Axie Infinity Price, Game Facing Major Problem: Why Are Axie Earnings Decreasing?

Should you still play "Axie Infinity?" Research studies say "Axie Infinity" is on the brink of an inflation crisis. However, developers are working on new strategies to save the game.

Since last year, many blockchain-based games with play-to-earn systems started appearing online, led by the iconic "Axie Infinity." For reference, "Axie Infinity" is a digital universe where players can breed, battle and upgrade their virtual pets called Axies.

In quick summary, research from the consultancy firm Naavik discovered that players are cashing out real money instead of spending their tokens as in-game currency. This process is slowly creating inflation issues on the "Axie Infinity" system.

Axie Infinity Price: Company Earnings are Decreasing

According to earlier reports, the "Axie Infinity" economy works around Smooth Love Potions (SLP). This is an in-game currency used to breed and trade Axies. However, SLP is also a registered cryptocurrency, so players can trade it for real money. The main issue is that more players are cashing out rather than breeding new Axies.

In an online poll, the co-founder of Sky Mavis Aleksander Larsen asked fans, "what's your favorite thing about Axie?" Results revealed that 15 percent liked the gameplay, 37 percent enjoyed the community, and 48 percent focused on the economy.

Ironically, "Axie Infinity" earnings do not even qualify for minimum wage. Data from Naavik said more than half the Axie population comes from the Philippines, where the minimum daily wage is between $7 to $40. In comparison, new players joining the "Axie Infinity" have to invest $350 to buy their first three Axies.

Business Insider emphasized that the barrier to entry is high, and the return on investment is too low. This means senior players might continue to cash out money and new players feel discouraged to join the game.

It is also worth noting that "Axie Infinity" has a feature called scholar, where players can lend their pets to others in exchange for a 60 to 70 percent cut from the earnings. Unfortunately, this system is still being exploited for monetary purposes.

At this rate, "Axie Infinity" is in a serious state where it may enter a recession.

How Can Sky Mavis Improve Axie Infinity Game?

Fortunately, game developers seem aware of the problem. They are reportedly building a larger universe for "Axie Infinity."

As a solution, developers should create economic activities that entice players to spend more in-game than cashing out. According to Naavik, some examples are:

• Adding value to land, items, and mini-games
• Encouraging the game community through events, esports tournaments, and other general engagement
• Adding an upgrade system for Axies (vertical progression)
• Adding non-transferrable Axies that are used for competitive arena and not earning potential.

Keep in mind that the situation is still progressing and there is no way to predict whether "Axie Infinity" could overcome its circumstances. Players are recommended to monitor the game development, especially in the coming weeks.