As cryptocurrency and DeFi continue to impact the world, several industries are working hard on ways to innovate with decentralized technology. The gaming industry is one of the latest to integrate blockchain, crypto, and NFTs, especially with the growth of the metaverse. The technology has transformed the way gamers trade in-game assets, characters, rewards, and so much more by integrating DeFi, NFT technology, and fundamental blockchain concepts.
Prior to the advent of the Play-to-Earn model, in-game tokens and assets had no real-world value. Because the reality is that the commercial first movers in gaming had their own proprietary currencies. What makes GameFi so attractive to the new wave of gaming developers is that it can be automated without any centralized intervention.
What’s more, the business’s core revenue and the performance of AXS are closely correlated. "The interplay between own Axie’s revenues and AXS price is noticeable," wrote Jeremy Ong and Jayden Andrew, analysts at crypto-focused research firm Delphi Digital. "This makes sense given the majority of revenues come from Axie breeding fees paid in AXS to the treasury, which significantly decreases the circulating supply of AXS - causing a supply-side squeeze.