AxieInfinity

$AXS Axie Infinity stands as one of the most iconic names in the world of blockchain gaming, a pioneering force that blended cryptocurrency, non-fungible tokens (NFTs), and a "play-to-earn" model into an addictive digital universe. Launched in 2018 by Vietnamese studio Sky Mavis, the game has experienced meteoric highs, dramatic lows, and an evolving legacy that continues to shape the intersection of gaming and decentralized technology. This is the story of Axie Infinity’s journey—from its inception to its current chapter as of February 24, 2025.
The Genesis: A Vision Takes Shape (2017-2018)
The seeds of Axie Infinity were planted in 2017 by co-founder and CEO Nguyen Thanh Trung, alongside Tu Doan, Aleksander Larsen, Jeffrey Zirlin, and Andy Ho. Nguyen, a software engineer with a passion for gaming and blockchain, drew inspiration from CryptoKitties—a 2017 NFT-based game that allowed players to collect and breed digital cats—and the timeless Pokémon franchise. He envisioned a game where players could own, breed, and battle unique digital creatures, called Axies, while leveraging blockchain technology to ensure true ownership and economic incentives.
Development began in earnest that year, with the team aiming to create a decentralized game on the Ethereum blockchain. Unlike traditional games where in-game assets belong to the developer, Axie Infinity promised players control over their Axies as NFTs—unique, tradable tokens stored on the blockchain. In February 2018, Sky Mavis held a presale of Axies, selling 3,112 of these digital pets for Ethereum and raising initial funds to fuel development. By October 2018, the team released the game’s first battle system, a turn-based mechanic reminiscent of Pokémon, marking Axie Infinity’s official debut.
Early Days and Slow Growth (2018-2020)
Axie Infinity launched as a niche project in a still-emerging blockchain gaming space. Players could collect Axies, breed them using Smooth Love Potion (SLP) tokens, and trade them on an in-game marketplace for Ethereum. The game also introduced Axie Infinity Shards (AXS), a governance token that allowed players to influence the platform’s future. However, adoption was slow. The high cost of entry—requiring new players to purchase at least three Axies, often costing hundreds of dollars in Ethereum—limited its audience to crypto enthusiasts and early adopters.
Despite its modest start, the game’s Tamagotchi-like charm and strategic depth began to attract a small but dedicated community. In November 2019, Sky Mavis raised $1.5 million from investors like Animoca Brands and Hashed, signaling confidence in its potential. By 2020, the starting cost for a new player hovered around $400, a steep barrier that kept Axie Infinity on the fringes of mainstream gaming.
The Play-to-Earn Boom (2021)
Axie Infinity’s fortunes changed dramatically in 2021, fueled by a perfect storm of innovation, community ingenuity, and global circumstances. The COVID-19 pandemic had devastated economies, particularly in countries like the Philippines, where lockdowns left millions jobless. Amid this hardship, Axie Infinity introduced its "play-to-earn" model, allowing players to earn SLP and AXS through gameplay and cash out these tokens for real money.
The turning point came in May 2021, when a YouTube documentary titled Play-to-Earn showcased Filipinos in Cabanatuan City earning a living through the game. Word spread rapidly, and the Philippines became Axie Infinity’s epicenter, eventually accounting for over 40% of its player base. The game’s Scholarship Program, pioneered by the community, further accelerated growth. Wealthier players ("managers") lent Axies to new players ("scholars") unable to afford the entry cost, splitting the profits. This system turned Axie Infinity into a viable income source for thousands.
By mid-2021, the game exploded in popularity, reaching over 1 million daily active users by August. The AXS token soared from $3 to a peak of $155 in November, boasting a market cap of nearly $9 billion. SLP tokens, used for breeding, also surged, while the marketplace saw over $4 billion in NFT transactions, including a record $2.3 million sale for a virtual land plot. Sky Mavis raised $152 million in a Series B funding round in October, valuing the company at $3 billion. Axie Infinity had become the poster child of Web3 gaming.
Challenges and Crises (2022)
The rapid ascent couldn’t last forever. In early 2022, Axie Infinity faced mounting challenges. The game’s economy, heavily reliant on new player inflows to sustain token value, began to falter as growth slowed. SLP crashed in February 2022, losing over 99% of its peak value amid a broader NFT and crypto market downturn. Earnings plummeted, dropping below the Philippines’ minimum wage by late 2021, prompting a mass exodus of players.
Then, in March 2022, disaster struck. Hackers linked to North Korea’s Lazarus Group exploited vulnerabilities in the Ronin Network—Sky Mavis’s custom Ethereum sidechain—stealing $620 million in cryptocurrency, one of the largest crypto heists in history. The breach shattered trust in the platform, and while Sky Mavis reimbursed affected users with help from investors, the damage lingered.
In response, the team pivoted. In June 2022, the original game, dubbed Axie Infinity Classic, was phased out and replaced with Axie Infinity: Origins, a revamped version with updated mechanics and a focus on sustainability. However, the Web3 hype had begun to fade, and the game struggled to regain its former glory.
Adaptation and Resilience (2023-2025)
Since the 2022 setbacks, Axie Infinity has been in a phase of reinvention. Sky Mavis shifted focus from explosive growth to long-term viability, refining the game’s economy and gameplay. In 2023, the team introduced new features, such as enhanced land gameplay (delayed from earlier promises) and third-party developer support on the Ronin Network, aiming to expand the ecosystem.
By early 2025, Axie Infinity launched a free-to-play version of Origins, removing the NFT barrier to attract a broader audience. While daily active users have stabilized at around 359,000—far below the 2021 peak of 2.8 million—the game retains a loyal core community. The AXS token, though well off its highs, continues to trade, and the marketplace remains active, with over 500,000 Axie NFTs in circulation.
Legacy and Impact
Axie Infinity’s history is a rollercoaster of innovation, triumph, and tribulation. It introduced millions to blockchain technology, proving that games could be more than entertainment—they could be livelihoods. Its success inspired a wave of play-to-earn titles, while its struggles highlighted the risks of speculative economies and centralized vulnerabilities in decentralized systems.
As of February 24, 2025, Axie Infinity is no longer the cultural juggernaut it once was, but its influence endures. It remains a testament to the potential of blockchain gaming and a cautionary tale of its pitfalls. Whether it stages a full comeback or settles into a niche, Axie Infinity has already secured its place in gaming history—a bold experiment that dared to reimagine how we play, earn, and own in the digital age.
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