The NFT sector is suffering huge losses amid the cryptocurrency market's fall, with Play-to-Earn games being affected the most. According to all-time data, Axie Infinity collections still lead the NFT market with 20 million transactions and a $4.3 billion turnover. But in terms of last month's ranking, they're 29th.
Players are fleeing the platform. In January 2022, there were 2.8 million users. Now, however, that number is less than 350,000. In other words, the user base decreased by 88%.
The reason is simple: the lack of an opportunity to invest and earn. At the same time, the intra-game tokens used to upgrade and buy Axie pets dropped by 95% (valid for both SLP and AXS).
Players see no point in buying additional gaming elements or upgrading characters, as all the mid- and long-term efforts will be destroyed by the tokens' declining value. On top of that, it seems the gameplay itself isn't engaging enough.
Developers who continue to hand out coins from the reserves at a shocking pace are adding fuel to the fire. Another 200 million AXS, a quarter of the total issuance, will be unlocked within 3 years. The soonest such occurrence is expected to happen on 20 October, with 14.8 million AXS worth $67 million being unlocked.
Earning is the key to attracting players in PtE-model games. Since February 2022, players have mostly suffered losses, which resulted in expected disappointment. If the trend persists, AXS will drop even further, and the last users will leave the game.
StormGain Analytical Group
(platform for trading, exchanging and storing cryptocurrency)
