The honey badger of NFT marketplaces pushes up when all falls down
Axie Infinity keeps surprising as the official marketplace has seen an 8% growth in trading volumes, despite crypto taking a heavy blow this week. The Axie marketplace recorded $157.85 million in NFT trading volume, taking the second spot behind market leader OpenSea.
The Axie Infinity marketplace recorded 140,986 traders being active on their marketplace, responsible for 443,742 sold NFTs. These NFTs include Axies, but also virtual land or land items. The average price of an NFT on the Axie marketplace is now $355.
Trading on the Axie marketplace, which is powered by the Ronin sidechain, is free. There are no gas fees required. As a result users aren’t hampered by ‘gas fee wars’ as seen on the Ethereum blockchain. As long as value remains on Ronin, users can trade in ETH no matter what. This makes crypto price swings less impactful on NFT trading in the Axie ecosystem.
With $157.82 million in trading volume, the Axie Infinity NFT collection is once again the most valuable project over the past 7 days. Loot for Adventurers ($96.49 million) and CryptoPunks ($46.59 million) take second and third place.
Impact of crypto price swings on Axie
On the Axie marketplace users trade using ETH, or actually a wrapped version of it. Because all trading happens in ETH and there’s no support for stablecoins (yet), crypto price fluctuations hardly impact the trading activity on the Axie marketplace. However, the ecosystem also houses two other tokens. AXS is the governance token for Axie Infinity, while SLP is the utility token that players can earn.
AXS has seen its price go up from $3,91 only three months ago, all the way to $92 on September 4th. The recent crypto dump pushed the price of AXS down to $68 at the time of writing.
However, where crypto price swings have the most impact, is on SLP. Players earn SLP by competing in online battles, tournaments and completing quests. An entire economy of players borrowing Axie NFTs in order to play and earn SLP has been created, and families in developing countries like The Philippines can make a living on their game activity. However, SLP is now at its lowest point since May 24th.
SLP had a value of $0.34 in July, and has since then been falling off a cliff. At the moment of writing SLP is worth $0.095. Players who make a living, playing Axie Infinity, have seen their earnings diminish.