The Decentralized Finance (DeFi) ecosystem has been growing rapidly this year, with Ethereum and Cardano announcing new innovations. By July 2021, the Ethereum ecosystem alone had more than 3 million users – and this was before Non-Fungible Tokens (NFTs) got mainstream attention. Another major part of the growth that DeFi is experiencing is its Decentralized Application (DApp) sector.
There are thousands of DApps out there, but only some of them are worth a try. Some DApps have created their own ecosystem using native cryptocurrencies, some have created a metaverse using NFTs, while some have done both. To better portray the size of this industry, we must note that there are numerous DApps worth billions; and most of them have been around for only 1-2 years.
In today’s article, we will talk about one of the biggest, if not the biggest, DApp out there – and that is Axie Infinity. This DApp introduced an innovative concept which allows you to generate crypto assets such as NFTs while playing on their platform. Furthermore, we will touch upon their native token, Axie Infinity Shards (AXS), and present our price prediction for it.
Axie Infinity (AXS) Fundamental Analysis
First off, Axie Infinity was created in early 2018 by Sky Mavis, a video game developer company that was founded by Trung Nguyen, Alexander Larson, and Jeffrey Zirlin. All three of these have solid backgrounds, and when they are combined, they form the perfect team for building a game like Axie Infinity. Nguyen was the co-founder of a multi-million dollar company when he was just 19 years old; Larson is a competitive Dota 2 player and has founded numerous gaming communities in Norway; last but not least, Zirlin has a history degree from one of the Ivy League Universities – Yale.
Axie Infinity was built on top of the Ethereum blockchain, however, earlier this year, they announced that they have migrated to an Ethereum-Compatible sidechain known as Ronin. This sidechain was created by the creators of Axie Infinity for the sole purpose of hosting their game. As of right now, Ronin is not a decentralized blockchain, meaning that Sky Mavis has control over it.
Tokenomics
The Axie Infinity ecosystem is made up of two native tokens: AXS and SLP.
The use cases for AXS include governance, staking, and payment. So, you can use AXS for governing purposes in the Axie Infinity NFT game. Moreover, you can stake your AXS to help with liquidity and get rewarded for it. Lastly, you can use your AXS to make all sorts of payments on the Axie Infinity virtual world.
The AXS has a maximum supply of around 270 million tokens while only 60.9 million Axie Infinity Shards are in circulation. Now, let us break down the distribution of these tokens. Around 50% of the maximum supply will either be distributed as in-game rewards or through staking; 8% will be allocated to community growth and development; 20% will be given to Sky Mavis and the team of Axie Infinity; 7% to Axie Infinity advisors; and around 15% to public and private sale.
At the time of writing, Axie Infinity Shard (AXS) has a price of $63.27 with a trading volume of over $279 million. They have a market capitalization of $3.8 billion, giving them a market rank of #39 on CoinMarketCap.
Now, let us move on to the Smooth Love Potion (SLP) token. This token can be either won by successfully beating enemies in-game or bought in various exchanges such as Binance, FTX, Gate.io, CoinEx, and many others. Moreover, SLP tokens can also be traded for other ERC-20 tokens on Ethereum DEXs such as Uniswap. One of the main use cases for SLP is to breed Axies with one another. Unlike AXS, SLP has an uncapped supply, meaning that an infinite number of SLP tokens can be issued.
At the time of writing, SLP has a trading value of $0.067 and a trading volume of $126 million. Their market capitalization is $144 million, putting them in 295th place on CoinMarketCap.
What are Axies?
During Summer 2021, Axie Infinity attracted more than 250,000 users each day, making it one of the biggest DApps out there. This game is considered to be a Play-to-Earn game, the very first of its kind. Axie Infinity is blockchain-powered and is built around millions of Axie NFTs. These NFTs are fantasy creatures that can be bred, raised, and used to battle with other Axies. Since Axie Infinity started its journey on the Ethereum blockchain, Axies are ERC-721 tokens.
As mentioned before, there are millions of Axies on the Axie Infinity virtual world, however, not all of them are available for sale. Axie Infinity has its own marketplace for Axies and, according to their website, the most expensive Axie ever sold in late 2020 for 300 ETH. Considering that the price of Ethereum has been jumping between $2900-$3400 these past few weeks, that Axie would be worth around $1 million today.
Earlier this month, the Axie NFT collection became the most valuable NFT collection, surpassing CryptoPunks. They clocked more than $1 billion in trading volume within their own ecosystem.
Similar to Pokemon, Axies are divided into 9 categories: Aquatic, Beast, Bird, Bug, Dawn, Dusk, Mech, Plant, and Reptile. Each category has an advantage over another when in battle.
Each Axie has at least 6 over 500 possible body parts. Furthermore, each of these body parts is made up of three genes: Dominant (D), Recessive (R1), and Minor Recessive (R2). This is important when you are breeding two Axies since the offspring will get some of his/her parent’s genes. The chances that the offspring will get the D, R1, or R2 gene from either parent are 37.5%, 9.37%, and 3.12% respectively.
