Fri 02 Sep 2022 ▪ 1:00 p.m. ▪
min read – by
The cryptocurrency industry is having a rather complicated year. The bear market affected almost all projects, including Axie Infinity (AXS) which displayed yet good resilience during the first trimester. Indeed, for four months, NFT sales of the Axie platform have experienced a spectacular drop. A blow for this blockchain accustomed to achieving significant sales. Launched in March 2018 by Vietnamese studio Sky Mavis, Axie Infinity is one of the oldest and most profitable projects. But since May 2022, it has been losing ground due to the competition in the NFT market.
Axie Infinity: 99% drop in sales in one year
Nothing has been going well with the Axie Infinity platform for nearly four months. The project, although accustomed to record sales, is going through a fairly complex period with sales under $10 million per month. In August, only $5.71 million in sales were generated by NFTs. These numbers might look good for an ordinary platform compared to the competition, but not for Axie.
Between August 2021 and August 2022Axie Infinity sales were down $842 million. This represents a rate of 99%, a figure that can send shivers down your spine. A year ago, the blockchain was selling for $848 million of NFTs. It was also the best monthly rate in Axie’s history. Even at the cunique collectorsthe platform listed around 305,264, the equivalent of 1.85 million transactions.
Should we fear for the course of the AXS crypto?
NFT projects have a close connection to a crypto’s native token. It is common to see that the failure of a project negatively impacts the value of a cryptocurrency. In the case of the AXS crypto, the fall in sales of the platform’s non-fungible tokens has quite visible repercussions. Only in August, the average investment on the Axie Infinity blockchain has seen a sharp decline. The high reached is $219 million, while the low remained at $79 million. Most alarming is the market capitalization which experienced a significant decline of 20%.
To be more specific, in the span of 30 days, Axie Infinity’s market cap has gone from $1.48 million to just $1.18 million. The lowest price of the token in August is $13.04 and the cap, meanwhile, is $19.46. In total, the drop in the value of AXS tokens is 21% as of August 31. This is proof that the fall of NFTs is having a definite impact on crypto.
Ultimately, sales of Axie Infinity for four months have been in the red with losses of more than 21% in August. The struggles the AXS crypto is currently experiencing can be seen in the game’s sales with losses of 3.19 million in June alone. A decline with serious consequences for all members of the community. If the market continues to be so negative, the future of Axie could be written in dots. Nevertheless, the Axie project is quite solid and the current situation cannot tarnish the bright future that we keep predicting for it. The platform will be able to count on the sequel to its original game Axie Infinity Origins, which received a warm welcome from the community as soon as it was put on the market.
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Doctoral student in financial law and experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. He naturally participates thanks to his articles in the daily blockchain revolution for a better democratization of DeFi.