Axie Infinity Loses 45% of Active Users, and It’s Not Because of the Hack

Paigambar Mohan Raj
Source: Financial Times

Axie Infinity, the popular Non-Fungible token (NFT) based game, has seen a steep decline in its number of users. According to recent data from Sky Mavis, the game’s daily active users dropped by 45% to 1.48 million on March 28, 2022, after peaking in the number of users in November.

Although the recent hack on the 23rd of March, in which hackers stole 173,600 ETH ($600 million) and 25.5 million USDC ($25.5 million) from Axie’s Ronin bridge, added a lot of dirt to the Axie Infinity brand, the decline in the number of users has been ongoing since December. The hack only added fuel to the fire that was already eating away Axie Infinity’s users.

One of the major reasons for the decline of users in December was due to the update regarding the “Breeding Fee”. Additionally, in December there was a rapid selloff of the in-game “Smooth Love utility” token, which further dropped the price.

According to Martin Lee, a data journalist at Nansen,

“Daily earnings dropped, and so did interest in the game. Those that bought in at the highs started to feel fearful and naturally doubt creeped in,”

Players are also looking forward to the game’s “Origin” patch, which aims to revive, improve, and expand the depth of gameplay, according to Lee. It can be said that the game’s lack of timely developments and updates has led to its downfall.

Sky Mavis, the company behind Axie Infinity and Ronin, has stated that it is dedicated to reimbursing players as quickly as feasible but has not stated how they intend to do so in the event that the monies are not recovered.

Sky Mavis’s inability to give a clear timeline on the reimbursement to the users has created an atmosphere of distrust. This has only further propelled players away from Axie Infinity.