DeFi is converging with non-fungible tokens (NFTs), with Axie Infinity, the Ethereum-powered game, which has planned to launch the project’s governance token.
It has been reported that the game, since launching in February 2018, has attracted more than 7,000 token holders, and more than 4,500 active marketplace participants.
🛠️Despite the high gas, we push onward. 📈Axie holders and buyers going parabolic. pic.twitter.com/NfoKGnUSZA — The Jiho (@Jihoz_Axie) August 17, 2020
However, it was recently ranked the No.11 NFT game by lifetime Ether volume with 4,570 ETH.
NFT gaming as a category is heating up and some games are starting to converge with DeFi. Axie Infinity ranks 11th in total volume and has more owners than most other top NFT collectibles. pic.twitter.com/YTJDNzxXSf — Mason Nystrom (@masonnystrom) August 19, 2020
Axie Infinity is a decentralized turn-based strategy game that draws influence from Pokemon and Tamagotchi with players able to breed, battle, and trade NFT-based fantasy creatures dubbed ‘Axie.’
Based on the number of NFT owners, Axie has outgrown all of the titles ranking in the top ten by volume, except for Gods Unchained and CryptoKitties.
According to the report, Axie Infinity shares some characteristics with DeFi, with users composing guides instructing players how to ‘farm’ Axies to generate a consistent income, as players can currently earn the ‘Small Love Potion’ (SLP) utility token by playing the game, with the token being required to breed new Axies. SLP is currently trading for $0.046 and has a 24-hour trading volume of $38,200.
The recent spike in Axie Infinity users has been attributed to anticipation for the project’s upcoming governance token
Jeff Zirlin, the co-founder of Axie Infinity, has announced about the token on August 9 by tweeting that a native governance coin would launch before 2021.
🌟What project with: – Over 6,500 in discord – 5,500 eth in lifetime network revenues – Memes – #1 in weeky,monthly users for nfts Is planning to launch their native gov. Token in 2020? 🤐🤫🤔 — The Jiho (@Jihoz_Axie) August 9, 2020
As per the report, Axie is not the only crypto gaming company looking to bridge NFTs and DeFi, with Polyient Games announcing that it will issue membership and rewards ERC-20 token that can be used to provide liquidity to the market’s pool.
In July, the company also revealed that it would bring an “NFT-focused decentralized exchange” onto Ava Labs’ Avalanche platform.
Thus, Polyient’s Craig Russo described NFTs as beginning to emerge as “a standalone asset within DeFi,” emphasizing the growth of lending markets and fractional trading for the tokens.