations that need to be considered.
Some of the main limitations of Axie Infinity are:
Specific Earning Limitations
Although completing in-game quests and activities nets you AXS and/or SLP, there’s a hard daily limit on how much SLP you can earn, depending on your MMR (matchmaking rating) and rank.
Furthermore, breeding new Axies requires SLP and AXS as fees and also follows certain rules and limits to prevent overpopulation and inflation.
It is necessary to balance your spending and earning of tokens, as well as your breeding and battling strategies.
Issues with NFTs and Blockchain Technology
Numerous observers have expressed concerns over the sudden popularity of selling and trading non-fungible tokens.
Some of the issues include the environmental impact of blockchain transactions, the legal and ethical implications of NFT ownership and rights, the security and scalability of NFT platforms, and the volatility and unpredictability of NFT markets.
These issues may affect the value and sustainability of Axie Infinity and its tokens in the long run.
High Starting Cost
Despite being a play-to-earn game, Axie Infinity requires a high initial investment to start playing. As mentioned, you need at least three Axies to start playing the game, but this can cost you at least $1,000 or more, depending on market conditions.
Significant Barriers to Entry
To begin Axie Infinity, you need to set up two wallets: one to support ETH and NFTs, and Ronin. These requirements can pose barriers to entry for players who do not have enough funds or technical knowledge.
Technical Issues and Hacks
As the game is still under active development, it is by no means perfect and is prone to technical issues, bugs, or hacks that could affect its performance and security.
For example, in June 2022, the game suffered a crash in its secondary token SLP,[16] which dropped from $0.16 to $0.01 in a matter of minutes. This crash was caused by a hacker who found and exploited a vulnerability in the Ronin network to mint billions of SLP.
Although the hacker was eventually caught and the surplus SLP was burned, the incident caused panic and distrust among some players and investors.
Battle, Collect, and Earn With Axie Infinity Today
Axie Infinity is a novel way to experience crypto and blockchain, letting you indulge in your love of video games and earn rewards at the same time.
You can get started with Bake’s Fun & Games bundle, which ties Axie Infinity’s native token AXS with The Sandbox (SAND). Together, these two tokens represent the possibility of leveraging the power of blockchain to create P2E models for video games.
By investing in this bundle, you’ll establish your support for the vision of blockchain gaming.
Ready to begin your Axie Infinity journey? Head over to Bake now to create your account and buy your first AXS!
DISCLAIMER: Please note that the information on this blog and in any articles posted on this blog is for general information only and should not be relied upon as financial advice. Cake Pte. Ltd., Bake, UAB, and its affiliates (the “Cake Group”) are not licensed financial advisers. You may wish to approach your own independent financial advisor before making any decision to buy, sell, or hold any product and/or digital assets mentioned in this blog.
Any views, opinions, references, assertions of fact, and/or other statements are not necessarily the views held by the Cake Group. The Cake Group disclaims any liability whatsoever that may arise out of or in connection with such statements. Always do your own research before investing in any financial assets, and consult a qualified financial advisor if necessary.