To keep the Axie world from over-population, you can only breed an Axie seven times. Moreover, you must pay more each time you breed your Axie.
How to Play Axie Infinity?
To begin playing the game, you must first create a team of three Axies. This means that you cannot play Axie Infinity without owning three Axies. Axies tend to be quite expensive nowadays and not everyone has the money to start playing Axie Infinity.
Therefore, the developers came up with a solution called Scholarships. Through this concept, Axie managers can lend out their Axies to people in return for a cut of the earnings that those people make. This is a win-win solution since the Axie managers that lend out their Axies get passive income while the ones who are using those Axies earn tokens to buy their own Axies.
There are two modes in Axie Infinity: Adventure & PVP. The Adventure game mode is played against non-player characters, while PvP is a player-versus-player mode. Each time you beat an enemy, be that a player or a non-player, you earn a small amount of SLP.
The Roadmap
Axie Infinity has offered us a lot until today, nevertheless, they don’t seem to plan on stopping soon. According to their roadmap, the next big thing coming to Axie Infinity is its virtual world known as Lunacia.
Lunacia consists of around 90,000 plots of land – all of which are customizable and tokenized. An individual plot is called Terra. As of right now, there are around 9 types of Terra: Luna’s Land, Genesis Land, Mystic Land, Arctic Land, Forest Land, Savanah Land, while the three other types of land are still unknown.
The first-ever land sale on Lunacia occurred during the month of January 2019 while the latest land sale happened during the early days of February 2021.
This virtual world is believed to have NPCs, rivers, dungeons, and even laws implemented on it – clearly having the upper hand on other virtual worlds such as Decentraland.
Axie Infinity (AXS) Price Analysis
According to CoinMarketCap, AXS entered the market holding a trading value of about $0.12 and having a trading volume of $16 million. From the beginning, AXS has quite some price movements, with the majority of these movements being positive. It took AXS only two weeks to surpass the $0.50 milestone and, by the end of January 2021, AXS had also surpassed the $1 mark. The crypto did not stop there though, continuing its uptrend even further. By April, AXS had set a new all-time high of $8.2, experiencing a 6783% increase in a span of only a few months.
As time passed by, the price of Axie Infinity Shard fell, hitting $3.48 by mid-June. Not shortly after, however, its price skyrocketed, setting yet another new all-time high by reaching a trading value of $26.93… and when everyone thought AXS had reached its peak, it shot up again. By the end of July, AXS had reached the price of $50.
Rank: 88
On the 4th of September, AXS set its current all-time high after hitting a high of $94.62. This leaves early investors with a 78,000% investment return on AXS.
Axie Infinity (AXS) Market Price Prediction
While Axie Infinity is one of the crypto projects with the most potential, there are people who doubt the success of this project. Numerous crypto influencers and prediction websites have covered Axie Infinity, and while most of them have a positive opinion on its future, some tend to hesitate.
CoinBureau
CoinBureau is one of the biggest cryptocurrency Youtubers that has talked about Axie Infinity in his videos. In one of his latest videos regarding Axie Infinity, Coin Bureau elaborates on the background of this crypto project. Moreover, he looks at the past prices of AXS and SLP. To wrap it up, CoinBureau expresses his bullish expectations for AXS by claiming that Axie Infinity might be one of the best crypto projects to ever exist.
CoinQuora
One website that is focused on providing people with information regarding a specific cryptocurrency is CoinQuora. On one of their latest articles regarding Axie Infinity Shard, their forecast shows quite an uptrend for the token. According to them, AXS might end this year with a price above its current all-time high of $83.26. Furthermore, they believe that AXS might trade at $500 per token by 2024 and at $720 by 2025 if all goes as planned.
WalletInvestor
According to Wallet Investor, one of the biggest cryptocurrency prediction websites, AXS is likely to grow in price. They claim that the token might be trading at a price between $84-$102 by the end of the year. As time passes, AXS is expected to increase in price, potentially reaching the price of $220 by mid-2023. When it comes to long-term predictions, Wallet Investor claims that AXS may be trading at $427-$540 exactly five years from now.
Crypto Academy Axie Infinity (AXS) Price Prediction
As for us at CryptoAcademy, we believe in the vision of Axie Infinity. As for the long run, we think that Axie Infinity might be way bigger than it is today.
Axie Infinity (AXS) Price Prediction 2021
After analyzing the market and the events surrounding this crypto project, we came up with something we believe to be an accurate forecast. The AXS token has seen an enormous increase this year and we believe it is not going to stop here. According to our prediction, AXS might experience some small price movements throughout the upcoming weeks. However, as the end of the year commences, AXS is likely to increase once more, possibly hitting the price of $93 – setting a new all-time high.
Related: Axie Infinity Price Prediction September 2021: AXS Hits Resistance At $71.4
Axie Infinity (AXS) Price Prediction 2022
For the year 2022, our data shows that AXS is likely to experience another increase, yet this one is believed to be slower and smaller. By mid-2022, the price of AXS may plummet. Nevertheless, only some weeks after, AXS is likely to recover and continue its uptrend. By the end of the year, we believe that AXS might reach a price of $155 – considering their supply hasn’t reached its maximum yet.
