How Axie Infinity Has Become The Second Largest Fee Revenue Generator
03 September 2021 - 05:09AM
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Axie Infinity has been on an absolute tear lately. The play-to-earn
platform has become the face of a new integration of crypto and
gaming that holds unbelievable potential. Axie Infinity has
surpassed 1M daily active users, and is generating more revenue
than any protocol or platform with the lone exception of Ethereum.
Yes, Axie Infinity is yielding more fee revenue than major
platforms such as OpenSea, Uniswap, Bitcoin, or the Binance Smart
Chain. If you weren’t already paying attention to Axies, you
probably should be. Need to get up to speed on the basics? Check
out our report from a couple months ago on the emergence of Axies.
Axie Infinity: On Top Of The Charts A series of tweets from
Coinbase Ventures’ Connor Dempsey lays out the short and sweet of
the story quite well. As Dempsey aptly notes, every Axie
transaction collects a priced-in fee – either in $SLP or $AXS. At
the time of writing, in the past 24 hours, Axies have generated
over $17MM in sales volume, leading the pack when it comes to NFTs.
The next closest NFT project on the sales volume chart is Bored Ape
Yacht Club, which is just under $9MM. You’re reading that right,
Axies have nearly doubled the next closest comparable NFT project
today. Axies, of course, also lead the 30-day and all-time charts
for NFT sales volume, as the platform has eclipsed $1.7B in
transactions and approached 1.5M owners. If you look at blockchain
fee revenue over the long-term, Axies become even more impressive.
According to Token Terminal, any long-term time horizon from the
90-day chart and longer reflects a fee generation from Axies that
surpasses Ethereum. As Dempsey highlights in his tweet thread, the
treasury pool from Axie fees has ballooned to nearly $600MM. Axie
Infinity's governance token, AXS, has been explosive this year as
the platform crosses over 1MM active daily users. | Source: AXS-USD
on TradingView.com Related Reading | New To Bitcoin? Learn To Trade
Crypto With The NewsBTC Trading Course The Sky Is… Infinity?
Dempsey’s tweet thread leads to a new Coinbase blog post this week
centered around Axie Infinity, associated gaming guild Yield Guild
Games, and more broadly, the play-to-earn model. The demand flowing
into Axie Infinity has led to Axies costing an average of around
$300 this month, with a minimum of 3 Axies required in order to
play the game. Revenues in August nearly doubled from July. How did
this happen? It started with an emergence last year in the
Philippines. It’s grown so much in the country that government
finance officials have reiterated that profits from play-to-earn
titles should be reported as income tax. Other developing and
emerging countries, particularly ones hit hard from the COVID-19
pandemic (and where local currencies may have weakened), have found
a living wage modeled through Axie Infinity as well. The largest
criticism around Axie comes to sustainability; will consistently
rising costs to enter the market lead to unsurmountable barriers to
entry? In enters Yield Guild Games, who lend out Axies for a small
return. Yield Guild Games even partnered with exchange FTX to
sponsor over 100 players in developing countries. The surrounding
economy to support Axie Infinity is coming to life before our eyes.
Axie Infinity is paving the way for the play-to-earn model, and
impacting individuals lives in a very major way, at a very
significant scale. Related Reading | Only In Crypto: A Croissant
Breaks Down How Gamestop & NFTs Will Boost Ethereum Featured
image from AxieInfinity.com, Charts from TradingView.com
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