Axie Infinity has lost more than 80% of its value in just 6 months, leaving many investors at the peak of disappointment and buried in debt.

Both AXS and SLP, the tokens of Axie Infinity, are plummeting relentlessly.

The values of AXS and SLP tokens in the Axie Infinity game are sliding further as recent economic model changes fail to retain players.

AXS and SLP prices keep dropping

The AXS token of the Axie Infinity game has lost over 50% of its value in April 2022, marking the first time it has fallen below the $30 threshold since July 2021 - the peak of the frenzy surrounding this game and its Play-to-Earn model.

At the time of writing, AXS is trading around $29.35, but has dropped as low as $26.51 on May 1st. To put this into perspective, AXS was at $67.40 on April 1st. Since the beginning of 2022, AXS has lost 73% of its value.

AXS market capitalization has plunged from $4 billion a month ago to just $1.78 billion now.

Meanwhile, the reward token of the game, SLP, hasn't fared much better, dropping by 46% in April, despite already being at very low levels. Since the beginning of 2022, SLP has evaporated by 63.2% in value.

The trading prices of Axie's NFTs have similarly been halved in 2022.

Why did Axie Infinity collapse?

The direct reason for the decline of both currencies stems from the hack of Axie Infinity's Ronin bridge at the end of March, resulting in the most significant cryptocurrency industry attack to date with losses amounting to $622 million.

Although Axie Infinity's issuing company, Sky Mavis, later pledged full compensation for players, even raising $150 million to achieve this goal, and implemented security and Ronin management system restructuring, it seems insufficient to reassure investors.

Furthermore, the latest version of Axie Infinity, known as Origin (or Axie v2), debuted in April without much fanfare as expected due to numerous lingering bugs. This is why Season 21 of the game continued to utilize the older v3 version and will extend from April 25th to June 21st. Sky Mavis asserts that Season 21 will mark the final season of Axie v2, with rewards totaling over 130,000 AXS tokens.

According to data from Dapp Radar, it's evident that since the beginning of 2022 and particularly from February (when the SLP changes were implemented), both the number of Axie players and transactions have significantly decreased. However, transaction volume saw a slight increase in April due to the Origin launch event before gradually declining.

In reference to Coin68.

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