It seems that the dream of revolutionizing the games industry with a new model in which players are paid for their interaction on the platform, the famous play-to-earn (P2E), is fading.
The main P2E-style game on the market, Axie Infinity, responsible for the largest volume of transactions, has been witnessing, day by day, a drop in its number of players.
Players abandon Axie Infinity
Since revamping the game’s rewards, making it harder to monetize activities, Axie has been suffering the consequences and losing players.
Consequently, this has been reflected in the price of AXS. After all, the token that drives the game has dropped by nearly 30% in the last seven days. By way of comparison, last November AXS hit an all-time high of $165.37. Therefore, today’s prices indicate a drop of more than 81%.
Although Axie Infinity was one of the most profitable cryptocurrency projects of 2021, it has had some rough times.
The reasons for Axie’s downfall are numerous. But players and experts attribute the game’s tokenomics as the main flaw, which, at the moment, is not good for both experienced players and novices.
“This has caused a veritable hemorrhage in Axie Infinity, draining its users at an alarming rate,” said Liam J. Kelly.
According to data extracted from DappRadar, the number of users on the platform has peaked at approximately 63,000. However, today, the number of active users is no more than 12,200.
“Axie’s tokenomics is all flawed. Axies can be created on limits, and before the February update, there were a lot more SLPs being created than destroyed. Without sustained growth to match that arrangement, it’s hard to see how the game could sustain itself.”
Also, recently the Ronin sidechain, the game’s blockchain, was hacked. In all, the criminals stole about $622 million.