P2E gaming is stagnant, but Axie Infinity (AXS) may recover

09-Jul-2022 By: Rohit Tripathi

P2E gaming is stagnant, but Axie Infinity (AXS) may recover

If market players consider the beginning of land staking, an increase in activity on the Ronin bridge, and impending roadmap targets to be bullish catalysts, AXS may regain its former lustre.

Axie Infinity (AXS), a mobile, blockchain-based game where players collect, breed, grow, and battle nonfungible tokens (NFTs) called Axies for financial rewards, pioneered the play-to-earn gaming trend in 2021, which was one of the cryptocurrency market's breakout segments.

Following many setbacks, including a $600 million hack of the Ronin sidechain that houses the game, the AXS price retraced from an all-time high near $170 to its current price at $15.20 as the market crested and then entered what has become a deep bear market.

Advocates are eagerly monitoring to see if this erstwhile unicorn has changed course since the future of P2E gaming is still up in the air. Let's examine some recent Axie Infinity developments to see if any of them have the potential to be positive in the near and long term.

Introduction of land staking

The most recent innovation to come from the Axie Infinity ecosystem is the use of land stake parcels to earn AXS tokens.

According to data published by the Ronin Chain explorer, holders have found land staking to be popular, and at least 87 percent of all plots at each level have already been staked.

Several land plots recently sold for over 130 Ether (ETH) each, which indicates that the level of interest in the game is still high, in addition to the success of land staking.

While landowners are thrilled about the new income prospect, some members of the community are worried about the impact the 11,194.62 AXS daily incentives will have on the token price as the supply grows.

Only 38.47 percent of the currently circulating supply is being staked, indicating that the rest of the supply is accessible on the open market and may be sold off. The platform also offers AXS staking, which has a current yield of 72 percent.

Reopening of the Ronin bridge

Another encouraging development for Axie may be the recent reopening of the Ronin bridge, especially in light of the fact that it had been shut down as a result of a $600 million hack in March of this year.

The assets on the bridge are "completely backed 1:1," according to Axie Infinity, and the project included 11 more validators, circuit breakers, and finished the two external audits. Members of the community have been made whole by the reimbursement of all lost user funds.

The amount of transactions has been significantly impacted by the restoration of the Ronin bridge and the introduction of land staking.

The Community welcomes the present reforms.

Most community responses to the new changes have been favourable, and many people are anxious to return to the game now that it has finally passed through some significant obstacles.

The community needs a boost of enthusiasm when we lost a significant sum in the treasury fund, according to early Axie Infinity investor Alyssa Exposito.

The circulating supply of AXS, how staking rewards affect the circulating supply and price, and various token lockups and vesting schedules that could result in significant sales and price drops in the future are the main topics of discussion among members of the Axie community.

Overall, the protocol appears to be meeting the significant milestones indicated on its roadmap and has taken the necessary actions to recover from the Ronin hack. Aside from what the project can accomplish internally, much of its future depends on how the P2E industry as a whole performs.

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