Is It Worth Investing In Axie Infinity?

Last Updated February 1st 2022

15 Min Read

Blockchain gaming is a quickly growing industry. New games are anticipated as often as new dApps, with several independent developers creating their own projects each month.

In fact, according to a new study, 72% of game developers are willing to include NFTs and blockchain elements into their games.

A new niche has been emerging within this space: blockchain collectable games. These allow players to purchase, breed and battle unique digital assets on the blockchain.

One of the most successful blockchain collectable games is Axie Infinity, created by Sky Mavis, a Vietnamese-based gaming studio.

Axie Infinity allows players to breed, battle, and trade unique digital creatures called Axies on the Ethereum blockchain. An Axie’s genetic material is stored as an NFT (Non-Fungible Token), meaning that no two Axies are alike.

This new game has already seen impressive success, with over $1 million in transactions on the game’s blockchain in just 3 months.

In this guide, we will take a look at what Axie Infinity is, how it works and whether or not it is worth investing in.

Contents:

What Is Axie Infinity
How Does Axie Infinity Works
Axie Infinity Price History
Axie Infinity Price Predictions For 2022 And 2023
How To Invest In Axie Infinity
Is Axie Infinity A Good Investment?
Conclusion: So, Should I Buy AXS Tokens?

What Is Axie Infinity

Axie Infinity is a relatively new project built on top of the Ethereum network that allows players to battle, breed and trade unique creatures called Axies.

It is a turn-based card game that uses ERC 721 NFTs to represent players’ Axie creatures. Axies can be purchased from the Marketplace or bred using Small Love Potions (SLP), which are earned by playing either Adventure or Arena modes.

Axies can also be purchased on the Marketplace with ETH. Each Axie is unique and has its own set of skills that it acquires as it matures. It features a campaign mode, where players can compete against each other in turn-based battles, and an arena mode, where players fight computer-controlled monsters to strengthen their pets.

Axie Infinity is still in its early development stages, but it has already garnered a large following within the blockchain gaming community. The team behind Axie Infinity is very active and constantly working to improve the game. The developers have recently partnered with Animoca Brands, a leading mobile games publisher, which should help to increase the visibility and popularity of the game.

How Does Axie Infinity Works

A large focus of the Axie Infinity is breeding and fighting.

Players start with a small family of Axies at the beginning of the game. They can feed their pets to grow stronger and breed with other Axies that they capture or purchase from the marketplace.

Once they’ve bred an Axie, they can enter it into the arena to compete against other players’ Axies in turn-based battles. The winners of these battles receive experience points and shards, which can be used to purchase new items in the game’s Marketplace.

Axies can also be levelled up by training them in the game’s Training Grounds. This allows players to strengthen their Axies and gain new skills that can be used in battle.

The effectiveness of Axies is usually based on four important factors:

Health: The amount of damage an Axie can take before dying
Speed: How fast an Axie can attack
Skill: The ability of an Axie to play multiple cans simultaneously
Morale: A boost to an Axie's ability to knock out an opponent

Ability cards are central to the Axie Infinity gameplay. The ability cards are unique to each Axie and determine the strength of their attacks. There are also land cards, which give Axies a place to live and defend in the game.

Players can also purchase plots of land where they can breed and train their Axies. These plots are known as Lunacias. Developers can use the Lunacia software development kit to create their own unique games.

Axies can also produce offspring, which inherit some of their parents’ skills and stats. This allows players to create powerful new Axies by breeding two of their favourite creatures together.

If you don't want to breed, you can buy Axies on the Axie Infinity marketplace. Players can buy and sell Axies for ETH, and the prices of creatures usually reflect their rarity and stats.

Check Out: Will Axie Infinity Make Me Rich In 10 Years?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Axie Infinity Price History

Axie Infinity was founded around 2018. So, while it has not been in the market for long, it has an interesting price history. According to CoinMarketCap, the coin began trading in November 2020, with the earliest known price being $0.15.

Since it was launched until late February 2021, AXS remained relatively low and mostly traded below $1.

At the beginning of March 2021, the coin began growing and crossed $1 for the first time. By around mid-March, Axie Infinity was trading above $5.

You will remember that early 2021 was an interesting year for cryptocurrencies because of the market-wide bull run that ended around May. Unlike most coins, AXS didn’t exactly take advantage of that market condition.

So while most coins were enjoying the bull market and setting new milestones, Axie Infinity’s growth remained leisurely and only went just above $10 per coin towards the end of April 2021.

Now, as we mentioned, the 2021 market-wide bull run ended in late May and early June for some coins. Around this time, most coins crashed and have never been able to reach the all-time highs they attained.

Although AXS’s price didn’t rise as parabolically as others, it was also slightly affected by the crash and by the end of June, it had gone down to about $3.4 per coin.

But then something interesting happened.

