Thread by @DaanCrypto

How did $AXS 10x in a month?

For all of you that have been wondering how this $AXS & $SLP increase could have happened and what to look out for next.

1/22

🔹What drives the $AXS & $SLP price?

Besides the general speculation and investing, the thing that is mainly driving this huge increase in price is the utility these tokens already give.

Current price: $AXS $28 and $SLP $0,35.

2/22

They are both used in breeding new Axies. Breeding is where you take two axies and breed them for a $SLP and $AXS cost which gives you 1 new Axie with combined genes from the two parents.

3/22

The breeding cost goes up per breed the parent has.

This costs 4 $AXS total and the $SLP as stated in the picture below. The $SLP is per parent.

That means the cheapest breed would cost 4 $AXS and 300 $SLP. This is approximately $220 at the time of writing this.

4/22

🔹Why are people breeding?

The cheapest Axie's available on the market are approximately 0.25 ETH ($500) now.

That makes a lot of breeds very very profitable. I've personally been doing this for a while and the margins are insane. Especially if you have good Axie's.

5/22

🔹Why are the Axie prices so high?

This is because players can earn anywhere from 150-600 SLP daily depending on how good they are and how much they play.

That means $52,5-210 a day.

6/22

This makes playing the game very attractive, especially for people where the average income in their country sits way below that.

But you need 3 Axies to play ($1500). How do these people afford that? They don't. Usually.

7/22

🔹Axie Scholarships

This is where Axie Scholarships come in.

The biggest breeders are the people that own Axie Scholarships.

These are people with big pockets that breed certain Axies that are good for battling.

8/22

They then borrow out these accounts and usually take a 50% profit cut themselves.

This can be done without the other person having access to the actual Axie's. This means it's safe for the owner of the account.

9/22

Some of these scholarships have over 3000 people playing for them and are still scaling up daily.

This means that they have 9000 Axies which would be worth $4.5M+ currently.

10/22

The scholars earn approximately 180 SLP a day which nets the owner of the account about 90 SLP after the profit cut.

Meaning about $31.5 a day profit per scholar towards the owner of the account.

11/22

So these scholarships with 3000 scholars are now earning 31,5 * 3000 = $94.5K a day.

Or $2.835M each month.

Now you can see that the time to ROI is very attractive sitting at just 1-2 months.

This means these scholarships are more than happy to keep expanding/breeding.

12/22

Now you have an idea of why $AXS and $SLP are going up in price this much. There's likely hundreds of millions of people that would earn a better daily wage by playing @AxieInfinity that also have access to internet and a smartphone.

13/22

🔹Where does it stop?

So does this keep going on until half the world is playing Axie Infinity?

Well, the show could definitely go on for a bit but let's take a look at how prices move and see if it's sustainable at all.

14/22

$SLP Price High ➡️ More People want to play.

More people want to play ➡️ Axie Price up.

Axie Price up ➡️ More Axies will be bred.

Breed more Axies ➡️ Burn more SLP/AXS.

Burn more SLP ➡️ SLP/AXS Price rises.

This all strengthens each other A LOT.

15/22

But while that is happening:

More Axies ➡️ More people play.

More people play ➡️ More $SLP generated each day.

This means the inflation is going up every day as more people are playing the game.

16/22

The turning point will likely be when the daily inflation completely covers the demand for new axies each day. Currently everything is absorbed by the breeding because people want to play because the $SLP price is high.

17/22

Now, when $SLP generated daily > SLP burned daily that will usually mean SLP Price goes down. Then you can literally turn the entire scheme around and see what happens.

18/22

$SLP Price Low ➡️ Less demand from new players or players quitting.

Less demand from new players or players quitting ➡️ Axie Price down.

Axie Price down ➡️ Fewer Axies bred.

Fewer Axies Bred ➡️ Fewer SLP/AXS burns.

Fewer SLP/AXS burns. ➡️ SLP/AXS price goes down.

19/22

This is something that everyone that is investing into $SLP and/or $AXS should be very aware of.

Like I said, it can definitely go on for a long time to come and Axie itself is definitely here to stay.

20/22

I've personally invested in Axie over a year ago and have seen it grow to what it is right now. All without marketing and while keeping a solid community of super friendly people.

I couldn't be happier for the people that have worked all these years to achieve this.

21/22

Not many people on CT seem to actually know what is happening behind the scenes and how this all has happened. Which makes sense if you've not been part of Axie for a while.

I hope this thread has made everything a little clearer for everyone. 👍

22/22