October 7, 2022

With crypto-backed for-profit gaming games in steady decline since the start of the year, many believe these projects are doomed to fail.

A prime example of a for-profit game that suffers from player apathy is Axie Infinity. After the explosion of 2021, which saw the project hit record highs, the year so far has been characterized by a decline in the development of the world of Axie Infinity.

Prolonged decline in ecosystem metrics

According Axie Growth Data, the gaming project has seen significant declines in many growth metrics this year. This can primarily be attributed to the crypto-winter that is plaguing the general market and the project’s failure to maintain player interest.

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

On May 10, having recorded a 14.27% decline in active users that week, Axie Infinity co-founder Jeffrey Zirlin he noticed that the gaming platform had “been here before and knew what to do.”

This, however, did not happen, as attempts to restore the interest of the players were met with continuous failure. For example, after its release Axie Infinity V2 On May 23, active players on the network quickly dropped by 21% in the 14 days that followed.

In addition to the gradual decrease of active players on the platform, the amount realized in sales volume on the network also decreased significantly. As of August 1, that was $7,438,174. This represented a decrease of over 10,000% from the all-time high sales volume of $1,030,753,400. The latest figure was recorded in August last year.

Also, the landowners in Axie Infinity have gradually decreased since the beginning of the year. With only 623 landowners as of August 1, there has been a 77% decrease since January.

AXS has seen better days

Over the past year, network token transfers, unique senders per hour, and unique receivers per hour on Axie Infinity have decreased.

A year ago, AXS was valued at $42.66. Trading at $18.22 at press time, the gaming token has halved over the past 365 days.

Ranked 41st by market capitalization at the time of writing, its market capitalization fell from $2.59 billion to $1.51 billion.

Source: Santiment

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

At the time of publication, this stood at 84.57 million – a 10% increase from the 76.32 million AXS tokens held by this category of whales a year ago.

Source: Santiment

Furthermore, AXS’s 365-day MVRV was seen significantly down by -55.38%. This suggests that many investors failed to see any profit in the past year.

Source: Santiment.

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