February 7, 2023

With crypto-backed games running for profit since the beginning of the year, many believe these projects are doomed to fail.

Axie Infinity is a prime example of a play-to-earn gaming venture that suffers from player apathy. After the boom of 2021, which saw the project post record heights, the year so far has been marked by a slowdown in the growth of the Axie Infinity universe.

Continuous decline in ecosystem metrics

according to Pivotal growth dataThe gaming enterprise has recorded a significant decline in many of its growth metrics this year. This can primarily be attributed to the crypto winter, which plagued the general market and the project’s failure to sustain players’ interest.

As of August 1, the platform has 260,246 daily active users. This was a far cry from an all-time high of 2,718,810 active users registered on November 15, 2021.

On May 10, after recording a 14.27% drop in active users that week, Jeffrey Zerlin, co-founder of Axie Infinity note that the gaming platform “has been here before and knows what to do”.

However, this was not the case as attempts to regain players’ interest were met with constant failure. For example, in addition to the version Axis Infiniti V2.0 On May 23, the number of active players on the network rapidly decreased by 21% in the following 14 days.

In addition to the gradual decrease in the number of active players on the platform, the amount realized in the volume of sales on the network has also significantly decreased. As of August 1, this is $74,38,174. This represents a decrease of more than 10,000% from its all-time high sales volume of $1,030,753,400. The last figure was recorded in August of last year.

Also, Axie Infinity’s landowners have been gradually declining since the beginning of the year. With only 623 landowners as of August 1, a 77% drop has been recorded since January.

AXS has seen better days

Over the past year, all network token transfers, unique senders over time, and unique receivers over time have all decreased on Axie Infinity.

A year ago, the AXS was $42.66. Trading at $18.22 at the time of writing, the gaming token has halved in the last 365 days.

Ranked 41st in terms of market capitalization at the time of writing, its market capitalization has decreased from $2.59 billion to $1.51 billion.

Source: Santiment

Interestingly, despite the aforementioned drop in price, whales holding 10,000 to 10,000,000 AXS tokens gradually increased their holdings.

At the time of publication, that number stood at 84.57 million – a 10% increase over the 76.32 million AXS tokens this class of whales held a year ago.

Source: Santiment

Moreover, the 365-day MVRV for AXS appears to have decreased significantly by -55.38%. This indicates that many investors have failed to see any profit over the past year.

Source: Santiment.

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