According to a recent report compiled by NonFungible, players of the monster battle nonfungible tokens, or NFTs, the game Axie Infinity traded nearly $3.5 billion worth of NFTs in 2021. This accounts for nearly two-thirds of all NFTs settled across the entire blockchain game industry by 2021. In second and third place were sports highlights, marketplace NBA Top Shot at $827 million and community gaming platform Loot at $242 million, respectively. .
Created by Vietnamese video game developer Sky Mavis in 2018, the game features creatures called “Axies” that players collect and use to complete daily missions, duel other players, etc. Each Axie is an NFT that has been minted on the Ethereum (ETH) blockchain. Completing tasks with Axies rewards players with Smooth Love Potions (SLPs), which can be sold for cash on cryptocurrency exchanges, generating a stream of income for players. Overall, Axie Infinity accounted for 19% of the estimated $17 billion in total NFT transactions last year.
Last November, Axie Infinity rose significantly in popularity, especially among gamers in developing countries, where you may be able to earn more from playing Axie Infinity than from minimum wage jobs. However, players have complained to the developers that their revenues have fallen in the face of SLP’s 67.5% drop in price over the past year.
Although the price drop can be partly attributed to rising token inflation as more and more players join in and play the game. At the time of publication there are nearly 2.7 million monthly Axie players, compared to just north of 1 million last March. But from July 2021 to now, SLP’s circulating supply has increased from 541.7 million to 5.13 billion.
Overall, blockchain gaming enthusiasts bought and sold $5.18 billion worth of NFTs last year across 20,986,532 sales. In addition, there were a total of 112 blockchain games and 1.88 million active wallets. Based on analysis by NonFungible, these metrics accounted for 2.18% of the world’s total gaming market in 2021.