Ark Invest analyst Nick Grous said in a note Monday that Axie Infinity AXS/USD has the potential to “turbocharge” play-to-earn gaming.
What Happened: Grous noted in the Cathie Wood-led Ark's weekly innovation newsletter that the gaming ecosystem is “ever evolving” and Axie Infinity has “introduced a new genre of games that are not free-to-play but play-to-earn.”
“Enabled by the tokenization of in-game assets, we believe Axie Infinity is the foundation of an emerging economy,” wrote Grous.
AXS traded 5.08% lower at $39.25 over 24 hours. For the week the gaming-related token is up 3.57%.
AXS has skyrocketed 6,532.41% since the year began, which is almost double 3,443.72% gains of Dogecoin DOGE/USD in the same period.
See Also: How To Buy Axie Infinity (AXS)
Why It Matters: The analyst explained how Axie Infinity that was founded in 2018 worked noting that the goal of the game was to breed, raise, battle, and trade Axie, which he said are “Pokemon-like creatures.”
Grous also touched on Smooth Love Potion SLP/USD, which can be earned by winning battles on Axie Infinity. SLP traded 0.69% higher at $0.21 over 24 hours.
See Also: This NFT Cryptocurrency Has Overtaken Dogecoin In YTD Gains With Meme Coin Crash
“By breeding Axies and earning SLP, full-time players earned $1,500 on average and generated $200 million in platform fees last month alone,” said the Ark analyst.
As per Grous, 40% of Axie Infinity’s 350,000 daily active users live in the Philippines.
“Not surprising because those who lost jobs during the COVID-19 pandemic can earn more playing Axie Infinity than the $900 per month average income that they might earn otherwise.”
This month, Ark said that the growth of non fungible tokens, or NFTs, remains strong with analyst Frank Downing pointing to Axie Infinity’s record-breaking hosting of $170 million in June.
Photo: Courtesy of Axie Infinity
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