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It is unusual for a blockchain-based project to thrive during a bear market because interest in it decreases as prices fall. Bitcoin, Ethereum, and the overall market fell precipitously between May and June 2021, and other altcoins suffered similarly in terms of valuation.
The NFT space, on the other hand, has been surprisingly active, and one particular blockchain game has outperformed expectations. We’re looking at you, Axie Infinity.
The rise and spread of Axie Infinity
In terms of data evaluation, Axie Infinity has achieved astounding results in recent weeks. In terms of price, it has increased by 1122 percent in the last month and by close to 205 percent in the last week. As a result, it was the best-performing asset during the market’s bull run.
These statistics, however, are not the most important in capturing Axie’s meteoric rise. Unfortunately, dissecting every piece of on-chain data will be time-consuming. As a result, we’re taking a look at the key highlights for the blockchain game in the last month.
- Axie registered an increase of 475% in sales volume in the month of June
- The game has more than 370,000 active members globally
- Over the month of July, Axie generated an average of $25 million in daily sales volume
- It attracted more than 5000 daily unique wallets, with usage increasing 360% from Q1 to Q2.
What is really working for Axie?
While Axie Infinity is a blockchain-based game, it features the innate importance of NFTs within the game. This has led to explosive growth in sales and volumes.
Now, keeping that in mind, Axie Infinity is currently the most valuable NFT collection in the space. Since the start of 2018, the game has amassed over $753 million in Axie NFTs. Surprisingly, more than half of those sales were completed in the last few weeks. Furthermore, by the end of August, the blockchain game is expected to be the first entity to generate more than $1 billion in NFT trading volume.
Did any other factor play a role in its success?
In the cryptocurrency market, there is never smoke without fire, and one of the main reasons for Axie’s success is Ethereum’s sidechain Ronin.
The Ethereum network’s sidechain allows users to interact with one another globally without incurring transaction or gas fees. It is worth noting that Ethereum played a role in this by providing a stable foundation for the sidechain to function more efficiently. This may have contributed to Axie Infinity’s success.
While many projects are migrating to other platforms, Ethereum’s involvement in the largest NFT selling project only strengthens its position as the most desirable foundation.
The surge in interest in Axie’s NFT only serves to encourage more artists and developers to take this space to a new level of interaction, with Ethereum possibly remaining at the centre of it all.