Axie Infinity continues its exponential growth and is now officially the highest-grossing NFT project ever.
Axie Infinity is exploding! There’s no doubt about that. The cute, pokemon-like NFT game has hit a record $1.1 Billion in sales, becoming the highest-grossing NFT project ever.
It is currently raking in more protocol revenue than Ethereum and Bitcoin, earning more than the next 11 top-ranking dapps (decentralized apps) combined. In the last 30 days alone, the game generated cumulative earnings totaling almost $780 million from 1.4 million individual transactions.
More than one million people play the game daily, a number that has grown exponentially in a short amount of time, considering the game counted only 108,000 daily active users in June.
About 60% of daily active players on Axie come from the Philippines, where the game saw huge growth in the last few months.
Its business model is designed on a shared play-to-earn basis, and although Twitter commentators in the US or Europe may snub in-game earnings, calling them meaningless ‘grinding,’ people in developing countries are actually earning enough revenue in the game to subsidize their Covid-19 hard-hit economies.
Rural Filipinos including tricycle drivers and other day-to-day earners of all ages have found a way to survive in the real world, by creating communities in the Metaverse.
What is Axie Infinity?
Axie Infinity is a Pokémon-like game where cute characters engage in regular monster battles, acquire abilities for combat, and even breed up to seven times before they become sterile.
Each Axie is an NFT product, much the same as accessories and other products within the space. Axies can be purchased, created, and exchanged – and to enter the game, a player needs a minimum of 3.
At the time when the game started getting popular in the Philippines, the cost of one of the playable NFTs was considerably smaller. $5 or $10 could get you started in the game.
But as demands for the NFTs and fuel costs have risen, the cost of entry has now reached higher levels and the price of entry-level Axies currently starts at around $200 to $300 each.
Rarer Axies – as well as some highly sought-after in-game items – can even cost thousands of dollars in ETH. To mitigate these entry costs and allow people to try the game before investing in it – and to create a further way to generate profits – many players are now renting out their Axies to first time players in the form of an “Axie Sponsorship,” on platforms such as the Axie Virtual University.
In an Axie Scholarship, “managers” provide the Axie, and “scholars” play the game and generate returns. Typically, managers take about 30% of the scholar’s in-game earnings. These ‘Scholarships’ are an ideal way for newer players to get started and generate enough funds to buy their own NFT creatures and eventually join the Metaverse themselves.