What does the future hold for Axie Infinity and the NFT market?

The blockchain-game NFT market had gained exceptional popularity by the conclusion of 2021. Axie Infinity emerged as one of the biggest beneficiaries, handling almost two-thirds of all transactions. This remarkable achievement reflects the vision and commitment invested into the Axie Infinity project.

In this article, we aim to delve into the possibilities of the project and the general NFT market to foresee what the future might bring.

Overview of Axie Infinity

Axie Infinity is an online game that merges the realms of blockchain, gaming, and digital entities, referred to as Axis. A key element of this game is the Non-Fungible Token (NFT), which is a unique code associated with ownership on the blockchain. This token is usually connected to cryptographically secure transaction data, allowing for individual or group ownership and purchase proof to be tracked.

Similar to other blockchain networks, Axie Infinity uses Ethereum’s public ledger system to keep each NFT in a secure file, providing a full history of purchases (or in this context, which creature was “captured” by whom). Moreover, it allows peer-to-peer transactions, enabling individuals to trade or purchase items using cryptocurrency or conventional money.

The primary objective of the game is to gather and breed virtual entities known as “Axis.” Players have the option to buy new Axis from the marketplace or choose from pre-existing options. The collected Axis can be used to compete against other players, with each victory earning experience points (XP). These XP can be used to enhance player’s attributes like speed, power, and damage resistance.

In addition to fighting, players can also breed their unique Axis by merging two existing specimens to produce offspring with new capabilities and power levels. By pairing different parent attributes with varying traits based on luck and randomness, players can ultimately develop more rare forms of Axies with higher values than those available in the market.

Overview of the NFT Market

Non-fungible tokens (NFTs) are distinct digital assets that are likely rare and unique. Despite this, their popularity has soared as they provide people the opportunity to possess digital assets like artwork, music, or digital collectibles. The Ethereum blockchain’s launch played a significant role in this market, and the growth of NFTs can be directly linked to Ethereum’s smart contracts platform.

NFTs stand out from conventional tokens due to their uniqueness—each token signifies ownership of a distinct asset. On the other hand, traditional tokens are indistinguishable duplicates of the same asset. This allows a single user to possess something unique, unattainable by anyone else and cannot be bought, sold, or traded. For instance, in Axie Infinity, players can buy individual NFTs, known as Axies, each having its own unique features and backstory.

The worldwide NFT market has seen a phenomenal surge in growth in recent times, with an influx of creators and investors. Investors are attracted by the dual prospects of potential value appreciation of their collectibles and profits derived from trading activities on platforms such as OpenSea, where tokens can be exchanged for Ethereum or even Bitcoin (BTC). With an increasing number of start-ups venturing into this domain, 2020 is forecasted to be a critical year for the success of this sector, potentially rivaling the ICO Boom of 2017!

Axie Infinity accounted for nearly two-thirds of blockchain-game NFT transactions in 2021

In 2021, Axie Infinity profoundly influenced the NFT market. The blockchain-based game was responsible for almost two-thirds of the market’s transactions. This led to a significant surge in the NFT market and introduced new opportunities for both gamers and investors.

This article will explore the influence of Axie Infinity on the NFT market and speculate about potential future scenarios.

Market Share

The swift rise of Axie Infinity has propelled it to become a leading player in the expanding NFT market. Since its launch in May 2018, the game has experienced significant growth on most major platforms and now stands as one of the top Ethereum dapps in terms of active wallets and transactions. The unprecedented success of Axie Infinity has firmly established it as a major influencer in the NFT market, generating excitement around asset ownership, trading, and digital collectibles.

Axie Infinity, a leading option for Ethereum-based digital assets, now has over 15,000 daily active users. It also tops the list of Ethereum dapps with its total wallet count exceeding 140,000. On average, it records daily transactions of USD 2 million or more. Its numerous features make it a preferred platform for trading virtual cats and other NFTs.

As the demand for this type of asset ownership grows, Axie Infinity is expected to maintain its significant position in the overall crypto ecosystem and could potentially drive wider mainstream adoption.

Popularity of Axie Infinity

Since its launch in December 2018, Axie Infinity, a virtual pet game based on blockchain technology, has experienced a remarkable increase in popularity. Over the past two years, the game’s user base has swelled from roughly 700 to more than 40,000, making it one of the most popular decentralised games.

Axie Infinity’s success has significantly influenced the Non-Fungible Token (NFT) market, with numerous other NFT initiatives employing comparable innovations to establish their presence in this dynamic sector.

Axie Infinity operates using its proprietary cryptocurrency, Axie Shards (AXS), as the in-game currency. Players engage in battles, breed their virtual pets, and use these shards to buy new components, vanity items, and resources. As players buy a variety of gaming assets with fiat currency or cryptocurrencies like Ethereum (ETH), a dedicated community of collectors is emerging. Moreover, a thriving trading market enables players to purchase and sell scarce digital versions of their pet combinations in online auctions. This buying and selling process, often referred to as “flipping,” provides additional incentives for gamers aiming to profit by acquiring low-cost assets and selling them for higher prices once they become valuable or rare.

In addition, it demonstrates advantages that extend beyond just playing the game, providing enduring possession of rare non-fungible assets that possess value determined by what purchasers are prepared to pay for them at any given moment. As the scarcity models and profit opportunities of Axie Infinity become more widely known, it will be fascinating to observe the developments that emerge from this burgeoning concept in 2021 and beyond.

