Axie Infinity’s Rapid Ascent

One of the biggest catalysts for Axie Infinity’s growth was migrating the game from Ethereum mainnet to an Ethereum-linked sidechain.

Known as “Ronin,” the sidechain is made specifically for Axie Infinity and handles all in-game and marketplace transactions of Axies, land, and items. Launching a dedicated sidechain has drastically reduced gas fees and improved transaction speeds. Additionally, Ronin has simplified the onboarding process for new players, allowing those with little experience using blockchains to start playing.

While the Ronin sidechain has helped improve Axie Infinity’s in-game experience, attracting players who were not already interested in blockchain technology has also been key to the game’s growth. Axie Infinity works on a “play-to-earn” model, where players are rewarded with the SLP (“Smooth Love Potion”) token for the time and effort spent playing the game and growing the ecosystem. The model has been particularly effective in the Phillippines, where the game has exploded in popularity in recent months. Using current SLP prices, playing the game every day can net over $1,200 a month for the average player. While this rate may not be competitive in most western countries, in the Philippines, it amounts to more than five times the minimum wage in some regions.

With the ability to earn money through the game, many of Axie Infinity’s new players have come from economically disadvantaged countries. Over 40% of all traffic to axieinfinity.com comes from the Philippines, with a further 6% logging in from Venezuela. Traffic from the U.S sits at just over 5%; however, if the game’s popularity and in-game earnings keep increasing, more U.S players may start playing.

As the amount of money earned playing Axie Infinity increases, so does the number of people who want to start playing. With Axies in high demand, the cost barrier to entry has increased substantially since the game began. While many people in countries like the Philippines want to start playing and earning, few have the $1300 needed to buy a set of three Axies. This is where scholarship programs come into play.

In response to players not being able to afford the Axies needed to play the game, players and guilds have started offering scholarships. An Axie scholarship is where a manager or guild (the scholar) lends out three Axies that a player (student) will use to play the game and earn Small Love Potions (SLP). The amount of SLP earned by the player is split with the manager or guild at a predetermined ratio.