The Play-To-Earn gaming model could’ve been the best thing that ever happened to avid gamers, filling up their crypto wallets with money. Unfortunately, this bubble popped, with Axie Infinity leading the way, dropping 99% from the all-time high.
Largest Play-To-Earn Franchise Has Shed Billions in Market Cap
Axie Infinity (AXS) was the largest Play-To-Earn franchise, but AXS ended up dropping 99% from its all-time-high price, losing billions in market capitalization.
The industry’s largest gaming guild, Yield Guild Games (YGG), has also dropped 85% from its ATH and other guilds – GuildFi (GF), Good Games Guild (GGG), MetaGaming Guild (MGG), and Guild of Guardians (GOG), all lost about 80% of their market caps.
What’s more, Play-To-Earn community tokens, such as CHAIN, DPET, PVU, and others, are down 95%.
Play-To-Earn Failed To Provide On Its Promise
Play-To-Earn was supposed to help low-wage workers make a living by playing games in their free time. Plus, some wealthy benefactors would loan their NFTs to poor employees, helping them progress in the game but keeping the percentage of their earnings.
Axie alone had about 20,000 Filipino workers playing the game, repeating tasks, only to be used by a small group of people who made in-game NFTs.
Plus, after the Ronin hack last month, Axie continued suffering, as people lost the confidence they had in the game. It’s now known that Axie developers and founders pushed the adoption and made many mistakes along the way.