How Axie Infinitys $ 3 billion valuation led the crypto gambling frenzy

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The article has been updated to highlight the difference between market cap and fully diluted market cap. Axie Infinity, for example, trades at a market cap of $ 7.8 billion and a fully diluted market cap of $ 34 billion.

Axie Infinity, the most popular cryptocurrency game and metaverse project using blockchain, has achieved a stock valuation of $ 3 billion and a fully diluted valuation of $ 30 billion. Its native AXS token surpassed $ 110 over the weekend and is currently trading at $ 29.5 billion.

Axie Infinity continues to grow at a rapid rate as the AXS token appreciates in value.

AFP via Getty Images

In regions like Southeast Asia, particularly the Philippines and Vietnam, Axie Infinity is fueling a digital economy based on crypto assets.

People play Axie Infinity as their main source of income in areas where banking services are difficult to access and often expensive.

Axie Infinity Price on Binance.com.

TradingView.com

Axie Infinity reports $ 1.5 billion in annualized revenue

The gameplay of Axie Infinitys works like this: users buy Axie characters as NFTs and once they have a set of three Axies they can play against other users.

The AXS token is the native token of Axie Infinity. It is used as the main currency of the game. Therefore, if the income of the game is high, the utility of the AXS token increases, increasing its value.

According to Token Terminal, AXS generates approximately $ 28.9 million in weekly revenue.

Annualized, this equates to $ 1.5 billion in revenue, which is comparable to blockbuster games in the traditional gaming industry.

Axie Infinity Stats and In-Game Revenue

Token terminal

It’s expensive to buy NFTs and in-game tokens: what drives adoption?

Since users have to buy NFTs, like Axies, to play games like Axie Infinity, one could argue that there is a high barrier to entry.

The main reason Axie Infinity user activity continues to increase despite the increase in the price of AXS and Axie NFT is the rise of guilds.

Guilds, like YGG, Avocado Guild, and GuildFi, basically allow users to borrow Axie NFTs to play Axie Infinity, with a revenue sharing system.

In this way, users can play games like Axie Infinity without spending large sums of money at the start, and at the same time, support their guilds which offer them the opportunity to play the game.

Users who receive NFTs from guilds for playing the game without a high up-front charge are called Scholars.

YGG, Avocado Guild and GuildFi are said to have between 1,000 and 6,000 scholars.

Metaverse fundraising continues to ramp up

In light of Axie Infinity’s rapid growth and the strong trajectory of guilds, large corporations continue to step up their efforts to fund the metaverse space.

On September 27, Facebook FB announced that it would invest $ 50 million in global metaverse research to develop relevant products.

The metaverse will not be built overnight by a single company. Collaborate well with policy makers, experts and industry partners to bring this to life. We have announced a $ 50 million investment in global research and program partners to ensure these products are developed responsibly, Facebook said.

Metaverse-focused funds like Animoca are also investing heavily in NFT-related projects and crypto-based games.

Animoca released the teaser for an NFT sci-fi game called Phantom Galaxies on September 28, along with Blowfish.

Animoca also recently invested in Warena, a crypto-based play-to-win metaverse that allows users to customize characters and their own metaverse.

Metaverse projects that allow users to create their own digital space are growing in popularity, with long-standing projects like Decentraland and new emerging players like Nifty Island enjoying great community attraction.

Metaverse projects within the crypto space are also actively partnering, creating synergies between communities.

Iluvium, for example, a popular crypto-based RPG game valued at over $ 5 billion in fully diluted valuation and market cap of $ 432 million, in partnership with Deathroad, a metaverse racing game on Binance Smart Chain. .

Star Atlas, a space-themed game on Solana, is seeing a high level of user activity in South Korea, despite the trend that Asian users are more familiar with blockchains developed in Japan or Korea. South, like Klaytn.

New concepts are actively being introduced to the market also in major blockchains outside of Ethereum.

Specifically, Binance Smart Chain and Solana have recently seen an influx of metaverse projects.

The Three Kingdoms uses the ancient Chinese tale as the theme for a game to be won on Binance Smart Chain.

Genopets, a project on Solana, is launching a concept called move-to-earn, innovating on existing ideas that fueled the initial wave of metaverse and crypto-game projects.

This is not surprising given that the Coin98 wallet has seen nearly 80% of user activity come from Binance Smart Chain over the past month.

The growth of Phantom, a native Solana portfolio backed by A16Z, has also seen rapid growth in recent months.

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