Is Axie Infinity Profitable In 2021? How To Make Money With Axie Infinity

Axie Infinity.
Courtesy of AxieInfinity.com.

 

This article will introduce readers to Axie Infinity – a blockchain-based game that provides players with opportunities to earn cryptocurrency. More specifically, this Axie Infinity wiki will cover the money-generating aspect of the game, and answer questions such as:

-Can you make money playing Axie Infinity?

-How do you make money playing Axie Infinity?

-And is Axie Infinity profitable in 2021?

 

What Is Axie Infinity?

Axie Infinity is a blockchain-based game where players can raise, collect, and battle pets called Axies. The game is built upon the Ethereum Virtual Machine– specifically a sidechain called Ronin.

Axie Infinity has two tokens – governance token AXS and SLP. Assets in the Axie universe – including Axies – are represented as non-fungible tokens (NFTs).

Axie Infinity was developed by Sky Mavis and is said to have been inspired by the Pokémon universe. The game is supported by or tangentially connected to a number of important crypto protocols, such as Aave (founded by Stani Kulechov), Maker (founded by Rune Christensen), and Binance (founded by Changpeng Zhao), among others.

As of July 2021, Axie Infinity had begun to develop a cult following, allowing users to earn legitimate amounts of money playing it, especially in the Philippines.

The key feature of Axie Infinity is its blockchain-based economy that rewards players for their actions. This model has been termed “play to earn.”

Sky Mavis states that Axie Infinity has taken on the characteristics of a social network and a job platform due to its strong community and play-to-earn opportunities.

 

Is Axie Infinity profitable in 2021?

Axie Infinity’s “play to earn” model has attracted many people to the game, especially in developing countries where regular wages are low.

In August 2020, CoinDesk reported that Axie became a way out of poverty for many people in the Philippines. One player stated he was earning around $206 per week playing the game “around the clock.”

According to a May 2021 report from CoinDesk, Axie earnings allowed players to take care of a wide range of their expenses, ranging from covering school fees to property purchases.

Axie claims to have over 250,000 daily active players and has enabled the trading of over 90,000 ETH via its marketplace.

On May 17, 2021, DappRadar reported that within the previous 24 hours, the Axie marketplace had generated $1.09 million in transaction volumes.

 

How To Earn Money With Axie Infinity?

In its whitepaper, Sky Mavis states that players may earn tokens by:

  • Competing in player-vs-player (PvP) battles to win leaderboard prizes.
  • Breeding and selling Axies on the Axie marketplace.
  • Farming and selling the love potions that are required for Axie breeding.
  • Collecting and speculating on rare Axies (such as Mystics and Origins).
  • Earning Axie’s governance token AXS.

In addition, players may purchase and trade Land plots.

These income-generating avenues are described in more detail below.

 

Tournament prizes

Sky Mavis occasionally hosts tournaments where players may battle each other for a chance to win prize cryptocurrency. The company states that Axie players have earned thousands of dollars of cryptocurrency through tournaments hosted by Sky Mavis or third-party sponsors.

Prize pools vary between tournaments. Some of the cryptocurrencies Sky Mavis has paid out the prizes in include ETH, Luna, and Dai (a crypto-stablecoin used as loan collateral on MakerDAO).

Axie Infinity tournament prizes.
Courtesy of whitepaper.AxieInfinity.com.

 

Breeding and selling Axies

Players may breed the Axies in their possession to create new offspring. The offspring may then be sold to other, typically new players for profit.

To be able to breed Axies, owners need to spend Smooth Love Potions (SLPs, formerly Small Love Potions) and 4 AXS. The required SLP amounts depend on how many times an Axie has already been bred.

Axie breeding costs.
Courtesy of whitepaper.AxieInfinity.com.

 

Axies become sterile after being bred 7 times.

Axie offspring may be sold on the Axie marketplace. The sale price depends on the characteristics of an Axie (such as their body parts, class, or health) and may range from hundreds to tens of thousands of dollars (sometimes higher).

As of mid-July 2021, the most expensive Axie ever was sold in November 2020 for 300 ETH (approximately $130,000 at the time).

 

Selling Smooth Love Potions

Smooth Love Potions, or SLPs, are earned in the PvE (player versus environment) Adventure mode and on the PvP arena. Earned SLPs may be claimed once every 2 weeks.

SLP tokens are intended to be used for breeding Axies, but they may be sold on cryptocurrency exchanges such as Uniswap (founded by Hayden Adams) or Binance as well.

Between May and July 2021, SLP’s value ranged between approximately $0.1 to $0.3, according to CoinMarketCap.

SLP price.
Courtesy of CoinMarketCap.com.

