SLP’s prospects may be gloomy, but here’s why the odds may soon be in Axie Infinity’s favor

Where do baby Axies come from? Well, when two adult Axies really love each other, they drink the Smooth Love Potion and start a family.

SLP is the ERC-20 token used within the Axie universe to breed the NFT-based pets. To that end, the state of this digital currency can signal a lot about the health of the Axie metaverse in general.

Close your eyes, kids

Santiment metrics for SLP painted a gloomy picture for the token’s prospects. For starters, SLP appears to be hitting a new low every day, and its price of $0.010763 on 6 February 2022 was lower than its price exactly a year ago.

Source: Santiment Insights

Santiment also observed that crowd sentiment appeared to be poor, and that there were close to no profits in the last few months.

On the flip side, however, on-chain activity has been increasing as the price fell. Additionally, whales with more than $100,000 in SLP have been accumulating since late last year, despite SLP’s price free-falling.

Meanwhile, Nansen stats showed that overall, more SLP is being made than burned on a daily basis, echoing criticism of the Axie universe’s highly inflationary economy. No doubt this was also linked to the fall in price.

Source: Nansen

Some PG-rated updates

A Spanish edition of the Axie Infinity newsletter admitted that the game has been facing a time of “economic uncertainty.” To that end, efforts are on to combat Axie Infinity’s problems with inflation and the rising barriers of entry for new players.

A translation of the newsletter also pointed out that around four times more SLP is being made than burned on most days. It confirmed that the 50 SLP earned through the adventure mode will be removed. This should reportedly cut down about 130 million SLP tokens per day. Also, pulling the daily mission is intended to cut back on 45 million SLP tokens per day.

About the native AXS token, the newsletter reported,

“For Season 20, we have expanded the number of leaderboard spots to 300,000 and increased the number of AXS we give out to 117,676.”

Axie feeling feisty?

At press time, AXS was changing hands at $61.92. This was after a 13.54% rally over the past 24 hours. Might this be a sign of the game’s changing fortunes?

Well, investors should hope so. Especially since AXS is still a very long way from its $160+ highs of 2021.