Daily earnings in an Ethereum (ETH)-based game Axie Infinity fall below the Phillipinian minimum wage
This year, the Axie Infinity blockchain game, created by Sky Mavis studio, has shown incredible growth and recently reached the $3.23 billion (~£2.4 billion) mark in all-time sales. However, in their recent study, Naavik researchers said that Axie Infinity “scholars” players are seeing a decrease in daily earnings, which have even dropped below the minimum wage of the Philippines.
Daily earnings decrease
Based on the Ethereum blockchain, Axie Infinity is one of the most popular distributed ledger network video games. Since 2018, when Sky Mavis launched the game, the all-time sales of game NFTs amounted to $3.23 billion (~£2.4 billion).
Although the blockchain gaming project showed growth in the first half of the year, the daily earnings of a typical player began to fall, according to Naavik.
The company’s researcher published a report on NFTs gaming platforms and reflected on whether Axie Infinity is “infinite opportunity or infinite peril”. Lars Doucet, one of Naavik’s representatives, shared some of the findings on Twitter:
A job, not a game
“Scholars” are players, typically in developing countries, who cannot afford to purchase [three] Axies (NFT-based virtual Pokemon-like creatures) which are necessary to play the game. They are loaned these assets by ‘sponsors’ who take a cut of their earnings,” Doucet added.
Meanwhile, bitcoin.com reports that Naavik researchers claim that the growth rate of the game is to slow down. “This month-over-month DAU growth trend shows that Axie Infinity’s growth spurt is somewhat decelerating, but a deceleration following such an impressive burst of growth is to be expected,” the study says.
The Naavik study reveals that the majority of Axie Infinity players come from low-income areas, like the Philippines and Venezuela, and their “foremost motivation is to earn money”. Because of that, the retention rate of the game is more like “the retention rate of a job”.
“It’s possible that as long as Axie Infinity enables its scholar-dominated player base to earn more income than they would doing normal jobs in their home countries, long-term retention and DAU growth will continue to remain healthy,” the Naavik authors think. “All in all, Axie Infinity’s growth spurt is decelerating (although still positive), and a majority of its player base treats the game like a daily job to make daily financial ends meet.”
So, despite the temporal decrease in the daily earnings, the game is predicted to stay as popular and profitable, providing its players with a stable source of income.
I am sure that crypto assets are a new type of economy. We are at the origins of the crypto revolution. Right now, it is worth studying what cryptocurrencies and the blockchain are in order to make the most of this knowledge and these skills in the future.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.