Axie Infinity (AXS) Price Prediction 2023
We believe that Axie Infinity might have a breezy 2023. As this year commences, the price movements of AXS may decrease, getting smaller and smaller each week. Our prediction shows that Axie Infinity Shard might experience +-15% price changes per month on average. If we are correct, AXS is likely to end the year with a trading value anywhere between $190-$225.
Axie Infinity (AXS) Price Prediction 2024
The year 2024 is expected to be big for the whole cryptocurrency market, taking into consideration that it is the year when the upcoming Bitcoin halving will happen. During this year, we might get closer to reaching the max supply of AXS tokens, which is expected to positively affect the price of the token. As we move towards the end of 2024, the price of AXS might get closer to reaching $350, or even $400 if the market gets super bullish.
Axie Infinity (AXS) Price Prediction 2025
The year 2025 might be one of the biggest for the whole crypto industry, not just for Axie Infinity. Considering the effects that a Bitcoin halving has on the market, we expect AXS to rise even more. Entering the year with a price somewhere between $300-$400, we believe that AXS may surpass the $500 by far and even reach $580 by the end of the year.
Axie Infinity (AXS) Price Prediction 2026
During this time, we believe that the project will be 100% completed; excluding unannounced updates. That being said, the project might reach its full potential during this year, leaving early investors with even more returns. Exactly five years from today, we believe that AXS might be trading at $780 per token. The token might experience somewhat of a drawback after reaching that price, leaving it with a potential price of $750 by the end of 2026.
How To Buy Axie Infinity (AXS)?
Step 1: Create a Cryptocurrency Exchange Account
Buying AXS is quite easy and can be done in two ways: by using a cryptocurrency exchange or by undergoing a Peer-to-Peer transaction.
- If you want to buy AXS from someone who already owns AXS tokens, the first thing you have to do is get into contact with the seller. After finding an AXS holder who is interested in selling his tokens. Open a wallet that supports AXS tokens and use your AXS address as the destination of the tokens.
- When using a cryptocurrency exchange, you must first find an exchange that fits your purpose and has AXS listed on it. After doing so, you have to create an account on that exchange and verify it. Verifying your account most often requires you to fill out a Know-Your-Customer (KYC) form.
Read More: Top 9 Cryptocurrency Exchanges in 2021
Step 2: Deposit Funds on Your Account
Now that you have verified your account, we can move to the next step, and that is funding your account. There are numerous payment methods that depend on the exchange you are using. Nevertheless, most exchanges offer the option to fund your account using Paypal, a debit/credit card, or a bank transfer.
We must note that there are exchanges that allow people to directly buy cryptocurrencies using their debit/credit cards. This means that you don’t need to first fund your account then use the deposited amount of funds to buy crypto since you can do it directly.
Step 3: Buy Axie Infinity Shard
The last step is the easiest. After you are done funding your account, simply locate an AXS market. Some examples would be AXS/USDT, AXS/BTC, AXS/ETH, AXS/BUSD, and AXS/USDC.
Moreover, there are exchanges that have AXS market pairs with fiat currency. This means that you can buy AXS using fiat. Some examples would be AXS/EUR and AXS/USD.
Frequently Asked Questions (FAQ)
Is Axie Infinity (AXS) a good investment?
Yes. According to the research done by our team, investing in Axie Infinity (AXS) might turn beneficial for you because of many reasons. Considering the current NFT craze and the events around the Axie Infinity game, we believe that AXS might continue to grow, despite the FUD or the overall market trends.
Will Axie Infinity (AXS) surpass $100 in 2021?
Probably. Axie Infinity has grown enormously this year, entering the year with a price below $1 and setting an all-time high of $92 before the end of the year. We do believe that AXS is likely to break its all-time high once again and surpass the $100 by the end of the year.
Can I play Axie Infinity without owning an Axie?
No. As we stated above, to participate in any of the game modes in Axie Infinity, you have to either buy an Axie or lend one. Buying an Axie is pretty easy and can be done through their official Axie marketplace. Whoever is interested can connect their wallet and use ETH to buy any of the listed Axies.
Also Read: Avalanche (AVAX) Price Prediction 2021 and Beyond – Will It Grow Even More?
Takeaways
- Decentralized Finance (DeFi) is looking to revolutionize the whole world, making everything decentralized and digital.
- Axie Infinity is one of the biggest DApps out there, with more than 250,000 daily users.
- This DApp is considered to be the most successful Play-to-Earn DApp on the whole DeFi ecosystem.
- To play the game, you must own at least 3 Axies – cute, adorable fantastic characters distributed as Non-Fungible Tokens (NFTs)
- There are 9 categories of Axies: Aquatic, Beast, Bird, Bug, Dawn, Dusk, Mech, Plant, and Reptile.
- The most expensive Axie was sold for 300 ETH.
- The price of AXS is believed to increase during the upcoming years, potentially leaving investors with huge profits.