Axie Infinity’s own bull run began just as most of the coins were crumbling under a bear market. The coin began rising fast, and by mid-July 2021, it was trading at close to $24 and then towards the end of June, it crossed $46 per coin.

Although the growth was not exactly linear, it kept fluctuating in upward momentum. There were sudden price jumps with just as many dips.

Following this trajectory, AXS crossed $80 in early September, but towards the end of that month, it had gone down to just above $50. Although this was a big drop, it was also the beginning of Axie Infinity’s biggest price jump.

Between September 21st and October 3rd, 2021, AXS rose from $50.55 to as high as $138.32. That is a 173.63% gain in just two weeks. Naturally, most price experts expected that the coin would drop just as hard following the big jump. But AXS had other plans.

It kept fluctuating but never went below $100. In fact, it was only trying to rise further.

On November 6th, 2021, AXS gained its current all-time high price of $165.37, according to CoinMarketCap. After this, the coin could not sustain its fast-paced growth and began dropping.

Around mid-November, AXS had dropped to just above $123, and in early December, it had gone to as low as $105 per coin.

Axie Infinity is currently trading at $53.15 per coin with a market cap of around $3.2 billion and a fully diluted market cap of $14 billion. This makes it the 40th biggest cryptocurrency by market cap and one of the fastest-growing blockchain-based game platforms.

Axie Infinity Price Predictions For 2022 And 2023

Although Axie Infinity is down 38.83% from its ATH, it still shows a lot of promise and might record interesting milestones in 2022 and 2023. Most of the price predictions we have seen lean on the bullish side, with only a few being conservative.

For instance, Gov.capital predicts that in the next one year, AXS might trade at as high as $405 per coin and close to $4,607.49 per coin in five years. The site believes that AXS will at around $83.45 in the beginning of 2022 and might cross its current ATH in early June.

That is quite impressive growth that could mean massive gains for investors if it were to come true. In early May 2022, Gov.capital predicts that Axie Infinity will be trading at as high as $134.16, and by mid-May, it would have crossed $152.14 per coin.

The uptrend will continue for the most part of the year, with very few drops in between.

By June 2022, AXS might trade at above $170 and then kick off July at around $235. The $300 per coin milestone might soon follow towards the end of September.

The coin might then start October at close to $400, and by early November, it might be trading at as high as $434.81. The upward momentum will continue with only a few drops on the way, and by the end of the year, AXS will be worth around $405.31 per coin.

This means that the $500 level milestone might quickly come in March 2023.

So, generally, Gov.capital is just as optimistic in 2023 and predicts that Axie Infinity might cross the coveted $1,000 price mark by November. That will be around $1,025.38 by the end of December 2023.

Gov.capital is not the only price analyst that is optimistic about the future of Axie Infinity and its potential in the market. The Hungary-based Wallet Investor also predicts a speedy growth that will see AXS cross its current ATH in mid-October 2022.

By the end of 2022, Wallet Investor predicts that AXS might be worth about $191.36 per coin, which is not too far from Gov.capital’s prediction.

2023 will be just as interesting, according to Wallet Investor. The coin might start the year at around $192.32, and by Christmas 2023, it will be trading at as high as $310.32. It will then close the year at $308.05.

As you can see, these predictions are quite positive, meaning that Axie Infinity might be one of the most valuable cryptocurrencies in a few years.

Of course, there are a few sceptics who believe that AXS might not record any plausible growth in 2022 and 2023. For instance, Priceprediction.net predicts that AXS will end 2022 at around $162.5 and 2023 at $233.82.

This is quite low compared to the other two predictions. All in all, you should only take these predictions with a grain of salt and never use them to make important investment decisions. Do your own research before deciding if Axie Infinity is the right fit for your portfolio.

Don't Miss: Axie Infinity Price Predictions

How To Invest In Axie Infinity

Axie Infinity is still in its early development stages, so there is no fixed way to invest in the game. However, there are a few options available for those interested in getting involved.

These include:

Harvesting Smooth Love Potions (SLP)
Investing in Lunacia land plots
Breeding and selling Axies
Staking your Axie Infinity Shards

However, if you want to invest in the primary AXS token, you can do so by:

Buying and holding
Trading

Let's start with the last two:

1. Buying and Selling AXS

Axie Infinity Shards (AXS) is the governance token of Axie Infinity. It is used to power the game’s economy and complete transactions.

One of the most common ways you can invest in AXS is by buying and holding. This means you buy AXS and then store them in a wallet until you decide to sell when the price is much higher.

There are a number of wallets you can use that support AXS.

They include:

Ledger Nanos S
Trezor One
Atomic Wallet
Trust Wallet
MyEtherWallet

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. Trading AXS

The second way to invest in AXS is by trading them. This means that you buy AXS on the market and then sell them for a higher price.

