A new study claims that many new players to the play–to-earn game Axie Infinity ( AXS), do not buy the Axies, but borrow them from other users. This allows for “the rich to get richer” in the game.
“Not many players are breeding Axies due to current high prices,” according the research by the multi-blockchain API provider Covalent.
Axies are characters that were originally purchased as non-fungible tokens in order to play Axie Infinity. A minimum of three Axies were required for new players, while existing players can be rewarded for breeding new Axies.
According to the report, some people find it difficult to buy Axies due to rising prices. The report also stated that the rise in the cost of Axies has resulted in the creation of “scholarship programmes”, where users can borrow the Axies from their existing users.
“With the slow growth in Axie buyers since September, approximately 50% of traffic has come from previous buyers.” According to Brandon Rochon, a Covalent researcher, the steady growth implies high churn rates for new users.
Axie Infinity is a crypto-based play-to-earn game that rewards players with SLP tokens in return for playing the game. According to the report, growth in the number of players who claim SLPs is declining, but growth in the overall game player base has remained steady.
The report stated that it is troubling that a smaller percentage of new players are claiming rewards. It explained that this is a development in the game where “the wealthy get richer” and that the game could end with an elite.
It also stated that Axies can be bred by borrowing or buying them. However, the cost of breeding Axies is increasing depending on how many times they have been bred.
Breeding Axies over SLP would be more profitable when Axie prices were high and SLP prices are low, the report stated. The decline in breeders since August also reflects this trend.
more than 51% of May’s new users were also breeders. But, this percentage has fallen steadily to the point that only 2.7% are breeding now,” Covalent researcher wrote.
The report said that despite these difficulties, Axie Infinity is still growing at an “astonishing rate” that continues to rise each month.
The report estimates that if the current growth rate continues, play-to-earn will reach 10 million players by December.