Is it Worth it to Buy Axie Infinity?
Everyone is buzzing about Axie Infinity, but what exactly is it and how does it work? Since May, many cryptocurrencies have witnessed major price declines. But it seems like there's an exception every few of weeks. Some lesser-known cryptocurrency will make waves thanks to a big price increase.
Everyone is buzzing about Axie Infinity, but what exactly is it and how does it work? Since May, many cryptocurrencies have witnessed major price declines. But it seems like there’s an exception every few weeks. Some lesser-known cryptocurrencies will make waves thanks to a big price increase.
The most recent is Axie Infinity (AXS). In little than a month, its value increased by about 550 percent. It was trading at $4.45 and had reached an all-time high of $28.61. Let’s see why Axie Infinity became so popular, and whether it’s still a decent offer.
What Axie Infinity?
Axie Infinity is a cryptocurrency gaming platform. Axie’s objective is to make blockchain technology accessible to the general public in a pleasant way. It’s an Ethereum (ETH)-based play-to-earn cryptocurrency.
The Axie Infinity Shard token (AXS) and the other in-game token, can be earned in a variety of ways. In this Pokemon-inspired universe, players breed, nurture, and combat Axies to win tokens. Those who do not wish to participate in the game can purchase both tokens on decentralized markets.
Axies are cute digital pets, similar to CryptoKitties, collectible digital kittens that started the NFT frenzy, and each one is unique. They can also be bought and traded as non-fungible tokens (NFTs). The cheapest Axies on the market today cost roughly $200, while the most expensive one went for 300 ETH or almost $550,000.
The game’s popularity, particularly in underdeveloped countries, stems from its earning potential.
Is it Worth it to Buy Axie Infinity?
Before you buy Axie Infinity, there are a few things to think about.
Do you have any interest in crypto gaming? : It’s not a good idea to buy something you don’t understand in the hopes that the price will rise, just like it’s not a good idea to buy something you don’t understand in the hopes that the price will rise. As a result, if you want to buy this currency, you must first understand crypto games.
It’s a fascinating part of the cryptocurrency industry, especially because NFTs have completely changed the concept of in-game assets. As blockchain technology advances, crypto platforms may be able to host more intricate games, and pay-to-earn coins like Axie will certainly become more common.
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However, the technology must still overcome a number of obstacles. Scalability is one of the most important. The bulk of applications are built on Ethereum’s network, which is currently congested and expensive to transact until it can be upgraded.
Would you like to take part in Axie? : When you purchase cryptocurrency, you are frequently purchasing both a coin and a community. Several coins are predicated on token owners’ active participation. If you acquire the currency as an investment and don’t intend to participate, you could not get the full benefits.
Staking, for example, will be introduced soon by Axie. This allows token owners to earn interest by tying up their currency for a certain period of time. Staking Axie tokens, on the other hand, will be tied to your involvement in the game or voting in governance choices.
Axie investors profit if the coin’s value rises. Axie gamers, on the other hand, make money from the game by actively playing in it. If you’re thinking about buying Axie, I’d suggest that you need at the very least be familiar with crypto games. And you should preferably want to play the game.
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Do you believe the company has a lot of long-term potentials? : You have to ask how much further a coin can go when it leaps 550 percent in a month. A common pattern is for people to pile into a coin just because the price is rising. This not only raises the price, but it also raises the possibility that those investors will buy at a high price. That is why it is critical to conduct your own study and consider the long term.
Axie has a lot going for it on paper:
- Its leadership team has experience in both blockchain and gaming.
- It has a whitepaper with a clear roadmap and objectives.
- It is profitable. Axie Infinity made $40.2 million in the last seven days alone, which tracks the earnings of several protocols.
However, the significant price increase makes it feel more like a one-time purchase rather than a long-term investment.
Do you feel at ease purchasing from a non-US exchange?
The largest cryptocurrency exchanges in the United States do not provide Axie. This may change in the future, but it currently makes purchasing the token difficult for citizens of the United States.
Purchasing from exchanges that aren’t licensed to operate in the United States comes with its own set of concerns. Investors may be unable to sell particular currencies or their accounts may be frozen entirely.
If Axie is able to list in the United States, we may witness another price increase. But, for the time being, it appears to be a promising cryptocurrency to keep an eye on. Take the time to learn about the gaming industry and see if the price stabilizes after such a large jump.