Axie Infinity Loses 45% of Active Users: The REAL Reason (It's Not Just the Hack)
While the massive Ronin Bridge hack sent shockwaves through the crypto gaming world, the truth is Axie Infinity's user base was already dwindling before the incident. Contrary to the belief that gamers are leaving the popular play-to-earn game Axie Infinity because of the recent hack, available information shows that the platform had lost a significant portion of its players.
According to the data provided by Sky Mavis, the creators of Axie Infinity, on March 28th, the game had 1.48 million daily active users – 45% less than the number it boasted just a few months prior. The game’s daily active users peaked in November, but fell 45% to 1.48M by Ma, according to recent data from Sky Mavis, approximately a day before the Axie Infinity – a play-to-earn game by Sky Mavis – underwent a downfall in the regular user base thereof even in advance of the latest hack of Ronin Bridge that Axie saw its active users soar to its peak back in November, but slipped down the hill by the end of March, as per a recent information by Sky Mavis, about a day
What Caused the User Drop Before the Hack?
So, if it wasn't solely the hack, what factors contributed to this significant decline? Several likely reasons include:
- SLP Token Inflation: The Smooth Love Potion (SLP) token, earned through gameplay, faced significant inflation. Its value plummeted, making it less lucrative for players to earn a substantial income.
- Economic Adjustments: Sky Mavis implemented changes to the game's economy to address inflation. These adjustments, while necessary, often reduced earning potential for many players, particularly those in developing countries who relied on Axie Infinity for income.
- Increased Competition: The play-to-earn gaming landscape is rapidly evolving. New and exciting games are constantly emerging, offering players alternative ways to earn crypto.
- High Barrier to Entry: The initial cost of purchasing Axies to start playing remains a significant barrier for many potential users.
The Hack Only Exacerbated the Problem
While not the primary cause of the initial user decline, the Ronin Bridge hack undoubtedly worsened the situation. The loss of funds and subsequent uncertainty further eroded trust in the platform and accelerated the departure of some remaining players.
The Future of Axie Infinity
Axie Infinity faces a significant challenge in regaining its former glory. Successfully addressing SLP inflation, improving the game's economy, and fostering a sense of trust and security among players will be crucial for its long-term survival. The game needs to offer compelling gameplay and sustainable earning opportunities to attract and retain a loyal user base, regardless of external factors.