At the peak of the COVID-19 pandemic, Axie Infinity emerged as a runaway success in the gaming world, attracting players to its blockchain-based platform where they could earn cryptocurrency tokens for their gameplay. However, following a significant decline in the broader cryptocurrency market in 2022 and a staggering hack that drained players’ earnings, many users abandoned the game. A recent study from Cornell University examines why a dedicated segment of players chose to remain and adapt rather than walk away.
The research, conducted by Jordan Ali, a doctoral student in information science, alongside Gili Vidan, an assistant professor in the same field, delves into social media narratives from the Axie Infinity community. Their analysis reveals that a substantial part of the player base approached their participation in the game with strategic awareness, aiming to navigate challenges and safeguard their investments.
“Axie Infinity was one of the most sought-after NFT play-to-earn games during the pandemic,” noted Ali. “Though it currently operates in a different capacity, it still retains a user base.”
The study, titled “Playing, Earning, Crashing, and Grinding: Axie Infinity and Growth Crises in the Web3 Economy,” has been published in the journal Big Data & Society.
In Axie Infinity, players engage by buying unique digital creatures called “axies,” which exist as NFTs on a blockchain. These creatures can be bred, traded, and pitted against each other in battles. Participants earn in-game tokens tied to Ethereum’s cryptocurrency, which can later be converted to real-world currency. As the pandemic pushed more people to seek remote income sources, the game’s popularity soared. Particularly in the Philippines, some players joined Axie Infinity as it became a vital source of income.
Despite scrutiny labeling Axie Infinity as a Ponzi scheme—due to its reliance on new player investments to sustain token value—the developers at Sky Mavis aimed to bridge users into Web3. This concept promotes a decentralized internet where individuals control their own data and assets, contrasting sharply with Web2.0, dominated by large tech companies. The developers hoped Axie Infinity could act as a “killer app,” ushering users into this emerging framework.
The cryptocurrency market’s inflation saw initial NFTs rise from approximately $5 to $1,000, prompting existing players to establish scholarship programs, lending NFTs to newcomers in exchange for a share of their earnings. These “managers” even shared strategies through online platforms, coaching new players to maximize their success.
However, the game’s trajectory shifted dramatically in mid-2022 when hackers stole approximately $620 million, marking it as one of the most significant crypto hacks ever. Concurrently, wider declines in the cryptocurrency market rendered many players’ tokens worthless, leading to a plateau in new user growth and increasing dissatisfaction among the existing player base. Many openly expressed their frustration with the game’s decline in fun, admitting they had initially played for financial reward rather than enjoyment.
Ali and Vidan’s analysis posits these remaining players aren’t merely victims of circumstance; they actively acknowledge the risks involved and are making concerted efforts to manage them. Despite a 90% decrease in its user base from its peak, Axie Infinity continues to see around 400,000 regular players today.
The game’s ongoing life also symbolizes the broader aspirations for Web3. Many subsequent gaming and Web3 projects have adopted elements from Sky Mavis’ initial vision, and recent updates have demonstrated the developer’s commitment to evolving the platform.
“The persistence of Axie Infinity reflects the enduring appeal of decentralization,” Vidan emphasized. “Even with its shortcomings, there’s a compelling narrative around the potential of decentralized systems as a new paradigm for internet interaction.”
The study not only sheds light on the current state of Axie Infinity but also suggests that while obstacles abound, the foundational concept of Web3 continues to resonate with users.
