This Week in the Axie Infinity Market (Sept. 21st to Sept. 28th)

In this edition, we'll look at the past 7 days of the Axie market and recap the highlights from one of the biggest platforms in the history of NFT gaming. 

The numbers in this recap were sourced from Axie's Marketplace Tracker.

The Axie Infinity community has been wanting a change in how Axies are created. Fans across the globe feel that more SLP should be burned or permanently destroyed to create new Axies. And Sky Mavis, the studio behind the NFT gaming sensation, has listened. This past week they announced an update to the Axie breeding fee.

This is huge for both new and old players. More SLP needed to create new axies will act as a better sink for the currency. A sink is when game devs take a material or currency and sink it into something to reduce the total supply, encouraging players to use it so the average player doesn’t have a ton and break the game economy. This is similar to how some grocery chains conduct a buy one get one free deal if they have too many of one product. If they don’t remove the older inventory, it can pile up in the back storage area of the store and impact the efficiency and distribution of other items.

As of this writing, in the past week over $108 million worth of Axies and land have been traded—with over 457,000 axis trading in the past seven days, and less than 500 lands changing hands.

The absolute cheapest or lowest price of Axies is what we call the floor.

In the first few iterations of this market recap, I took the cheapest one or two Axies on the market and analyzed that as the floor. After crunching my numbers, I have found that it’s better to instead focus on the lowest ten (10) Axies on the market. 

This week, the floor range is from $116 to $123. This price has been affected by the drop in the value of ETH. As of this writing, ETH has dropped to below $3k.

We have seen more Axies bought and sold, but their lower prices have led to a smaller overall $ volume.

To breed your Axies, you need to spend the in-game currency SLP, which can be earned in-game or bought/sold on crypto markets like Binance. 

Over the past month, Smooth Love Potion has lost half of its value, dropping from 13 cents at the beginning of the month to where it currently lies at 6 cents. This is the first market recap since the readjustment of SLP & AXS for breeding fees. It may take a few months before we see a difference in the price action. So much SLP may be leaving the market to sell on exchanges that Sky Mavis may need to try more drastic actions to reverse the downtrend we have seen over the past few months.

Another barometer of the Axie economy is their governance token AXS. Users who hold these tokens can vote to shape the direction of the game. Also, they can stake this token to vote and earn more AXS. 

As mentioned earlier, the SLP is not the only thing being affected by the new breeding changes. AXS actually had their cost reduced from 2 to 1 AXS. Over the course of the past week—and zooming out to the past months—AXS has been trading sideways.

ETH has dropped in value over the past month, so the USD prices have fluctuated for some of these lands. The floor is currently around 3.5 ETH. At current ETH prices, that puts it around $10,500. However, earlier this month it would have been approximately $12,000. The land market will get less stagnant after lands gain utility. It’ll be interesting to see the difference in volume after that point.

This has been this week’s Axie Infinity Market recap. If you have any questions or requests for future editions, be sure to follow us on our NFT centered Twitter @NFT137 for your NFT fix!