However, trading is more than just buying low and selling high. It requires you to do your own research in order to find the best time to buy AXS when they are trading at a lower value.

Once you decide that it is the right time to buy, you can then sell your tokens at a later date for a profit.

Again, there are no guarantees when it comes to trading, and it is always important to do your own research before making any decisions.

The best exchanges to trade AXS include:

Coinbase
Gemini
Gate.io
Binance
Uphold

Remember that trading requires a lot of risks, and it is always important to consult with an experienced trader before making any moves. You can also do your own research into the different exchange platforms to find one that is right for you.

3. Invest in Lunacia Land Plots

Another option for investing in Axie Infinity is by buying land plots known as Lunacias.

These plots can be used to breed and train Axies, or they can be sold when the player is looking for a quick profit.

You buy Lunacias by using AXS tokens, and you also need an available plot of land in order to start breeding.

Each Lunacia has its own unique design, and it is up to players to decide what they want to do with them.

You can customize your land plot NFTs to create a preferred in-game world where you can keep and breed your Axies.

Some of the ways you can make money with your Lunacia land plots include:

Renting them out
Hosting commercial buildings
Selling them to other players
Hosting your own games

You can also form alliances with other players to combine your resources to create one big in-game world.

4. Breeding and Selling Axies

This can be a very profitable option if you know what you are doing

When you breed two Axies together, the offspring will inherit some of their parents’ skills and stats. This means that you can create powerful new creatures by breeding high-level Axies together.

Once you have an Axie that you want to sell, you can put it up for auction on the marketplace. The starting price is usually based on the creature’s stats and rarity, so it is important to do your research before you start bidding.

The cheapest or 'floor' Axies are those with a poor set of starts and go for anywhere between 0.05 to 0.07 ETH.

However, if you manage to breed strong Axie NFTs, you can sell them for a hefty amount. For instance, according to the Axie Infinity website, the highest-selling Axie so far went for 300 ETH.

This is more than $120,000 at the time of writing.

Even with this possibility, your target should not be to create powerful and profitable Axies right away. You should always start by breeding common Axies and then slowly upgrade them to make the most out of your investment.

There is increasing demand for Axies on Axie Infinity as the game's community grow. This presents a lucrative opportunity for early developers and players.

Remember that breeding and raising Axies takes a lot of time and commitment. So, if you want to invest in Axie Infinity but don’t have the time or resources, it is important to bear this in mind.

5. Staking AXS

Another way to make money from Axie Infinity is by staking AXS.

This process allows you to lock up your AXS tokens in a smart contract and earn rewards in the form of freshly issued AXS tokens.

The more AXS you stake, the higher the rewards that you will receive.

This is a good option if you want to earn passive income but don’t have the resources or time to invest in the game.

The best part of staking is that you don’t need to do anything, just deposit your tokens into the contract and wait for the rewards to come in.

You can also withdraw your AXS at any time by sending them back to your Wallet.

Staking AXS is simple. All you have to do is:

Connect your wallet through the staking dashboard
Enter the amount you want to stake
Start staking

To stop staking, you will need to go back to the staking dashboard, then click on 'UNSTAKE' and indicate the number of tokens you want to unstake.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Is Axie Infinity A Good Investment?

Axie Infinity is still in its early stages, and, as such, it is difficult to say whether or not it is a good investment.

The game has the potential to grow in the future as it gains more players and builds a bigger community.

If you are looking for a quick profit, then Axie Infinity is probably not the right investment for you. However, if you are willing to put in the time and resources, then the game offers a number of opportunities to make money.

It is also worth noting that the value of Axie Infinity NFTs is likely to increase as the game grows in popularity. So, if you do decide to invest, it might be a good idea to hold on to your tokens for the long run.

Whether or not Axie Infinity is profitable for you will depend on your investment option or strategy. For instance, if you are looking to make short-term money by breeding and selling Axies, then the game is not a good option.

However, it does offer some lucrative opportunities for stakers who do not have sufficient time or resources to breed and manage their own Axies.

As with all cryptocurrencies, you should never invest more than you can afford to lose. So, before you decide to invest in Axie Infinity, make sure you understand the risks involved.

Conclusion: So, Should I Buy AXS Tokens?

Axie Infinity is a promising blockchain game that offers plenty of opportunities for players, investors and developers to make money.

Whether or not you should buy AXS depends on your investment goal. For instance, if you are looking to make money by breeding and selling Axies, you will need a lot of resources which include a good amount of AXS tokens.

On the other hand, if you are looking to invest in the game as a whole, that is, without having to play, you will need to buy the main AXS token and trade, hold or stake.

The best strategy would be to combine all of these strategies, playing, buying AXS tokens and staking them to earn rewards.

The value of AXS tokens is likely to increase as the game grows in popularity. So, if you do decide to invest, it might be a good idea to hold on to your tokens for the long run.