Impact on the NFT Market

Axie Infinity’s success has had a significant impact on the NFT market. The game’s triumph has notably boosted the recognition and worth of all Non-Fungible Tokens (NFTs). Furthermore, the game has played a crucial role in popularising, expanding, and refining the NFT market with its diverse collectibles and robust player community.

The marketplace of Axie Infinity provides a vast selection of tokenized assets that are developed by skilled creators. These creators constantly broaden the range of characters ready for battle and those meant for the environment in a lively digital universe. Players have the option to buy these assets for gaming purposes, or they can choose to “axie land” their assets into territories using smart contracts. This offers assured ownership in a safe setting.

The proliferation of games utilizing collectible tokens, such as Axie Infinity, coupled with ongoing corporate investment in blockchain projects, is expected to drive sustained growth in the NFT market. The surge in investments in 2019 also suggests that 2020 will be a landmark year for Non-Fungible Tokens. With more business applications becoming evident, the NFT market is set to offer even more opportunities for developers and entrepreneurs alike.

Future of Axie Infinity and the NFT Market

In 2021, the blockchain game Axie Infinity witnessed extraordinary growth, representing nearly two-thirds of all NFT transactions in the blockchain-gaming sector. DappRadar reports that Axie Infinity surpassed CryptoKitties in terms of active users, making it the most active in the blockchain gaming industry. This surge in growth bodes well for the future of both Axie Infinity and the NFT market.

Let’s examine some trends indicating a promising future for this technology.

Potential Growth

The scope for expansion for both Axie Infinity and the NFT market holds immense promise. Axie Infinity is in a distinctive position to leverage burgeoning technologies such as blockchain and DeFi, which are gaining increased momentum as they evolve. The game has already seen unparalleled success with a global player base exceeding 300,000 and has the potential to further expand by harnessing new technologies.

The growth potential of the NFT market is equally thrilling. A flourishing non-fungible token market can introduce inventive solutions to numerous conventional business challenges and open up new possibilities for developers investigating these diverse applications.

The NFT market, including Axie Infinity, will play crucial roles in the broader blockchain ecosystem. Through blockchain technology, a secure digital environment is created where unique assets can be easily made, shared, exchanged, and tracked across global networks. This technology gives people ‘trustless’ access to specific items or experiences that may have been inaccessible previously due to geographical or technical restrictions.

Moreover, Axie Infinity reaps the benefits of being part of a broader gaming universe where players are ready to spend on games that provide an immersive experience with top-notch graphics and sound design – all areas in which Axie Infinity excels! As long as these characteristics continue to be its essence, there is a cause for optimism regarding Axie Infinity’s future in the gaming industry and as a platform for NFTs.

Challenges Facing Axie Infinity

The gaming world has undergone a revolution due to the emergence of the metaverse and Non Fungible Tokens (NFTs), but this has not been without challenges for platforms like Axie Infinity and the NFT market as a whole. A major hurdle is scalability, given that the technology is still somewhat in its infancy and technological constraints may hinder certain NFTs from interfacing with others. Also, the trend of counter-trading in-game items on third-party sites for actual money has led to a decline in user spending on in-game purchases. Moreover, the inherently volatile nature of cryptocurrency markets means the future of NFTs is largely tied to the success of blockchain platforms such as Ethereum.

Acquisition costs pose another hurdle for Axie Infinity and the NFT market. Cryptocurrency payments can occasionally incur high costs due to volatile digital currency rates, and blockchain transaction fees can also be problematic. Additionally, multiple instances of NFT-related digital asset fraud have resulted in a loss of consumer trust in overall digital asset markets.

Finally, even though gaming companies and developers increasingly accept it, regulatory ambiguity casts a significant shadow over digital currencies when incorporating NFT solutions. The responses of different countries to these initiatives remain uncertain, potentially fostering an environment of skepticism moving forward. Moreover, as more companies ponder integrating blockchain technology into their operational workflows, uncertainties might persist until worldwide regulations become more straightforward and transparent.

Future of the NFT Market

Non-Fungible Tokens (NFT) have emerged as an asset class that’s expanding at a fast pace in the last few years, with the worth of digital collectibles soaring high. NFTs, unreplicable and untradeable tokens on the blockchain, present an appealing choice for the safe storage and exchange of assets.

The NFT market’s growth is fuelled by the continuous evolution of technologies like blockchain, which enables it to provide financial incentives and digital ownership rights online. This has drawn considerable attention to various platforms that specialize in NFTs, one of them being Axie Infinity. Axie Infinity is a game featuring adorable cartoon pets known as Axies that players can acquire by buying NFTs on the Ethereum blockchain, which they can then use to compete in the game.

What does the future hold for Axie Infinity and the broader NFT market? Given the influx of companies into this sector and the advent of new technology facilitating innovative means of generating unique digital assets, it’s probable that the demand for such assets will only escalate going forward. Moreover, the involvement of significant corporations in the industry, exemplified by Rare Art Labs’ collaboration with Christie’s, makes it clear why there is such a bullish sentiment towards Axie Infinity and the overall non-fungible token sphere.

We are excited to see how these trends will evolve over time and what implications they will have for our financial security, gaming experiences, and opportunities in digital art collecting!