Play-to-Earn Giant Axie Infinity’s Revenue Tanked 40% in September

The company’s monthly revenue was second only to Ethereum’s $830 million among blockchain-based apps, Token Terminal data show.

AccessTimeIconOct 1, 2021 at 8:39 a.m. UTC
Updated May 11, 2023 at 4:04 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Rapid growth for blockchain-enabled play-to-earn game Axie Infinity came to a screeching halt in September, with revenue sliding by 40% from August, the first month-over-month decline for the company since January.

The monster-battling game that uses non-fungible tokens (NFTs) to reward players made 64,933.71 ether (ETH), worth $220.32 million, in September, down from a record $342 million in August, data center Axie World shows. While September’s figure represents a nearly 3,000-fold year-over-year growth, it’s only about 10% of the pace of the month before.

  • AI Will Make Music 'Come Alive Again,' CreateSafe CEO Says
    00:39
    AI Will Make Music 'Come Alive Again,' CreateSafe CEO Says
  • A Look Back: Blockchain Technology in 2023
    00:54
    A Look Back: Blockchain Technology in 2023
  • Why Zug Is Ranked as the Top Global Crypto Hub of 2023
    02:44
    Why Zug Is Ranked as the Top Global Crypto Hub of 2023
  • Why Injective's INJ Has Surged 3,000% in 2023
    00:52
    Why Injective's INJ Has Surged 3,000% in 2023
  • Among blockchain-based applications, Axie’s monthly revenue was second only to Ethereum’s $830 million, according to data provided by Token Terminal. The popularity of the play-to-earn economy is evident from the fact that Axie Infinity earned significantly more revenue than decentralized finance (DeFi) heavyweights like Aave, Compound, Curve and SushiSwap.

    Launched by Sky Mavis in 2018, Axie infinity came into the limelight in the early third quarter as yield compression in bitcoin and DeFi drove hot money into gaming and NFTs.

    The game has become a significant source of income in countries like Brazil, the Philippines, Venezuela and Vietnam. It’s become so popular in the Philippines, that the government has expressed its intention to tax Axie players.

    Axie Infinity's monthly revenue in U.S. dollars (Axie World)

    Axie allows players to collect, breed, raise, battle and trade token-based creatures known as “axies,” which are digitized as their own NFTs. The game has two utility tokens, smooth love potions (SLPs) and axie infinity shards (AXS), which can be easily converted to cash.

    Breeding fees accounted for nearly 90% of the income in September, while the rest was earned from marketplace fees.

    The AXS token was trading near $78 at press time, up over 14,000% on a year-to-date basis, according to TradingView data. Prices reached a high of $95 in early September before retreating with the broader crypto market in the wake of China’s blanket ban on virtual currency businesses.

    “China’s crypto ban resulted in some downside for the token, but that was largely due to the high correlation nature of digital assets,” Denis Vinokourov, head of research at Synergia Capital, said in a LinkedIn post. “The underlying fundamentals remain very much intact, and demand for AXS and its ‘play-to-earn’ model will likely accelerate going forward.”

    Top dapps and blockchains based on cumulative protocol revenue in the past 30 days. (Token Terminal)

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Omkar Godbole

    Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


    Read more about