Axie Infinity is a video game that can also be used to make money. The AXIE coin is the digital currency produced by the game as players trade in-game items for digital money.

The game requires an initial investment much higher than the average video game- somewhere around $600 on average. The initial cost was much lower when the game launched- closer to $10 US- but the price has skyrocketed with the popularity of the game.

The AXIE coin is not currently offered on major exchanges, making it difficult to trade with other cryptocurrencies. Still, Axie experienced a 600% price jump from June to July in 2021, making it a very popular speculative investment option.

In order to get AXIE coins, Axie Infinity players need to earn Smooth Love Potions (SMP) and trade them in for Axie coins. The Axie Infinity game also creates non-fungible tokens (NFTs) through its in-game characters. Each Axie functions as an NFT, and players need to buy three of them to get started with the game. This gives players two potential money streams in the game, and many people have given up their jobs to play the game full time.

Axie Infinity Breakdown

Axie infinity is currently ranked #39 among cryptocurrencies, and it is gaining popularity fast. So far, about 61 million Axie coins have been created, with a possible supply of 270 million. It runs on the Ethereum blockchain and uses smart contracts to verify its transactions.

To earn tokens inside of the Axie Infinity game, players must be very skilled and play well. They also need to contribute to the game, building up the ecosystem by purchasing and developing land, characters, and potions.

Investors can purchase AXIE outside of the game as well, buying coins from other people who have earned their money in-game. This blockchain game is designed to be very simple to play and to empower its users to build up the economy through their transactions and playstyles. Players can access the game through desktop computers, laptops, tablets, and smartphones.

Because AXIE isn't offered on the most reliable cryptocurrency exchanges, there is risk of fraud, theft, and government crackdown, which means AXIE owners constantly run the risk of losing their entire investment, if they are not careful.

Axie Infinity History

Axie Infinity began in 2018, and it was developed by Vietmanese game company Sky Mavis. It has huge player bases in Venezuela, the United States and the Philippines. The game started out slowly, with a concept that had been done before by other games but quickly soared in popularity in 2020.

In late 2020, the most expensive Axie character in the game sold for $120,000 USD, and that high profile sale helped to bring the game and the token into the mainstream. In 2021, a piece of land in the game sold for $1.5 million USD, which was a record-breaking transaction in the history of NFTs.

The game and its corresponding token have continued to skyrocket since then, but it's difficult to say how long the Axie Infinity rate will continue to climb. It is moving into untested waters here, so it is anyone’s guess where the token will end up or if the game will continue to grow or retain its user base. AXIE is currently the most popular and highly traded gaming cryptocurrency available.

Axie Infinity Price Factors

Axie Infinity’s price is affected by a few kinds of price factors, including the popularity of the game, economic factors, and more. It's important to track these factors on your own if you're investing in AXIE so that you know when to expect bullish or bearish behavior from the market.

The Game's Popularity

When Axie Infinity has a large user base, the value of the AXIE coin improves. A very busy and extensive user base means there's a lot of trading going on with the token and the market is very active. As the user base wanes, the value of Axie can drop. We've seen this when the game was relatively new and the price stayed around $0.50 (AXIE/USD). In July of 2021, though, it’s nearing the $50 mark.

Economic Factors

It's still too early to tell how AXIE will be affected by economic factors as the game and the token haven't been around very long. If it behaves anything like other cryptocurrencies, though, it will be directly affected by economic events. Investors can expect the value of AXIE to decrease as the economy worsens and then to improve as the economy recovers. In times of economic hardship, fewer people will be making risky investments in cryptocurrencies, meaning lower trade volume for AXIE.

Trading Axie Infinity

Because AXIE is not available on most of the major cryptocurrency exchanges, it can be difficult to cash out into fiat currency or trade with other cryptocurrencies. It cannot be traded on most major US currency exchanges, so even though many people post about making an average of $1,500 USA a day on the game, very few are actually able to trade out their AXIE tokens for US dollars.

Trading in cryptocurrencies and non-fungible tokens (NFTs) like AXIE is very risky. The central currency is not backed by a central bank nor issued by the government, so it's real world value can be extremely volatile. The price can fluctuate wildly from day today and from hour to hour, making it easy to lose a lot of money very quickly or to make quick profits.

This is why it is important that potential investors use the powerful investing tools offered on FX Leaders. They can follow the AXIE chart and use expert analysis provided here and through other sources to minimize their risk of financial loss. It's also helpful to follow news stories about AXIE and the wider cryptocurrency market, as well as economic and world news to try to protect where the Axie Infinity rate may go.