Axie Infinity

Axie Infinity is a blockchain-based game developed by Sky Mavis, a Vietnamese studio founded by Trung Nguyen. Launched in 2018, Axie Infinity became a global phenomenon in 2021 when its play-to-earn model attracted millions of players — particularly in the Philippines and Southeast Asia — who earned real income by breeding, battling, and trading digital creatures called Axies. At its peak, the game generated over $1 billion in revenue and had a fully diluted valuation exceeding $40 billion, making it the poster child for blockchain gaming and the play-to-earn revolution.

The game requires players to own or rent a team of three Axie NFTs to participate in battles. Winning battles and completing quests earns Smooth Love Potion (SLP) tokens, which are needed for breeding new Axies and can be sold on exchanges for real money. AXS serves as the governance token and premium currency, used for staking, governance voting, and accessing premium game features. The breeding mechanic and NFT marketplace created a self-sustaining economy — at least temporarily — where new players paid for Axies, providing exit liquidity for existing players.

However, Axie's economy proved unsustainable. As new player growth slowed in 2022, SLP prices collapsed and the income that had attracted millions vanished. The Ronin Bridge hack in March 2022 — where North Korean hackers stole $625 million — further devastated confidence. Sky Mavis has since rebuilt, launching Axie Infinity: Origins (a free-to-play version), upgrading the Ronin sidechain, and diversifying the ecosystem with new games. By 2026, Axie Infinity has evolved from its play-to-earn origins into a more traditional gaming platform with blockchain elements, serving as a cautionary tale and learning experience for the entire Web3 gaming industry.