With crypto-backed play-to-earn games steadily declining since the beginning of the year, many believe that these projects are bound to fail.

A typical project that is suffering from the indifference of gamers is Axie Infinity. After the boom of 2021 that saw the project hit a record high, the game’s growth rate in 2022 so far has mostly slowed.

Ecosystem indicators continuously decline

According to Axie Growth Data, the game project recorded many significant declines this year. This is mainly because the crypto winter is hard on the general market and the project is unable to sustain the interest of gamers.

As of August 1, the number of daily active users on the platform reached 260,246, a far cry from the all-time high of 2,718,810 on November 15, 2021.

On May 10, when active users dropped 14.27% that week, Jeffrey Zirlin – co-founder of Axie Infinity said they “have been in a similar situation and know what to do”.

However, it seems that they were overconfident as efforts to restore player interest kept failing. For example, after the release of Axie Infinity V2 on May 23, the number of gamers on the network rapidly decreased by 21% in the following 14 days.

Axie Infinity Daily Active Users | Source: Ronin Daily

In addition to the declining number of active gamers on the platform, the volume of sales on the network is also significantly lower. As of August 1, sales stood at $7,438,174, down more than 10,000% from the all-time high of $1,030,753,400 recorded last August.

In addition, land owners on Axie Infinity have also decreased since the beginning of the year. There were only 623 land owners as of August 1, 77% lower since January.

Will AXS have better days?

Over the past year, the number of token transfers on the network, senders, and receivers on Axie Infinity all slid south.

Number of transfers, sender, receiver | Source: Ronin Daily

A year ago, AXS was valued at $42.66. At the time of writing, the token trades at $18.28 at press time, down 50% over the past 365 days.

At the same time, the market capitalization has slipped from $2.59 billion to $1.51 billion and is now ranked 42nd.

Market cap (orange) and AXS price (green) | Source: Santiment

Interestingly, despite the aforementioned price drop, whales holding between 10,000 and 10,000,000 AXS tokens gradually accumulated more.

At the time of writing, this stands at 84.57 million – a 10% increase from the 76.32 million AXS in this whale category held from a year ago.

BTC price (green) and whale holdings have 10,000-10 million AXS (gold) | Source: Santiment

Furthermore, the 365-day MVRV of AXS decreased significantly (-55.38%). This shows that many investors have not made a profit in the past year.

MVRV (orange) and AXS (green) rates | Source: Santiment
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