The value of <a href="https://coinmarketcap.com/currencies/axie-infinity/">AXS tokens</a> has plummeted by more than 90% from its all-time high of $165.37 in November 2021. AXS, Axie Infinity's governance token, is now valued at $13.86 per CoinMarketCap. The sharp decline in price comes as a surprise to players and investors who had expected the value of the token to continue increasing.
 
Since the Vietnamese gaming studio Sky Mavis released it in 2018, <a href="https://tingbits.com/game/axie-infinity">Axie Infinity</a> has gained traction as one of the most popular blockchain games in the world. What makes this game so unique is that it allows players to earn money as they play. Axie Infinity paved the way for a new era of "play-to-earn" gaming. It proved that gaming can be more than just a pastime - it can be a source of income for dedicated players. 

<h3>What is Axie Infinity?</h3>

For those who are not yet familiar with this game, Axie Infinity revolves around collecting cute creatures known as Axies. Built on the Ethereum blockchain, the game allows players to buy, battle, and breed these Axies (think <a href="https://whatoplay.com/android/pokemon-unite">Pokémon</a>, but on blockchain) all while earning real money. Axies have powers that originate from their type (bug, bird, plant, etc.) and their various body parts.
 
Axie players earn Smooth Love Potions (SLP) tokens by winning battles in the Arena and collecting daily rewards. They then later trade them for real money at an exchange. Axies can also be bred to create more powerful teams that win more battles and generate more NFTs to sell on the market. Some Axie NFTs have sold for as high as 300 ETH (almost $600,000).
 
In August 2021, <a href="https://www.theverge.com/2021/10/13/22725083/axie-infinity-sky-mavis-blockchain-economy-game-pokemon">The Verge</a> reported that 1.8 million people logged onto the game platform to play. The game had seen unprecedented player growth in response to the pandemic, as many people were left unemployed and were looking for ways to make money from home. The p2e game's popularity especially exploded in the Philippines, where 40 percent of the players were based.

<h3>What were the reasons for Axie Infinity's drop?</h3>

Though once a successful crypto project, Axie Infinity is now seeing a decline in value. The SLP token is currently worth only 1.2 cents and has fallen by 3.09% in the past day. In addition, the number of people playing the game every day went from 2.7 million to less than one million on May 9, 2022.
 
To revive the flagging token's value and decreasing user base, Sky Mavis updated Axie Infinity’s economic model by making several changes to the game early this year. In an attempt to correct the imbalance in the supply and demand of SLP, Axie’s reward token, the company changed the rules for gaining SLP. For instance, gamers stopped earning SLP through Adventure Mode. Some speculate that the new updates to the game have made gamers and investors far less interested in it.
 
The number of active players had declined even further when the Axie team reported a Ronin bridge hack last March 30, 2022. This hack resulted in a loss of around $625 million in cryptocurrency. The exploit happened on March 23 but it was not discovered until March 30. This caused instability in the game. As a result, players shifted to other games, which was a major problem for the company, as they lost a large portion of their player base.
 
In response to falling token values and a declining player base, Axie Infinity is launching a number of upcoming major changes. These updates, set to take place later in 2022, include the development of the AXS ecosystem to incorporate governance and expanded play-to-earn rewards, as well as the mainstream release of Axie Infinity for iOS and Android smartphones. This will make the game more accessible to players around the world and help boost its popularity. 
 
These updates may be just what's needed to reclaim Axie Infinity's position as the hottest play-to-earn game. Stay tuned for more information.

If you enjoyed reading this article, check out related news on Tingbits:

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<li><a href="https://tingbits.com/post/axie-ronin">Axie Infinity Relaunches Ronin Bridge</a></li>
<li><a href="https://tingbits.com/post/method-metaguild">Method MetaGuild is the First Recipient of Sky Mavis' Esports Grant</a></li>
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Struggling crypto project Axie Infinity is launching major upgrades in a bid to revive token value

AXS Token Value Drops More Than 90% From ATH

Struggling crypto project Axie Infinity is launching major upgrades in a bid to revive token value

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