 

Trading rare Axies

A number of rare Axies exist in the Axie universe, as described in a guide published on Axie Infinity’s Medium page in September 2018.

There are four types of rare Axies that may serve as a way to generate income for players – Origin Axies, Mystic Axies, Low ID Axies, and Meo Corp Axies.

Origin Axies feature special tags represented on the blockchain. They also have a distinct victory pose and may be used as an “entry ticket” to certain experiences (such as the closed beta of Axie Infinity). Only 4088 Origin Axies exist.

As of September 2020, 275 unredeemed Origins Axies remained. Sky Mavis plans to distribute them through epic contests, tournaments, and special events.

Origin Axies available for sale may be viewed on the Axie marketplace. Their prices start at thousands of dollars.

Origin Axies on the Axie Infinity marketplace.
Courtesy of marketplace.AxieInfinity.com.

 

Mystic Axies are Origin Axies that have one or more Mystic body parts. According to the Axie Infinity collector’s guide, each of the 6 body parts of an Origin Axie has a 1/18 chance of being Mystic.

In the Axie Marketplace, players may filter Axies based on the number of Mystic parts they have – up to 6. As of July 2021, no Axies with 5 or 6 Mystic parts were available.

Origin Axies with one Mystic part.
Courtesy of marketplace.AxieInfinity.com.

 

Mystic Axies on the Axie Infinity marketplace.
Courtesy of marketplace.AxieInfinity.com.

 

Origin Axies with three Mystic parts.
Courtesy of marketplace.AxieInfinity.com.

 

An Origin Axie with four Mystic parts.
Courtesy of marketplace.AxieInfinity.com.

 

Low ID Axies are older Axies that have a low ID number.

Low ID Axies.
Courtesy of marketplace.AxieInfinity.com.

 

Meo Corp Axies originate from eggs sold from the Axie Egg Lab. Axie Egg Lab sales occur infrequently, which adds to the exclusiveness of Meo Corp Axies.

Meo Axies.
Courtesy of marketplace.AxieInfinity.com.

 

Trading Land plots

Axie Infinity players may purchase and trade tokenized Land plots. Land plots act as the home and base of operation for the players’ Axies, and they also contain resources and occasional supplies of AXS tokens for players to find.

Axie Infinity has a total of 90,601 plots of Land, which are collectively called Lunacia. The vast majority of Land plots hadn’t been purchased as of mid-July 2021.

Owned and unowned Axie Land plots.
Courtesy of whitepaper.AxieInfinity.com.

 

Players may trade owned Land plots on the Axie marketplace. Prices typically start in the thousands of dollars.

Axie Land plots on the Axie marketplace.
Courtesy of marketplace.AxieInfinity.com.

 

Plots on Genesis Land are especially valuable due to their rarity. Genesis Land is located in the center of the Lunacia map and is capped at 220 plots.

During the initial Land Sale in January 2019 when 25% of the available plots were sold, 75 Genesis plots were distributed.

In February 2021, Decrypt reported that 9 Genesis plots were sold for over 888 ETH (approximately $1.5 million at the time).

 

Earning the AXS governance token

AXS, or Axie Infinity Shards, is the governance token of the Axie universe. AXS may be acquired on Binance or Uniswap, and it can also be earned as a reward for certain in-game activities.

Axie players may use AXS as payment within the Axie marketplace. AXS also grants its holders voting rights in the Axie universe. Staking functionality is planned for AXS as well.

The total supply of AXS is 270,000,000. At the initial public sale of AXS in 2020, 59,985,000 AXS was released into circulation. The unlock schedule and allocation of AXS are displayed on the Axie website.

The allocation of the AXS token.
Courtesy of AxieInfinity.com.

 

According to CoinMarketCap, AXS was valued between approximately $2 and $10 in spring 2021 and nearly reached $30 in July 2021.

The price of AXS - the governance token of Axie Infinity.
Courtesy of CoinMarketCap.com.

 

Does Axie Infinity Need Investment?

Axie Infinity does require investment to start playing. On its official “getting started” guide, Sky Mavis writes that players need to acquire 3 Axies from the Axie Marketplace to be able to play. Purchases on the Axie Marketplace are made with ETH, and players are required to deposit ETH to their Ronin wallets to buy in-game assets.

The initial investment necessary to start playing Axie has increased over time. According to CoinDesk, a team of three Axies cost $5 in mid-2020 – against around $1,000 in May 2021.

 

Conclusion

To find out more about Axie Infinity, visit its official website, whitepaper website, and Twitter page.

The Axie Infinity team also runs The Lunacian newsletter on Substack.

 

 

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