Ronin brings Axie Infinity to the masses
Leading blockchain NFT game Axie Infinity has had an incredible few days. Surges in both the number of traders and sales propelled it to become the number one NFT collection according to data from DappRadar. Interestingly, the game seems to have been spurred on by a switch to the Ronin sidechain and positive news reports highlighting the benefits of play-2-earn mechanics during the pandemic.
In the last 24 hours, the number of traders on the Axie marketplace has increased 2.3% to 2,064. This increase pushed the number of sales to over 3,750. Generating over $1.09 million transaction volume. The surge is more remarkable when considering that Axie Infinity had just over 10,000 traders and $15 million in transaction volume.
Looking deeper at sales activity on Axie Infinity in the last 24 hours we can see the marketplace is extremely active. We see land plots selling up to $8,000 and several Axie sales between $200 and $900 as more people want to buy Axies and get in on the play-to-earn action. Another scenario would be that speculators gamble on a new wave of users, and therefore acquire valuable assets. Importantly, Axie’s recent transition to the Ronin sidechain is what is making low-value transactions affordable for players, giving the game’s economy a boost.
One major stimulating factor has been Axie Infinity’s recent shift to the Ronin sidechain. The intention behind Ronin is to bring economic freedom to Axie players by streamlining the user experience and removing the burden of expensive gas fees on Ethereum. Gas fees are a hot topic right now, mainly in the DeFi sector. Where transaction charges on smaller Ethereum based token exchanges and actions hit all-time highs amidst pressure on the network.
Those higher fees might be acceptable when moving thousands of dollars, but not when trying to purchase an Axie NFT or trying to cash out earned SLP tokens. For often the gas fees on Ethereum would outweigh the value of the transferred assets. For players, Ronin means they can now breed, buy, and sell Axies on the Axie Marketplace. Furthermore, they can now use AXS and claim SLP rewards on Ronin.
Another reason for the surge could be attributed to the publication of a new documentary on May 13th, which highlights the way Axie Infinity has helped people in the Philippines to make a living amidst the pandemic. This documentary fits in a series of news articles that highlight the game’s ability to help those in developing countries.
The play-2-earn blockchain mechanic becomes increasingly recognized. It spreads a positive sentiment, coupled with the ability for players to actually influence their real lives. As a result, this trend is sending Axie Infinity to new heights. It will be interesting to see just how far it can go and what other innovations the Axie team will add as we move through 2021.